How to buy an apartment in Dubai? Risks, Steps & Documents
- What to consider before buying an apartment in Dubai?
- Can foreigners buy an apartment in Dubai?
- How can I find a property in Dubai?
- Steps to buy an apartment in Dubai
- Documents needed to buy an apartment in Dubai
- What are the approximate prices of various apartments in Dubai?
- How do I choose the right apartment in Dubai?
- Advantages to buy an apartment in Dubai
- Drawbacks of buying an apartment in Dubai
Dubai has gained recognition among global investors and foreigners. Moving to Dubai is an option that many potential foreigners have considered whether for the lavish lifestyle or the enticement of tax-free living. All these factors made foreign & other investors buy an apartment in Dubai.
The Law reforms in recent years have allowed people to own apartments in Dubai. apartment acquisition is now quite simple, providing you with the necessary financing. You can even buy studio apartment in Dubai at lower prices.
What to consider before buying an apartment in Dubai?
If you want to invest or relocate to Dubai, whether for employment, to establish a business, or simply to enjoy life, you’ve undoubtedly thought of purchasing the apartment. Before buy an apartment in Dubai, seek professional assistance in understanding the local rules and regulations.
One of the nicest things about investing in Dubai’s real estate market is that there are so many available residential properties, villas, flats, and apartment types that may meet everyone’s needs. You can even buy an apartments in Dubai installments also.
Can foreigners buy an apartment in Dubai?
Foreigners can purchase, sell, and rent apartments in Dubai without any specific laws or licences, according to legal reforms made in 2002. The risks of buying apartment in Dubai for foreigners are less because of this policy.
People frequently prefer to acquire flats, townhouses, or villas in gated complexes with community recreational amenities such as tennis courts, swimming pools, grocery stores, and gyms.
How can I find a property in Dubai?
As a foreigner, you can generally purchase one of three categories of residential apartment in Dubai.
1) Freehold Properties
Foreigners looking to invest in the UAE or purchase a home in Dubai are more likely to seek freehold or leasehold properties. Individuals in the UAE have access to freehold properties, which can be rented, sold, or inherited if necessary. One can also purchase a freehold villa in Dubai.
2) Usufruct Properties
This is generally viewed as a long-term investment lease. The occupier of the apartment has no right to modify or adjust a usufruct apartment in any way. The benefit of buying properties in Dubai that are Leases for usufruct is they last for up to 100 years.
3) Commonhold Properties
This is equivalent to owning a freehold apartment. However, while commonhold homes are comparable to flats, owners must pay fees for apartment maintenance as well as common spaces. Typically, these structures are owned by a real estate or apartment developer. You can choose any of the above types to buy an apartment in Dubai.
Steps to buy an apartment in Dubai
- Determine the type of property in Dubai in which you are interested.
- Make proper research both online and offline or you can even attend apartment fairs to get an idea about the apartment.
- Before purchasing make sure that you are eligible to purchase the apartment. Keep all the necessary documents like ID, visa, etc with you.
- Mortgages in Dubai might be tough to get to buy an apartment in Dubai. In rare situations, purchasers may be asked to pay down between 20% and 50% of the mortgage amount in cash.
- In Dubai, mortgages are paid in monthly instalments. A mortgage plan might last up to 25 years.
- If you are purchasing an “Off-Plan” apartment, you must provide your passport along with the reservation form.
- Make sure you thoroughly understand the contract’s terms and get it reviewed by a lawyer.
- Formal sales and purchase agreements must be completed. Make sure this details the completion date of the apartment and the penalties the owner will face if it is delayed.
- To finalise the transaction, the deeds must be transferred. When acquiring an off-plan apartment. you need to pay the whole purchase cost at this time.
- Make a Memorandum of Understanding and pay the initial deposit if you are purchasing a “resale” apartment. After completing the purchase, obtain the deeds.
Documents needed to buy an apartment in Dubai
To buy new property in Dubai, your initial step should be to identify an apartment and agree on a price. Following that, you may be required to sign the contract. The required documents are listed below.
- A legal passport
- Proof of residency status to prove that you belong in Dubai
- Proof of current residence
- Proof of recurrent income or a salary certificate
- Bank statement demonstrating that you can afford the investment. Need to submit a 6 months statement.
Also read about: Buy an apartment in Chennai
What are the approximate prices of various apartments in Dubai?
- Two bedroom apartment costs between AED 1,250,000 to 2,450,000.
- Three-bedroom villa approximately costs between AED 3,000,000 to AED 3,850,000.
- Most of the people show interest to buy apartment in Dubai Marin which is around AED 2,450,000.
How do I choose the right apartment in Dubai?
- Select the right neighbourhood: Dubai Marina, AI Barsha, and International City are the most suitable places to live.
- Take care about choosing a parking place: Summer temperatures in Dubai reach above 50 °c and vehicles left outside not only become unbearably hot to drive, but also degrade swiftly. Before buy apartment in Dubai, make sure that you have a proper parking place.
- Traffic: Dubai traffic is famously awful. Choose an apartment that is near to access all the important places.
Advantages to buy an apartment in Dubai
From a residential perspective, Dubai is well-known for having one of the most favourable tax policies in the world. Buy an apartment in Dubai is a good idea for investment. You can get benefits like:
- Residence Visa
- Good return on investment
- No apartment Tax
- World-class infrastructure
Drawbacks of buying an apartment in Dubai
- New laws every time in real estate.
- Additional costs on a purchase.
- No possibility of getting UAE citizenship.
Since properties have grown cheaper, the Dubai apartment market has shifted to a buyer’s market. Compared to other big nations, buy an apartment in Dubai offers excellent value for money. From an investment point of view, Dubai is a great real estate market with various types of properties for sale and purchase including houses and luxury properties.
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