Foreign investors were used to be reluctant to buy properties in the UAE because of the history of some reasons including the national laws that limit foreign ownership. However, with the issuance of the Freehold Decree that permits foreigners to purchase, lease, rent or sell a property at their own discretion, international investment started to soar, making UAE a global hotspot.
Engaging in Dubai real estate doesn’t need special permissions, which makes it an easy and possibly profitable process for overseas investors. As rental costs in the city increases, purchasing a property here becomes more attractive than ever. When buying a property in this growing city, here are some things to consider:
Purpose of Buying
Before you enter the real estate market, make sure you determine why you are buying a property in Dubai in the first place. You could be doing this for investment or residential purposes. Your reasons for buying here impacts the kind of property you must get. For instance, if you are after an investment, you will need to buy a property that you can rent out. This requires you to research properties that provide the highest yields.
Buying Off Plan or Resale
Dubai properties that you can get from developers are your best options to make sure you get a good catch. Make sure you work with a real estate agent to keep you informed in every step of the process. You will have to get to know a developer first to be sure about their reputation. Keep in mind that though homes from developers may not even be constructed yet so take time visiting show homes and presentation centers to know what to expect.
Moreover, you can also prefer to buy homes directly from owners, if you prefer an older one. The process involves agreeing on a Memorandum of Understanding that outlines the agreement’s terms and conditions. This document also details when you should make the final fund transfer to the seller. You will need to put a down payment, which is usually 10% of the property’s price. At this time, it might be necessary to pay the commission of the real estate agent.