With the fast expansion of Freehold homes, foreigners may now buy the best property in Dubai more efficiently than ever before. To buy a freehold property in Dubai, you must go via a government-approved property or real estate developer, such as DAMAC Group.
Dubai’s real estate industry is growing, with a solid residential and commercial property market. The Dubai property market is hugely different from other markets across the world. Therefore, you must work with a trustworthy and knowledgeable agent to help you.
Rising rents and a strong property market have made purchasing residential and commercial property in Dubai, an increasingly appealing choice for foreigners.
The Reason Behind the Purchase
Why are you purchasing? Purchasing an off-plan house is quite different from buying it as an investment for resale or from letting. The purpose of your purchase will dictate the type and location of the property you should look at.
If you buy for investment purposes, you will eventually rent the property. Thus, you should seek the residential or commercial property with the best rental yield. For example, one-bedroom flats outperform huge villas in terms of return; hence, while having an estate in Dubai may seem appealing, acquiring an apartment would make more financial sense.
The Buying Procedure
To buy residential or commercial property in Dubai, you must be at least 21.
The first step is to make a verbal offer to the seller. Once this is agreed upon, a formal contract is created; a deposit is placed, the buyer receives financing, the seller guarantees that the terms are met, the final payment is made, or in the case of mortgages, a payment plan is negotiated, and the deed is transferred.
The procedure may alter depending on whether the home is purchased off-plan or from a private seller.
Purchasing Off-The-Plan Property
When purchasing an off-plan property, you must submit a completed reservation form and your passport. The reservation form summarizes the terms and circumstances of the sales agreement, payment plan details, and the buyer and seller’s personal information.
A reservation deposit or other agreed-upon amount is paid, and the sales and purchase agreement is written. The purchase agreement will include the completion date of the property as well as the compensation that will be provided if the property is not completed within the specified time frame.
The purchased property is finalized after the buyer transfers the deeds. It is done in the developer’s office if the property is off-plan or at the Land Department if it is already registered.
Purchasing a Secondhand Home
When buying from a private seller, the buyer and seller sign a Memorandum of Understanding (MOU), which describes the terms and circumstances of the arrangement. The MOU also specifies the date on which monies will be transferred from the buyer to the seller and is non-binding.
The buyer then pays a deposit, typically 10% of the property price or the agreed-upon sum. This sum is frequently non-refundable. The legal transfer of deeds occurs once financing is received.