With the fast expansion of Freehold homes, foreigners may now buy the best property in Dubai more easily than ever before. If you want 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 strong residential and commercial property market. The Dubai property market is extremely different from other markets across the world, therefore you must work with a trustworthy and knowledgeable agent to help you through the process.
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 to live in is quite different circumstance from purchasing it as an investment for resale or to let. The purpose of your purchase will dictate the type and location of the property you should look at.
If you are buying for investment purposes, you will eventually rent the property, thus you should seek the type of residential or commercial property with the best rental yield. For example, one-bedroom flats outperform huge villas in terms of return; hence, while having a villa in Dubai may seem appealing, it would make more financial sense to acquire an apartment.
The Buying Procedure
To buy residential or commercial property in Dubai, you must be at least 21 years old.
The first step is to make a verbal offer to the seller. Once this is agreed, 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 somewhat depending on whether the home is purchased off-plan or from a private seller.
Purchasing Off-The-Plan Property
When purchasing off-plan property, you must submit a completed reservation form together with 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.
Following that, 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. This 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, which is 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.