10 things you need to know before buying real estate in the UAE.

The UAE real estate market has successfully recovered from the COVID-19 pandemic thanks to economic supportive measures and government initiatives such as residency permits for retirees and remote workers, and the expansion of the 10-year golden visa program. Real estate transactions in Dubai more than doubled last year and broke a 12-year record for transaction volume. Last year, 61,241 transactions worth Dh151.07 billion ($41.13 billion) were recorded, compared with transactions worth Dh71.87 billion in 2020. That made 2021 the best year by deal volume since the start of 2013 and the most significant by value since 2009, according to the Property Finder portal.

'Activity in the Dubai market has been further fueled''the excellent value that the market continues to offer compared to other global destinations,' says Richard Weind, group chief executive of Better Homes. "Now is a great time to buy real estate in Dubai. The growing population and strengthening economy are pushing the Dubai real estate market to new heights. We are seeing many domestic and international buyers entering the market for the first time. "

We turned to experts to compile a list of things you need to know before buying real estate in the UAE.

Define your goal

Before investing in real estate, buyers need to clearly define their purpose of buying as this will help them determine the type of property to buy. Ayman Youssef,''vice president of real estate company Coldwell Banker UAE, says: "Ask yourself questions such as: will you use the property or invest; what is the time horizon of the investment; what returns do you expect? The answers to these questions will enable you to decide on factors such as ready or planned properties, choice of neighborhood, amount of investment and others. "

Do your research

Before buying real estate, it's important to thoroughly research and evaluate the market. "Consider all factors. What kind of rental yield can you expect from the property? Is there demand for the neighborhood and will there be in the future?

Operating costs

When researching and looking for different real estate options in the UAE, always check the operating costs, says Ayman Yousef. This includes utilities and maintenance costs, which will vary depending on the type of property purchased.

Work with a licensed broker

Buyers should work with a reliable and competent broker who specializes in the market segment in''where they are looking for real estate to ensure that their rights and investments are protected. When choosing an agent you trust with your property search, make sure they are certified by the Real Estate Regulatory Agency (RERA), advises Lewis Allsopp. Ask for their broker registration number (BRN) to check certification.

Understand the buying process

You need to fully understand the process of selling real estate in Dubai from start to finish. Ask your broker to walk you through all the steps from making an offer to the negotiation process, the required documents, obtaining a no protest certificate, scheduling an appointment for handover and delivery of the property. Make sure you understand the system accurately so that you can make informed decisions''at every stage.

What is the mortgage capital?

Buyers with mortgages in the UAE currently enjoy favorable mortgage interest rates, but they should be aware of the loan-to-value ratio limit, often referred to as mortgage capital, of 80% for first-time buyers set by the UAE Central Bank. This means that a first-time buyer will need a minimum down payment of 20%, and for those buying a second home or property worth more than AED5 million, the figure will be 40%.

To claim benefits from developers

The UAE developers are currently offering good benefits on purchase''real estate, according to Paul Christodoulou. "You can get residency and business licenses with some investments, as well as attractive payment plans and guaranteed investment returns, among other benefits. You can also opt for fractional ownership lately," he says.

Plan your selling scenario

Whatever your reason for buying a property, always have a selling scenario in mind, advises Ayman Yousef. Study current trends in the real estate market and pay attention to neighborhoods that are thriving as well as newly emerging communities. It's also worth paying attention to amenities, as these factors will determine a property's resale value.