Dubai ranks among the top cities in the world for its high quality of life. It is a perfectly designed city with immaculately paved roads, amenities, recreational facilities, transport, healthcare, and overall infrastructure.
The city’s real estate also flourishes primarily because of those very reasons. Data shows that Dubai’s real estate market touched 22.7 billion AED in June 2022, the highest in the last 13 years. Downtown Dubai, Jumeirah Golf Estates, and Dubai Marina are the most sought-after areas for property purchasing.
Undoubtedly, it’s an excellent time to buy an apartment in Dubai, not just as a house but as an investment. However, rather than purchasing a home yourself, hiring a property brokerage firm with the knowledge, expertise, and experience will help you find a property suited to your requirements.
But before you contact them, here is some information regarding this topic you will find helpful.
Factors to consider when buying a house
Since buying a house is a considerable investment, you should consider various factors while purchasing a property.
Location
Dubai has some of the best locations in the world, and you cannot grasp their magnificence before you face them. It is home to engineering marvels like the Burj Khalifa, The Dubai Fountain, and Palm Jumeirah, besides other futuristic-looking buildings that comprise its skyline.
Some of the best neighborhoods in Dubai where you might consider buying an apartment are Dubai Media City, Marina, Jumeirah Village Triangle, Emirates Hills, and Sports City. Buying a house in a good location increases its value immediately.
Amenities
You must ask the property brokerage firm about the amenities available inside the apartment and those to be shared by its residents.
In most apartments across Dubai, you will find basic amenities like fully fitted kitchens, well-equipped bathrooms, parking, built-in wardrobes, private balconies, and central air conditioning.
The shared amenities you must look for are a swimming pool, basement and covered parking, steam room, gymnasium, professionally landscaped gardens, gazebo, and entertaining outdoor areas.
The bedroom is another area you should observe carefully, checking whether it is spacious and has a personal balcony for enjoying the panoramic views.
Types of payment plans
Properties in Dubai are expensive, which is why most people prefer to make their payments in installments rather than as a one-time upfront payment. However, builders in Dubai offer various kinds of plans, including 70/30 and 10/90.
In this ratio, the first number denotes the amount you must pay initially or when buying the apartment, while the second is the remaining amount you should pay in installments.
You will also find builders offering post-handover plans, in which you (as the buyer) pay a certain amount to the builder after acquiring the property. Some developers might even be willing to extend the post-handover duration to 3 years.
Hiring a broker will help you understand the intricacies of these plans clearly, and choose one that suits your budgetary requirements.
Is it located in a freehold or leasehold zone?
It is crucial to know the difference between freehold and leasehold zones in Dubai before investing since the Government of Dubai has varying requirements and guidelines for each.
Freehold
In 2001, the government passed laws to make it easier for foreigners to purchase property in certain designated areas. Interestingly, Dubai was one of the first countries in the United Arab Emirates to permit foreigners to buy property in exclusive zones.
Buying a property on a freehold basis in any part of Dubai (including the freehold areas) makes you the complete owner of your house and its land. When the lease term ends, the ownership goes back to the landowner.
Some popular freehold areas amongst foreigners looking to buy property in Dubai are Downtown Dubai, Palm Jumeirah, Dubai Marina, International City, and Town Square. Locals prefer investing in freehold zones like Al Nahda, Al Qusais, Deira, and Silicon Oasis Dubai.
Leasehold
In contrast, a leasehold zone is an area where you enjoy absolute property rights for a fixed time, usually 99 years. But at no point can you claim ownership of the land, which will continue to belong to the government.
What are the service charges?
The real estate laws in Dubai make it compulsory for property owners to pay service charges, which the government determines on a per square foot basis and range between 3 AED to 30 AED. You should also remember that the service charges directly impact your return on investment (ROI).
After extensive research, you should buy an apartment in Dubai, or any property for that matter, taking into account the essential factors like amenities, location, prices, etc. The best way to ensure you find the right property is to hire the services of a brokerage firm in Dubai who are acquainted with all the aspects of the local real estate market.
