How to Buy a Property in Dubai – A Complete Guide
If you are looking to invest in a property in Dubai then there are a plethora of options to consider. Dubai government has introduced several rules that ease the property booking process. From offering designated free-hold properties to easy taxation policy there are a range of factors that make Dubai one of the preferred property destinations in the world. In this article, we have prescribed a detailed guide that will help your property investment in the city.
Can Indian Nationals Buy a Property in Dubai?
Yes, Indian nationals are allowed to buy a property in Dubai in legal terms. As per the Foreign Exchange Management Act (FEMA) was launched in 1989, Indian residents are allowed to buy properties. As per the Liberalised Remittance Scheme (LRS), the residents can invest upto $250,000 for properties invested abroad.
Further, the Dubai government has also launched golden visas to increase the footfall of investors in the real estate markets. As per the new rules, the investors who invest in properties worth two million Dirhams will be offered a 10-year visa to stay in Dubai.
Where do most Indians invest in Dubai?
Out of all the foreign investors, the maximum number of investors are from India. Some of the popular areas like Dubai Marina, Downtown Dubai and Jumeirah Lake Towers have become favourite destinations for Indians. Whereas, Palm Jumeirah, Dubai Hills Estate and Jumeirah Village Circle have a wide array of investment options for luxury villas in Dubai. Whereas, Dubai Silicon Oasis and International City are other micro markets that offer better returns on their investments.
How to Buy a Property in Dubai?
- Determine Your Budget
Decide on your budget for purchasing property in Dubai. The properties here are high-end and can cost a whooping amount. Hence, it is advisable to consider the property value along with additional costs such as agent fees, registration fees, and maintenance. If the value is overriding your budget then you can explore financing options, including mortgages from Indian or UAE-based banks.
- Research the Dubai Property Market
Conduct thorough research on the Dubai property market on your own. You can also take the help of agents to get a clear picture of the different areas available for buying. When making a property investment, do not forget to consider any legal restrictions or requirements for Indian residents.
- Choose the Right Location
Dubai has a fixed policy for expats willing to invest in the city. There are a range of locations that are free-hold properties designed especially for foreign investment. However, when selecting a location in Dubai that aligns with your lifestyle and preferences. Consider factors like proximity to work, schools, and amenities.
- Select the Type of Property
Decide on the type of property you wish to buy, whether it’s an apartment, villa, commercial space, or land. When choosing go through the total cost, property type and legal aspects related to the same. Also, check for the ROI and investment value of the area.
- Engage a Real Estate Agent
Work with a licensed and reputable real estate agent with knowledge of the Dubai property market. You should check their portfolio before proceeding to avoid any forgery. Ensure they understand the specific requirements for Indian buyers.
- Sign a Memorandum of Understanding (MoU)
Signing the MOU is one of the crucial steps that you have to follow when investing in property in Dubai. It is advisable to get the MOU cross-checked by your attorney to avoid any misunderstanding or forgery related to legal terms and rules.
- Pay the Initial Deposit
After signing the MoU, you’ll be required to pay an initial deposit, usually around 10% of the property’s purchase price, to secure the property.
- Conduct Due Diligence and Formal Agreement
Perform due diligence to verify the property’s legal status, ownership, and any outstanding debts. Once you are satisfied, a formal Sales and Purchase Agreement (SPA) is drafted, specifying the purchase price, payment schedule, and the date of ownership transfer.
Things to Keep in Mind to Buy a Property in Dubai
- Budget and Financing
Determine your budget for the property purchase and understand the various financing options available. Consider factors like down payment, mortgage interest rates, and associated costs like property taxes, maintenance fees, and insurance.
- Location
Dubai is a diverse city with various neighbourhoods, each offering a different lifestyle and amenities. Choose a location that suits your preferences in terms of accessibility, proximity to work, schools, and recreational facilities.
- Property Type
Decide on the type of property that best fits your needs. Dubai offers a wide range of options, from apartments and villas to townhouses and luxury penthouses. Consider the size of the property, the number of bedrooms, and any specific features you desire.
- Developer Reputation
Research the reputation of the property developer. Dubai has many reputable developers, but it’s essential to ensure that the one you choose has a track record of delivering quality projects on time. Reading reviews and checking their previous developments can provide insights.
- Regulations and Legal Aspects
Familiarize yourself with Dubai’s real estate regulations and legal requirements for property ownership, including registration, fees, and documentation. It’s advisable to consult with a local real estate expert or attorney to navigate these legal aspects.
- Future Growth and Resale Value
Consider the potential for future growth and resale value of the property. Dubai’s real estate market can be dynamic, and it’s crucial to invest in an area with good growth prospects, as this can impact your investment’s long-term value.
FAQs
1. What are the steps to buying property in Dubai?
You have to begin by researching about the property and engage with a real estate agent.
2. Can you own 100% property in Dubai?
Yes, if you are investing in a freehold property then you are allowed to hold it.
3. How Indian can buy property in Dubai?
If you are an Indian then you will have to get your deal approved by the Dubai Land Department.
4. Can I stay in Dubai if I buy a property?
After completing the purchase, you can apply for a resident visa in Dubai.
5. Can I get residency in Dubai if I buy a house?
Yes, it is possible that you can get residency in Dubai after buying a house only if you comply with the legal rules.
