It is relatively low-risk to buy property in Dubai whilst residing abroad. With thousands of foreign investors entering the property market every month, Dubai has systems in place to cater to property buyers who may not have the time or ability to be present for the transaction. Though the laws governing funds entering the UAE are considered lenient, the laws that protect investments and the procedures of purchasing property are stringent. That being said, there are some things to keep in mind before beginning the process of investing in Dubai.
Find a Reputable Real Estate Company
Due to the minimal restrictions associated with starting a business in Dubai, there are cases of agencies forming with little to no experience in the proper handling of foreign investments. Poor management of funds, inadvertent purchases of incorrect property and incorrectly filed paperwork are common issues with inexperienced brokers. The best way to qualify a real estate agency is to first check if they are registered, and in good standing, with the Real Estate Regulatory Authority of Dubai (RERA). Secondly, take a few minutes to speak with a representative at that company to discuss your options. If the rep seems inexperienced or unable to immediately and clearly answer your questions, consider this a red flag.
Buy Property in Dubai But Do Not Overpay
Although investors have the option to go directly to a developer for their investment needs, it is typically far more efficient and stress-free to have a real estate company manage all of the complex aspects of a deal. For investment properties coming directly from the developer, an investor should only pay the actual price of the property in addition to any government fees required to buy property in Dubai. Find a real estate agency which does not charge a brokerage fee for off-plan purchases. Many times, a broker will take their fees directly from the developer.
Review all Contracts and Paperwork
An investor must ensure the cost quoted by the agent is equivalent to the actual cost stated by the developer. When buying off-plan, the buyer must also ensure that the plot chosen from the master plan is the same plot referenced in the contracts. Since foreign investors may not be available to view their plot to confirm its location, it is recommended that they request their agent to ensure consistency between the real property and the subject of purchase on the contract.
Do Not Make a Property Purchase without Consulting a Property Professional in Dubai
Not being familiar with Dubai’s residential landscape may leave investors open to common pitfalls when trying to make informed investment decisions. For this reason, it is advised that all investors wishing to purchase an investment property in Dubai seek the consult of property professionals who understand the nuances of the regional property market, as well as a firm understanding of external influences, which may affect the future health of an investment. As the UAE is a complex market, the same indicators which identify a good investment in New York or London, may not be as representative when making an investment decision in this region.
For property consultation, or to discuss property investment options in Dubai, you may contact Zola Group, a leader in real estate and business consultation services in Dubai.
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