Guide to Buying Property in Dubai

Did you know that investing in the Arab property market wasn’t considered a wise decision prior to 2002? The UAE had many laws that limited foreign investment in the real estate sector, and fortunately, this changed back in 2002 when the Freehold Decree was introduced as a formal legislature. This made it possible for foreign nationals to purchase, sell, lease, and rent property in Dubai. The Dubai property market skyrocketed, and now, people from all over the world are buying housing units in Dubai as vacation homes. Not just that, but many investors choose to rent housing units thanks to the high rental yield or to turn a profit by selling them.

Thanks to the increased number of foreign investors, the Dubai Land Department reported an 18% increase year-on-year in the value and volume of real estate transactions in Dubai. If you are wondering what the best things you need to consider before buying a property in Dubai are, you have arrived at the right place. Today we are going to show you the top three factors that will help you make a good decision when buying a property in Dubai.

Consider Different Locations

Right from the start, we want to mention that you should not focus on a single community or place. Whether you are planning to purchase property in Dubai to have a place where you can spend a relaxing weekend with the family or rent it out for profit, it’s always best to consider different locations before making a decision. Dubai is infamous for bad traffic levels, and this is why you might want to consider purchasing a property that is not located next to traffic-heavy roads. Another important thing that we need to mention is property parking. This is a “must” if you are planning to purchase a housing unit that is located close to Dubai’s most popular touristic attractions.

Off-Plan vs. Resale

The most significant difference that you will notice in the Dubai property market compared to other areas is that there are two ways to purchase properties. You can either choose “off-plan” or “resale.” A property is called off-plan when you are buying it from a developer. Here is where you need to do your due diligence and verify if the developer can be trusted and finish building the property on time. Otherwise, you will be left waiting for months on end. The alternative resale option is when you choose to purchase property in Dubai from a private seller. An important side note here is that when purchasing off-sale, expats are required to submit their passport.

Implement an “Opt-Out” Clause

The last tip that we want to share with you when buying property in Dubai is implementing an opt-out clause in the contract. If you purchase a property with a mortgage, you need to include the opt-out clause in the sale agreement or the MoU (Memorandum of Understanding). The clause makes it possible for the purchaser to prevent the loss of the deposit money required to secure a property. The clause is essential because the bank evaluation of the property can always turn out lower than the expected price.