How to choose the right real estate in the UAE: tips and recommendations

Choosing real estate in the UAE

When choosing real estate in the United Arab Emirates (UAE), you need to clearly define your priorities. It is important to decide whether you will be using the apartment for living or considering it as a business property. This choice will influence your decision on which emirate to look for suitable options. Dubai, being the largest and most developed city in the country, is the main market for residential and commercial real estate in the UAE. However, other emirates such as Ras Al Khaimah, Sharjah, Ajman and Abu Dhabi can offer interesting and profitable options.

The process of buying real estate

The procedure for buying real estate in these regions is similar, regardless of the location. If your goal is to rent out your home, keep in mind that there is no need to focus only on the most expensive properties. In the Dubai market, there are areas where rental income will be higher than in the prestigious areas, while the cost of maintaining such properties can be much lower.

Addressing professionals

Contacting professionals with in-depth knowledge of the UAEreal estate market can be extremely beneficial. These are professionals who have extensive experience and knowledge of local legal regulations, cultural background and market trends.

Selecting a company for the transaction

Selecting a company to support your transaction is an important step that requires careful due diligence. Use the resources available online to find information about realtors and developers, including client testimonials and social media pages. If you plan to work with a legal entity, it is worth verifying its reputation by requesting relevant documents, such as minutes of board meetings. Recommendations from people you know who have already bought property in the UAE will also be very useful.

Risks of making the wrong choice

Choosing the wrong partner can lead to negative consequences:

• Buyers may encounter unreliable offers from dubious intermediaries.
• There is a risk of overpaying twice as much for such apartments.

A professional broker will help you find a reliable builder and achieve significant discounts in both primary and secondary housing markets.

Property rights to real estate

When dealing with real estate ownership in the UAE, you need to be aware of the differences between the two main types:leasehold(long-term lease) andfreehold(full ownership for up to 999 years). The majority of freehold properties are located in Dubai, while in Ajman there are few of them, and in other emirates such property is practically absent. That is why it is important to carefully study all documentation related to the property and understand its legal status in order to avoid all possible problems in the future.

Preparing to buyreal estate in the UAE

Preparing to buyreal estate in the United Arab Emirates requires careful consideration and an understanding of your own preferences. If you have enough time and opportunities, it makes sense to think about regular trips to the country. By spending time in different regions, you will be able to more objectively assess your tastes and preferences, which in turn will help you make better choices in the future.

If you are planning to buy a home, but are not going to live in it for at least two or three months of the year, it can be quite a burden, as it will require additional costs to maintain the property. In such a situation, it is worth considering renting to avoid additional worries.

Pre-purchase financial analysis

If your intention is to use your home for permanent residence or business, you need to carefully analyze your finances and personal preferences. The process of acquiring real estate in the UAE may require you to prepare a sum of approx.11-12%of the total value of the object, including all taxes and fees, but without taking into account additional services of agents who can offer you assistance in finding particularly favorable offers for a separate fee.

Legal protection

Once all the necessary paperwork has been completed, your rights and interests will be protected by the company you choose or by lawyers familiar with local law. In addition, you can make a list of requirements for the contract in advance and give it to your real estate agent.

This procedure is relevant both for transactions with individuals and commercial enterprises. If you are interested in buying real estate in a project under construction, you will only need a foreign passport, and realtors will help you prepare all the documents in English.

Opening a bank account

The next important step is to open a bank account in the UAE, as it is necessary for both new construction and secondary housing. It is important to note that not all banks provide services for non-residents, which can create certain difficulties. In such cases, it is worth contacting a broker who will help you find a suitable bank or organize payment through a government agency dealing with such operations.

Keep in mind that there may be a significant fee for this.

Purchase of secondary housing

When purchasing a secondary residence, a deposit is required, which ranges from5 to 10%of the total price of the apartment.

Initial steps to buying real estate

To begin the process of purchasing real estate, the key step is to open a personal bank account and issue a check for the required amount. This check must be presented when registering the transaction at the local land office, where there is a designated area for such transactions.

The whole procedure is quite clear and quick if an experienced realtor is involved. The terms of subsequent payments can vary significantly depending on the developer in the United Arab Emirates. There are various variants of schemes, for example, the possibility of paying 40-80% of the final cost of housing at a stage when the construction is nearing completion. Programs with partial payment for two to five years upon completion of construction can also be offered. Moreover, some developers offer apartments that are ready for occupancy with installment payments for up to seven years.

Contract conclusion

Next, a contract is signed, in which all the main parameters of the transaction are fixed. This document is first signed by the buyer and then by the seller, and it should be noted that once signed, the deposit becomes non-refundable. If the buyer decides to cancel the purchase, he/she risks losing the deposit, as at this point the apartment is already considered to be off the market.

According to the established rules, the seller is obliged to provide a warranty check, held in the name of the buyer, in case the transaction is canceled, but this practice is not always realized in practice.

Stages of transfer of ownership

Once the contract is finalized, the broker receives all the required documents for the transfer from the developer. Once these papers are collected, it is on to the transfer stage, where all financial settlements of the transaction take place. During this process, the buyer receives the certificate of ownership of the property, as well as the keys or copies of the lease agreements if the property is for rent.

Accounting for expenses on purchase of objects under construction

When investing in housing under construction, it is important to consider the costs of registering the transaction. The buyer must pay a registration fee to the Land Department, which is as follows4%of the total value of the property, as well as minor certificate feesOqood.

In the case of purchase of completed properties or secondary dwellings, the following will also be required4%for registration with the land office upon receipt of the certificate of title, and additional costs may amount to approx.1,000 dollars..

Expenses on the secondary market

In the secondary market, costs depend on the agreement between the buyer and seller, but generally the buyer is responsible for the trustee's office fees that handle the transfer. These costs can range from:

• 2100 dirhams(approx.$570.)
• 5250 dirhams(which amounts to approx.$1,430.)

depending on the type of property.

Commission of real estate agencies

Realtor agency commissions are paid only on secondary market purchases and are as follows2%of the total amount of the transaction. In the case of new buildings, the cost of realtor services for the buyer is not included in the costs, and additional financial costs are not required in this case.

Conclusion

To conclude this article, I would like to emphasize that buying real estate in the United Arab Emirates is not just a financial investment, but an important step that requires a thoughtful approach and careful preparation. Before making a choice, it is crucial to define your goal - whether it is personal use or business organization. From a market perspective,Dubairemains a key player, but other emirates such asRas Al KhaimahandSharjah, are also worth considering, especially for those looking for better options.

Types of real estate ownership

It's also important to keep in mind the differences between types of ownership -freeholdandleasehold. Each has unique features and limitations that should be thoroughly understood before making a purchase decision. Of course, it is best to consult with experienced professionals who are familiar with local regulations and can help avoid mistakes that lead to financial loss.

The process of buying real estate

Preparing for a purchase, completing paperwork and opening an account can take time and attention, but these steps are critical to a successful transaction. The importance of transparency and reliability cannot be overemphasized when selecting a company to work with to avoid situations with unscrupulous intermediaries that can lead to significant losses.

Recommendations for buying real estate

• Determine your purpose of purchase: personal use or business.
• Explore the markets of different emirates to find the best option.
• Understand the differences between freehold and leasehold.
• Consult with professionals who know the local laws.
• Carefully choose a company to handle the transaction.

By following all of the above recommendations and exercising caution, you can greatly simplify the process and make the purchase of real estate in the UAE not only successful, but also as profitable as possible. I hope that this article will help you on this exciting journey and you will be able to make informed decisions to achieve your goals in the Emirati real estate market.