Dubai Real Estate Buyer’s Guide: Buying Your First Property in the UAE
Real Estate Specialists in Dubai offer Advice to First-Time Home Buyers Considering a Real Estate Investment.
There are several factors to take into account for first-time purchasers who want to invest in UAE real estate, particularly in Dubai. It can be difficult to know where to begin because of the various property kinds that are available and the distinctive market circumstances in each emirate.
Investors from all over the world are keen to purchase property in the UAE as the real estate market continues to boom, particularly in Dubai. Nevertheless, it is essential to make sure your choice is strategic given that home prices have reached a 2016 top and show no signs of slowing down, some neighbourhoods are seeing extraordinary price increase, while other, less well-known areas offer significant potential for appreciation.
Here is a detailed advice on what first-time purchasers should take into account to receive the highest return on investment, based on interviews with experts.
Recognising the real estate market in the UAE
“First-time purchasers intending to invest in the UAE should concentrate on their long-term goals. Callum Radford, Sales Manager, Residential Brokerage, at Colliers MENA, stated that understanding variables such property location, future development plans for the area, and closeness to necessary facilities should play a significant role in the selection.
The real estate market in the United Arab Emirates is incredibly distinctive, distinguished by a wide range of property options in the prime and mid-market segments and the assurance of large returns on investment. Each of the seven emirates has a unique real estate market that appeals to a variety of buyer types by providing a wide range of property types in various price ranges and neighbourhoods.
The UAE’s real estate market, like that of every other nation, is tightly entwined with broader market forces, thus it can change quickly. Therefore, it is crucial for potential purchasers to carefully follow market movements. This watchfulness is necessary to make sure they invest in real estate wisely, capturing the perfect opportunity to buy properties in the ideal places and maximising the return on their investment.
“Its allure is enhanced by well-known sites, attractions, and transportation accessibility. High-end dining, shopping, and services set it apart even further, making life there unlike everywhere else in the area.
Best residential areas in Dubai for great returns
Jumeirah Village Circle in Dubai is one of the most well-liked neighbourhoods in the city.
Jumeirah Village Circle in Dubai is one of the most well-liked neighbourhoods in the city.
Due to its global appeal and ongoing development, Dubai has consistently led in terms of ROI; trends that have only grown more pronounced in the wake of the pandemic as the UAE government introduced new and more flexible visa options for retirees, entrepreneurs, artists, and investors, among other categories.
The most well-known neighbourhoods in Dubai, like Palm Jumeirah, Downtown Dubai, and Dubai Marina, may be familiar to those considering to purchase real estate there. Due to their popularity with both visitors and locals, these neighbourhoods, in Radford’s opinion, have demonstrated a very significant return on investment.
While Palm Jumeirah and Downtown Dubai are more on the upscale side of the city’s real estate options, there are also rising mid-market neighbourhoods that purchasers may want to take into account. You can read more about a specific land in Palm Jumeirah sold for 52 million for a deeper understanding of the upscale market.
Emerging neighbourhoods with low purchase prices and high rental demand, such Arjan and Jumeirah Village Circle, are displaying a substantially higher return each month. Areas nearby that provide modern amenities and infrastructure at more affordable prices are particularly appealing to prospective investors, according to Radford.
Jumeirah Village South is one of the places with the highest growth rates for investment in the middle-tier housing category, according real estate consultancy Coldwell Banker UAE.
Depending on the size of the property, studio apartments can cost anywhere between AED 450,000 and AED 600,000, while one-bedroom apartments can cost anywhere between AED 600,000 and AED 1 million. Additionally, there are two-bedroom flats between AED 1.2 and 1.8 million.
The gross yield for investors in this area has the potential to reach 7.5%. Due to its superior connectivity, advantageous location, continuous hotel construction, the inauguration of the Circle Mall, and a number of additional services, as well as food and beverage alternatives, the neighbourhood is becoming more and more well-known.
But Tilal al Ghaf, a Majid al Futtaim Properties neighbourhood with “significant potential for both rental returns and capital appreciation,” is the agency’s top pick in the city, according to Coldwell Banker’s Managing Director, Ayman Youssef.
Three-bedroom townhouses in this neighbourhood typically cost roughly AED 2.7 million, while four-bedroom apartments cost AED 3.6 million. Standard townhomes and island mansions can be found in the area, with values that can approach AED 100 million.
“Investing in the UAE real estate market necessitates a combination of study, expert advice, and, most importantly, market confidence. It is always essential for first-time purchasers to get advice from industry professionals, whether it is for home viewings, legal requirements and costs, or comprehending market dynamics, added Radford.
Buyers should always take into account supplemental costs, such as maintenance fees and service charges, as these can occasionally come as a surprise to buyers and may have an impact on their Net ROI.”
Choosing an option
Youssef suggests the following step-by-step instructions for first-time buyers:
1. Analysis: Start by doing some research on the possibilities that are accessible, such as ready properties or unfinished projects. Establishing a budget and doing extensive research on the properties’ units, costs, and other expenses is crucial. A mortgage or cash purchase of the home should be given some thought.
2. Hire a broker: It is suggested that a first-time buyer hire a trustworthy broker. A broker can offer information on different types of properties, give unbiased counsel, and help with the buying process.
3. Viewings and decision-making: Participate in property viewings, respond to any questions or concerns, and go to open houses. Make an offer after selecting a property.
4. Form B: Use the buyer’s agreement (Form B) when selecting a broker on the Dubai REST App.
5. Sign the F contract and pay the deposit: Sign Form F, a memorandum of understanding specifying the negotiated price and broker’s compensation between the buyer and seller. Place a monetary deposit, usually equal to 10% of the purchase price, to seal the contract.
6. NOC: The developer will draught a No Objection Certificate (NOC) when the contract is signed, attesting that all fees have been paid and that they have no objections to the transaction.
7. Ownership transfer: After receiving the NOC, the ownership transfer procedure is started. The Dubai Land Department (DLD) accepts the ownership transfer after payment is confirmed. By signing a transfer form, the buyer and seller transfer legal ownership of the property.
8. Handover: Finish any unfinished business, connect utilities, and settle service fees. The buyer receives the title deed, proving their ownership of the property.
Given that the regulatory framework is set up to protect the interests of purchasers, investing in Dubai’s market can be a fantastic chance for investors to maximise their investment.
The year for real estate transactions in Dubai is currently extraordinary. According to Property Finder, the city’s transaction volume increased by 43% in August compared to the same month last year.