Dubai is known to be a haven for property investors, and there are lots of new projects launched every year. The emirate is on a continuous run of development and growth and offers lucrative investment options to seasoned investors. If you are interested in buying properties in Dubai, here we have brought some key information that will help you understand the market and make the right decisions at the right time. Let’s check out.
First of all, the payment schedules in Dubai’s property market can be expected to range in increments from 10% to 20%. It’s solely the developers’ discretion as to how they’d want to structure things up. You can buy off-plan properties here as well, and its benefit is that the re-sales can give you comparatively higher premiums and can considerably reduce the profit margin on your investment.
Who Is Eligible To Buy?
Dubai has a pretty simple eligibility criterion for property investments. Almost any investor, resident or overseas, is eligible to buy luxury properties in Dubai.
There are a variety of finance packages offered by most of the developers for those on the lookout for different home financing options. If you want, literally, the best in this regard then Tamweel is your best bet. They come with quite a few different products. They finance both under construction properties and the ones that are ready for move-in.
Generally, a 10% deposit of your purchase price is needed while you sign the contract for any new development. After that, you have to make stage payments regularly until completion.
It’s not necessary for property buyers to have an account in a local bank for arranging purchases.
With property prices growing considerably, the trend is expected to continue for some time. You can observe that by making a small comparison of current property prices in an area with the ones from 6 months earlier. Keep in mind, however, that the property prices can also move up and down like any other investments.
Here is the information worth considering when you are buying in Resale Market or Secondary Market:
When during the construction of property another party shows its interest in buying it, the process can be pretty straight forward.
The owner gets an agreed sum of money including the payments made by the owner to developer already as well as the premium that the owner might apply.
The contracts have to be exchanged with the owner at the head office of the developers inside two weeks.
After that, the developer charges a certain percentage of original property price and it’s usually anywhere between 2% and 7%. This is for reissuing the PSA putting the name of the new owner on it as well as updating the title records. It should be done with an authorized representative of the buyer or in person. It will only take minutes to complete and not more.
The contract is re-issued with the name of the new buyer, and there isn’t any legal representation required, and there are no stamp duty implications either.
After that, the buyer will keep on paying remaining installments to the developer as the PSA highlights. There is a 2% – 3% commission that must be paid to the agent. The buyer has to pay the fee for such transfers.
What Are Freehold Properties In Dubai?
Buying freehold properties in Dubai means you’ll own the property for life or until you’ve decided to sell it further out. This property can be passed on to the family as well with them enjoying the same ownership privileges as you.
The best thing for the investors here is that they’ll be guaranteed the resale rights and also the freedom of renting the property out to any third party. Remember, however, that some restrictions are in place for the individual developments.
It is also important to note down that even though these are the freehold properties, there are some conditions applied to the owners as well. These conditions put a restriction on what the owners may be able to do with the properties. It is to ensure that the properties meet a certain set of standards as far as the quality and themes of the development communities are concerned.
Where Are Freehold Properties Available?
Most of the developers across Dubai sell freehold properties. However, most of these developments are restricted to Jumeirah and Sheikh Zayed Road only. Some exceptions, however, include Emaar Towers and Arabian Ranches.
Those investing in Dubai are now granted residence visa. With this visa, the buyers will be able to live in Dubai, but they may not be able to work here.
So, with all this information now available, you’re set to invest in the property market in Dubai. Make sure that you choose the right properties to invest in and make the most lucrative deals.