How to Buy a Property in Dubai, United Arab Emirates
The United Arab Emirates was formed in 1971 and consists of seven emirates, with Dubai being the most populated and well known. Dubai also has the second largest land mass and, with land reclamation projects continuing, is actually getting bigger. Dubai's economy, contrary to popular belief, is not based on oil. Income is derived from property, tourism and financial services.
Until recently, the property market was growing rapidly, as were property prices, but the recent global financial crisis hit property development hard, and resulted in many incomplete and unsold properties. Prices have fallen and consequently there is more room to make deals, so it may be an excellent time to buy a property in Dubai.
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Instructions
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Research Dubai's property laws. Laws governing the purchase and sale of property, particularly those affecting foreigners, have recently changed so it is important you understand them before making a large purchase. Check the resources section for a link on property law.
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Plan your budget. Choose the area of Dubai and type of property you want to buy. There are many websites where you can learn about Dubai and the types of property available. A few are listed in the resources section, but there are many more.
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Choose a couple of property agents to contact. Email, phone or use the link on their websites to make initial contact. Question them about the time they have been in business and choose an agent that has been established for some time and has been successful over the last few years.
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Ask your agent to email you details of properties that meet your criteria. If you are considering new construction, ensure that building work is ongoing and is on schedule. Many property developers have had to stop construction due to the downturn.
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Obtain payment terms from your property agent. These vary depending on whether you are buying a new property or secondary property. Regular installments are usually required on new properties with the final payment made when you sign the purchase agreement. A deposit is required to secure a secondary property with the total amount due when you take possession of the property.
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Take a trip to Dubai. Never purchase a property without viewing it in person. Ensure that your chosen property agent makes appointments to view as many properties as possible during your visit.
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Visit each property. Make detailed notes and take pictures. You need to make comparisons between properties after you've visited them, so this is the best way of keeping a record.
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Choose your property. Make an offer lower than the asking price. There are currently more properties for sale in Dubai than there are buyers, so buyers are more likely to get a good deal.
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Tips & Warnings
Although it is not usual to use the services of lawyers for property purchase in Dubai, it is sensible. You are making a large investment and need to be certain that all is in order.
You may have to pay a premium on a secondary property. This is payable to the seller and relates to the profit made when you buy compared to the original sale price. Check out amounts payable with your property agent.
References
Resources
- Photo Credit dubai creek night image by JULOR from Fotolia.com
