On Monday, the 17th of February, as property stocks reassembled, Dubai shares led gains among Gulf markets. The Dubai benchmark gained 0.8%. Arabtec Holding that had pronounced a loss for the fiscal year rallied to a 5.7%. On the other hand, Nasdaq (Dubai-listed DP World) mounted to a 10% after pronouncing it’s removal and ultimate rebound to a full state ownership in a deal valuing the company at $13.9 billion. Developer Union Properties soared 7.6% after mentioning that the Autodrome development’s financing process is nearing its completion.
Investing in a property may deem to be an intricate task. However it is way simpler than it seems. Certainly, one must acquire a plethora of knowledge to minimize the risk associated with taking an important decision, especially if you are a foreigner.
Initially you would need to know what you are going to use the property for. This will help with deciding factors such as location, type and area. Then you need to study the market to assess which factor and type of property will yield the best results. So, here is a guide to buying properties in Dubai.
1. Find the right property for you
A vital step would be to explore more about the purchasing process and involve local property agents and experienced experts to further guide you through the process. Another significant factor would be to decide whether the property you’re planning on investing in is for yourself or further investment purposes.
If you decide to buy it for the latter, it would be important to decide on your target tenants. For example if you wish to rent the property for tourists, it should be closer to the tourist hotspots such as malls, museums, restaurants and beaches.
If you plan on buying the ideal property for yourself, there will be various things to look at and consider such as your interests, the style of the property, location and the amenities included. Traffic impacts the decision-making as commuting to your workplace is a chief factor to consider thus considering a property which is within close proximity would be a good idea. Consequently there are more concerns when it comes to buying a property which is further explained.
2. The purchasing process
There are three main types of property that a foreigner is allowed to buy.
The first type of properties are freehold properties where foreign buyers who are looking to invest have the right to buy, sell and pass the property down as an inheritance. This is the most common type. Of course, it must be considered that freehold properties must be bought from developers who have been approved by the United Arab Emirates Government.
The next in the list are commonhold properties. They include apartments, with fees inclusive such as repair and maintenance. The ownership of such properties allows the buyer to sell, buy, rent the property and pass it on as inheritance as well.
The third type of properties are called usufruct properties which are long-term leases of a property. The time frame of such properties are 10 and 100 years. Furthermore, the investor has the right to do anything they would wish with the property which is inclusive of buying, selling, renting or passing it down as inheritance as long as the owner doesn’t destroy it completely.
3. Contact a lawyer and a real estate agent advice
It is crucial to contact a lawyer for further legal advice and a real estate agent for the finest insight on location, area, costs and alternatives. This is an important step in the process whilst buying property in Dubai or any part of the world as this makes the process seem less complex.
4. Assess the liability on the property
Before investing in a property, you must check if the property is free of any previous debt or liabilities thus performing a full background search would be the best idea. The seller, however has the accountability to attain a no-objection certificate (N.O.C) for the developer’s office.
Those were some factors to keep in mind before investing in properties in Dubai, especially if you are a foreigner.
We think the best platform to meet all buyers, developers and sellers under one roof would be the International Property Show which is the biggest platform of property sales in the Middle East, at the Dubai World Trade Center from 24th-26th March 2020. Registration is absolutely free!