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Home / Features / Getting into Global Real Estate: How to Help Your Clients Buy Property in Dubai
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Getting into Global Real Estate: How to Help Your Clients Buy Property in Dubai

In 2016, after the passage of foreign property ownership law, there was an increase in the number of foreign investors in Dubai. 20 percent of the property buyers were Europeans, while 40 percent were Asians. The Iranians were 12 percent, and the UAE nationals were 28 percent. On February 3, 2019, the government introduced a new long-term residence visa system for foreign investors.

It allows foreign investors to live, study, and work in Dubai without the need for a national sponsor. It also helps them enjoy complete ownership of their businesses.
However, to get this visa, an investor should invest between $1.36 million to $2.76 million of their own money in property.
But how does an investor get to buy property in Dubai?

The Reason Behind Making a Purchase
If you are helping a potential buyer to secure property in Dubai, you first need to understand the reason behind the purchase. Is it for investment purposes, or is the buyer looking for a live-in house?
If the buyer is looking for property to rent out, you should do extensive research on the types of properties that can yield the highest rental returns. Look through property websites that have an IDX tool. This tool helps to increase the accuracy of the data you receive.

Get Help with the House Hunting
When purchasing property in Dubai, it is best to get the services of a real estate agent or deal directly with a developer.
However, before you can get into any contractual agreements, you need to perform extensive background checks on the reliability and reputation of either party. You can then choose the one that appears to have the highest level of integrity.
Property developers often deal with houses that have not begun construction. If you choose to deal with a developer, you should attend the home presentation centers to get a general idea of the property they intend to develop.

The Purchasing Process
For a buyer to purchase property in Dubai, they need to be above the age of 21. Once the buyer determines the property they want, they can then make a verbal offer to the seller.
If the seller agrees to the offer, they can draft a formal sales contract and present it to the buyer. If the two parties are in agreement over the sales contract, the buyer will then make a deposit.
While the buyer sources for funds, the seller ensures that the property meets all the stipulations in the contract. The buyer makes the final payment, and the seller transfers the deed of the property to the buyer.

Buying an Off-plan Property
When purchasing a property from a developer, you need to submit a copy of your passport together with a reservation form.
The reservation form details the personal details of both the buyer and seller, the terms and conditions of the sale, and the plan of payment. The buyer then pays a deposit between 5 to 15 percent so that they can receive a formal sale and purchase agreement.
The sales and purchase agreement helps to bind both the buyer and the seller to the deal. You may find developers that require a reservation deposit of up to 20 percent before the drafting of the sales agreement.
You should, therefore, ensure that the parties come into an agreement and sign the sales and purchase document at an early stage.

How to Get a Mortgage in Dubai
For you to get a mortgage in Dubai as an expatriate, you have to deal with many red tapes and paperwork. It is especially more cumbersome than you would if you were to buy in your home country.
This was not the case before the market crash of 2008. Then, it was effortless for an investor to receive a mortgage from a bank in Dubai, provided they had a high credit rating.
The banks would offer mortgages covering close to 90 percent of the total property value. After the recession, the banks had to put their lending procedures on a leash.
Today, if you want to get a mortgage, you will first have to pay at least 20 to 50 percent of the property value in cash.
Some lenders may require you to offer them property collateral before they can agree to any deal. The strictness in lending is mainly due to the instability of the area.

Payment of Fees and Taxes
When buying property in Dubai, there are several fees and taxes that a buyer needs to settle. These include land registration fees, legal fees, maintenance fees, and developer fees or real estate agent fees.
If they are purchasing a new development, the land registration fees may be up to 2 percent. The maintenance fee, on the other hand, can be fixed depending on the property. The costs of large properties can be significantly high.

Why You Should Buy Property in Dubai
When living in Dubai, you have to meet some costly demands, with rent being by far the largest. The rent of an apartment accounts for roughly 40 percent of the monthly income of a resident.
Therefore, if you are looking for a good investment opportunity, you should consider purchasing a property and renting it out.
Additionally, buying a property to stay in is better than renting a property. Apart from the high rental costs being discouraging, the installments on house mortgages that banks offer are lower than the monthly rent.
Even when there is an increase in rent, the mortgage installments stay the same. When you consider the cost of a property for 20 years, it is cheaper to buy than to rent.

Choosing the Right Property to Buy
When choosing a property to buy in Dubai, you should consider getting a property in a small residential mid-income community. A mid-income community offers you security.
When the economy is steady, people tend to move from low-end to mid-end communities. When the economy gets bad, those from the high-end communities migrate to the mid-end communities.



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