A Guide on Freehold Properties in Dubai
Are you considering real estate in Dubai in 2020? Buying a freehold Dubai property is a wise approach to earning more from your investments. Note, however, it can be volatile for the novice. We prepared this guide to help you understand more about freehold properties in Dubai and aspects you should remember before you decide to invest in Dubai real estate market.
Have You Considered Your Budget Yet?
But even before we get into funds, why do you want to buy a home in Dubai in the first place? Do you want a property for your family or business? Answering these questions will enable you to make an informed decision regarding the type of property you want and the location, too.
Conduct Due Diligence on Prospective Property Developers
Do you know the real estate company in Dubai you want to partner with? In the case of the developer, do you know their properties? Is the company registered with RERA? Do they have any legal issues with the government or customers?
Financing Options: What’s At Your Disposal?
How much do you have that you are willing to spend on a property? If you do not have sufficient funds, are you in a position to look for a home loan or mortgage? Consider your finances first before making any major moves such as shopping for a property or contacting a developer. It’s a good idea to have a rough estimate of how much you’d be willing to spend.
A lot of property developers are currently doing away with the 4% registration fees for homebuyers. Payment plans are taking shape now. Schemes like “Money Back” and “Capital Guarantee” are popular slogans in the real estate sector now.
A normal real estate transaction would take up to 30 days, sometimes even more from the sale agreement date, influenced by different factors.
The Procedure of the Transaction
The seller and the property investor must first of all sign a contract based on the stipulations laid out by the government.
After that, both parties sign a Memorandum of Understanding before the buyer pays the down payment, which ranges between 10% - 25%. Another meeting is conducted at the developer’s office where the application for the “No Objection Certificate” is done for the property sale transaction to commence.
After the issuance of the NOC, both the seller and the buyer approach the Dubai Land Department for a formal transfer of ownership. Normally, payment is done in terms of the manager’s cheque on the date of transfer, to the seller. Afterward, the buyer receives a new title deed under their name.
If the property is acquired via a mortgage, then a lender must be involved. If before acquiring the house was on a mortgage, the seller must clear the mortgage amount before they apply for the NOC.
The charges for the NOC ranges from AED500 - AED5000, which belongs to the developer. Most of the time this amount is paid by the seller.
Commission for the Dubai Real Estate Broker
The Agency fee is normally 2% of the selling price of the property.
The transfer fees are usually calculated as 4% of the property value, with admin fees that are not more than AED 5000. These amounts are remitted to the DLD. Additional fees like service charges are remitted to the developer.
As a premier real estate company in Dubai, Aras Real Estate comes in to streamline the real estate transaction process. Get in touch with us today to work with the best real estate Dubai professionals to assist you to make informed decisions regarding real estate.
This is the information that stipulates details about a given population. This is an important consideration that affects freehold property pricing, property types that are in great demand, and trends, generally speaking.
Besides, more projects are anticipated to complete before Expo 2020. The reason behind this logic is to encourage real estate investors to negotiate price rates, consequently affect the value of freehold properties in Dubai.
The real estate market in Dubai is picking up the pieces pretty much fast, even in the middle of a deadly pandemic, the market has record real estate transactions worth billions before the last quarter of 2020. Therefore as a property investor, what are some of the factors you should consider before you invest in the real estate Dubai market?
Firstly, do not buy a property just because it comes with a huge chandelier or large swimming pool— they do not have any effect on the value of the property or the community.
Check on different property finder platforms to see the aggregate price range of freehold properties in Dubai to get a feel of what you’d expect from your prospective property.
Just to brainstorm your mind:
Key factors that shift the value of a property in the Dubai freehold property market are the cost of construction, proximity to social amenities, and facilities such as the metro and bus stations, schools, and hospitals. The location also plays a crucial role in the property pricing factor.
Statistics have shown that Dubai property prices have increased in various communities since 2008. Dubai Marina, for instance, property rates have spiked by 28% since 2010. This is large because of the transport connection of the Dubai Tram and Dubai Metro.
According to RTA, properties that are located within 2 kilometres from the metro stations have increased by 41%. Furthermore, research indicates that one-bedroom and two-bedroom projects are preferable to three and four-bedroom among buyers.
Therefore, before you decide to buy a freehold Dubai property, make sure that you find a good real estate Dubai broker to help you navigate through the process.
Aras Real Estate is one of the leading real estate companies in Dubai. We can help make the process of buying a home in Dubai super easy and stress-free. For any real estate-related questions or concerns, get in touch with the top real estate brokers in Dubai.