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Buying Property in Dubai Top 10 Tips

property in Dubai

The Ultimate Guide to Buying Property in Dubai


Welcome to the world-class city of Dubai for real estate and investment! In the same manner, it has become a popular hub for homeowners because it offers an extravagant lifestyle and a vibrant art community. Buying a house or an apartment involves several bureaucratic formalities, fiscal operations, and legal formalities that vary in different countries and can be quite stressful. But it may not be very easy if you are not so well informed as to how to go about buying properties for sale in Dubai. Below is our simplified 10-step guide of how to buy property in Dubai to assist any person hoping to invest in property in the city.

Set a Budget & Choose a Location

The absolute first and one of the most crucial steps in the creation of the design is to define the budget. In any transfer case especially if you are a cash buyer, further steps require confirmation that the cash is available in the UAE. To get this, the price of the property, a 4% transfer duty fee, 2% agent commission, and interest on the mortgage (about 3-4%) needed to be added. When you set a budget, think of the many places in Dubai that would interest you as your living quarters after settling for a specific budget. Before you go ahead to explore this topic, it should be useful to remind my audience of a fact I knew when researching for my first article; You don’t get every property in Dubai with a foreign passport. These regions are seen as being ‘freehold’ such as Downtown.

Get a Mortgage to Buy Property in Dubai

A mortgage is something people need when they need a home, therefore, to get a good mortgage one needs to consult a reliable mortgage professional. They can also arrange a preapproval from the bank so you are only able to spend a certain amount of money. Make sure you know that when purchasing a property for less than AED 5 million of value, a down payment of 20% is compulsory for issuing mortgage approval for the purchase of real estate in the United Arab Emirates. For rental units that are more than AED 5 million, the tenant must pay an initial amount of not less than 30 percent of the value of the building as a security deposit.

Find a Qualified Broker

Once you have set your budget then search for a proficient broker who is recognized by the RERA to get the right resemblance or investment property (as you can request to see the previous clients). The prospective home buyer needs to understand the following features; A real estate agent in Dubai who is trained to take and pass the Real Estate Regulatory Authority (RERA) certification is referred to as an RERA-qualified broker. The official written contract for offer negotiating representation is known as a Form B and must be signed by both parties involved. It is also worth knowing that DLD allows checking an agent’s credentials for free. Brokers can be searched alphabetically by name or company name, or using Base Registration Number (BRN) and this can be done either on their website or through a mobile application known as the “Dubai Brokers App”.

Make an Offer

Upon identifying the ideal home and being ready to make the offer, reduce the complexity of the offer by applying for mortgage preapproval as well as bringing with you a 10 %-unit deposit. Traditionally, the agent will retain this deposit for an agreed amount of time or until the actual sale is made.


Pay the Deposit

After setting the price, the parties will move forward and enter into a formal Memorandum of Understanding (MOU) also referred to as RERA’s Form F. Details of the understanding of the parties regarding the terms and conditions of the whole agreement, including the definitive period up to the date of the transfer of the Property, as well as the amount of rent paid and other service charges outstanding, have to be captured under the Memorandum of Understanding. However, to prevent a scenario in which the seller does not accept the Dubai Brokers App, you must provide the seller with a current dated check of 10% of the total cost of an apartment. Moreover, a commission check post-dated and written to the specific brokerage being used is also needed at this stage.

Obtain the NOC

In the event the property was developed by a developer, the seller requires NOC from the said developer before the sale can be completed. This ensures that there are no hidden charges that have been incurred as a result of some service provided by a particular property.

Block the Property

If the house that you want to buy has a mortgage, you have to undergo a “blocking” process. The seller needs to visit the Dubai Land Department (DLD) where he/she will need to “block” the property after presenting a responsibility letter from the bank. Four checks are used to do this: One would be to the seller’s bank for the balance owed on the mortgage; the second to the seller for the remainder of the purchase price; the third, to DLD as the 4% transfer fee; a fourth, to the manager of the agency. A manager’s check is of course a check that the bank provides to the person who bought it, which is essentially an endorsed and guaranteed check.

Transfer the Property

When you sign the official papers, known as the transfer documents, you will be in the broker’s office together with the seller and your conveyancer. Do not forget to carry the manager’s checks or cash because these are the only ways of payment allowed when purchasing property in Dubai. The check for the 4% transfer charge for DLD must be presented. You will also be given the property key & access cards along with the new title deeds after the transfer is completed and recorded with the DLD. For further particulars on the steps and expenses that go with acquiring properties in Dubai.

Congratulations and Final Steps

You have just bought your own house! Finally, ensure that all the utilities like gas, water, electricity, and even the air conditioning are billed and in your name.

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