Closing a deal on a property in Dubai is definitely one of the most significant investment decisions you are going to make during your whole life. As a matter of fact, many people would like to have this chance so they can enrich their portfolio with such a quality asset.
However, before going on such a deal, there are a number of things you have to know. As a real estate portal working in Dubai, we feel it’s part of our responsibility to let you know the main do’s and don’ts in this market. Maybe because we have been asked a lot also from many potential buyers and investors about the main things to be known before buying in Dubai, that’s why we will try here to list the most important things to be considered.
1. Dubai Location
Dubai is a part of the GCC state United Arab Emirates. The UAE was established in the second of December, 1972 by the late Sheikh Zayed bin Sultan Al Nahyan. Dubai is governed by his highness Sheikh Mohammed bin Rashid Al Maktoum, the vice president, minister of defence, and the prime minister of UAE. Following his brother, Maktoum bin Rashid Al Maktoum, continues through his wise leadership on the way of turning Dubai into one of the world’s most prominent business centers and a top investment destination.
2. Authority in the emirate
His Highness Sheikh Mohammed bin Rashid Al Maktoum became the ruler of Dubai in 2006. He presides the government of Dubai which is the main executive authority in the emirate that runs the city. Dubai government contains 30 different departments that control the main integral matters in the city including safety and security, roads, health, education, court, finance, and the one mainly related to property market, the land department.
3. What is Dubai Land Department?
Dubai Land Department (DLD) is the executive entity entailed to regulate and monitor the real estate market activity within the emirate’s bounds. As per the law no. 7 issued in 2013 by his highness Dubai ruler, the department’s main role is the registration, organization, and promotion of real estate investment in Dubai. It does so by implementing the international standards in this vital sector in order to create a positive and attractive investment ground for real estate sectors from all around the world.
4. Demographic structure
Dubai is known to be a mixing pot mingling between various nationalities from different areas around the world. Being a world top business hub, the emirate grabs professional executives to work in its sophisticated facilities and business centers, in addition to join the world’s famous companies which launched their venues in the city. Population is 2.7 million, about 88% are expats. About 71% of the emirate’s total population is from Asian ethnicities including Indians, South Asians, Pakistanis, and many others from different origins.
5. Freehold areas
In 2000, Dubai authority made it accessible for foreigners to buy properties within its bounds but only in certain areas known as freehold areas. Dubai freehold property areas are found in Um Hurair, Al Barsha, Emirates Hills, Jebel Ali, Al Gouz, Ras Al Khour, Nad Al Shiba, and many other.
6. Leasehold areas
Full ownership isn’t permitted in all Dubai localities. There are some other areas where properties are given only on lease for periods of time varying between 10 and 99 years. There are many leasehold areas in Dubai like Deera, Discovery Garden, Jumeirah, and many other. So, as a buyer, you need to check first the area of your future property if its a freehold or leasehold area.
7. Reason of investment
You really need to set your mind before setting off your property search in Dubai to define the purpose or the reason of buying. If you are looking for investment, then you should consult your agent as there are certain areas considered to be perfect for property investment. They are characterized with high rental value, high capital growth rate per year, and they are surrounded with many amenities and commercial centers. On the other hand, if you are looking for a house to live and settle in Dubai. Then you ought to look for convenient areas suitable for you and your family requirements. You should check first the locations of the best schools, hospitals, recreational centers, and many other.
8. Real estate finance in Dubai
Another important thing you need to know before buying a property in Dubai is the real estate finance system in the emirate. Financing services for property buyers is available, however it’s restricted only on banks and companies authorized by the United Arab Emirates Central Bank. Most home loans in Dubai are offered at a rate ranging between 3 t 4 percent. To get a mortgage, the creditor must check the investor eligibility in order to check his financial capability of paying back the debt. This is determined through a number of factors like; the minimum salary, minimum length of service, the company which the buyer works for, and many other.
9. Research the area and the developer
Investors should also be very careful about the location of the property. There are some things you need to check like the crime rate and security. Generally, Dubai is a safe haven in the Middle East, it enjoys a swift police and security system that utilizes extremely advanced techniques in ensuring order. Check also the developer’s track record. Today many investors tend to deal with top real estate brands in Dubai like Damac, Emaar, and other since they offer the highest credibility and professionalism in conducting work.