Buyer Guide in the UAE: 5 Steps How to Buy

Buying a property in Dubai step by step

So, you’ve made your decision to buy a property in UAE? Whether you are a seasoned investor or a first-time buyer, purchasing a property is one of the complex decision you had to do.

It gets critical depending upon too many factors and gets fiddly due to its tricky clauses in the purchase process. Internet is full of advice, blogs, articles and other information regarding the right purchasing of properties in UAE, but the bad part is that this information gets outdated quickly. Due to the efficient policies of the government, which works fasters then many private channels and laws easily get amended.

Moreover, documentation might look complicated to you if you’re new at this. Today we are going to share some of the most valuable information in different steps which will be most beneficial for you even; if it is your 1st purchase.

The detailed article is not only about the steps involved in purchasing. Tell you how to make a success of each move.

Let’s see,

Getting started in Dubai

The property market at UAE rapidly matured over the past decade. With that maturity, the questions & insecurities also arise. Unlimited robust websites with large numbers of listing with different filters are available.

But, before you invest any money, here are the few things that you’ve must evaluate by yourself.

What to Consider?

– The Community Element

Living with a family? It’s crucial to choose a community that fosters your kid’s development in the early years especially. An area with Parks, Playgrounds, Bike-lanes, swimming pools and other facilities allows your kids to enjoy the real world apart from wasting time on artificial worlds including TVs & smartphones. Infect they get busy with healthy activities.

Communities such as The Meadows, Cbd International City, The Springs, Emirates Hills, and The Jumeirah area in Dubai, while in Abu Dhabi open spaces can be found on Saadiyat Island, Reef Villas, Emirates Crown, and Al-Raha beach.  These planned developments are considered as “Suburbs with plenty of open spaces”.

– Distance to good Schools.

If your kids are school going, consider choosing an area near to decent schools. So, you can send your children to a reputable school with a robust bus system. Now the governments are moving schools & educational centres to the outskirts of cities. That’s why finding a suitable place to live near an academic area one isn’t easy. So, always appraise your decision while keeping the educational needs a valuable factor.

– Traffic

Sometimes, it becomes the cause of stress and frustration! Calculate you’re commute time. Traffic routine becomes a necessary element when you’ve to face it twice daily. The traffic congestion is becoming a severe problem in UAE; Since more and more people are moving to the UAE.

Distance to Mall & Shopping Centers

In UAE’s, malls are almost the answer to everything in domestic life. Households, leisure’s, and culinary needs. Sometimes residents have to visit a mall for a small product. Many residents consider it an inconvenient to visit a mall every time. But somehow few areas like Dubai Marina, Bay Central, Marina Residency are good to go with malls and nightlife.

Listed below are the five most important steps to follow while you’re purchasing any property in UAE,

– Step 1: Setting up Your Budget in Dubai

The most important thing to do before doing anything is to calculate your budget. If your buying with cash then make sure about the right amount.

  • Budget for Deposits & fees: As explained already; The importance of measuring budget constraints, therefore, always allocate budget for small chunks like process fees, VAT, Agents’ commissions, Bank deposits,

  • Services Fees: Once everything is fixed, then “The Service Fee” is an additional cost to consider. Annual maintenance charges to be paid to relevant departments of Emirates-based on RERA Service Changes & Maintenance index. Up-to-dated fee list can be obtain from relevant authorities’ websites and offices.

  • Mortgage Arrangements: Sometimes, if you have the right budget that is well-fitted, arrange some extra. The best thing while buying the property is making “The Mortgage Arrangements”. Buyers have to provide some documents to banks for some paperwork.

Paperwork might include Salary slips, Bank statements, Emirates ID and few other proofs. The process with banks is almost the same in entire emirates. However, the transfer fee might be different.

Here is a list of estimated fees within Abu Dhabi during the purchase process.

Abu Dhabi property fees

Fee type

Fee amount

Abu Dhabi municipality fee

Approximately 5% of the purchase price

Mortgage registration fee

0.1% of purchase price

Real estate agency fee

Typically, 2% of the property value, plus 5% VAT

Bank mortgage arrangement fee

Usually up to 1% of the loan amount, plus 5% VAT

Title deed cost

AED 1,000

Bank property valuation fee

Ranges from AED 2,500 to AED 3,000, plus 5% VAT

Table 1, Source: https://www.mortgagefinder.ae/

And Somehow, it almost takes a week for initial approval for salaried or longer if self-employed.

  • Initial Deposit: To secure purchase, buyers have to pay some deposits. The initial deposit is 10%, payable via cheque. The amount is collected by authorized agents registered under RERA. The broker can hold the property until the complication of a successful transfer.

Tip: “If any mortgage is applied against the desired property, then buyers should demand (NOC) then move towards the title deed for property”.

– Step 2: Finding the Right Agent

When buying any property in either in UAE or anywhere else in the world, the most necessary and initial step to take is to find someone. Someone who’s known as “The Right Agent”. These guys will manage the whole process and have a listing available with an accurate value of a property.

Now, how to find a precise agent? Here are some ways to find the exact person.

  • Ask a friend: If someone within your circle purchased the property already, contact them and discuss the whole purchasing process, and ask for a referral. Typically, friends and other close one’s can give the most honest advice.

  • Online Research: Internet is bursting with tons of online material related to real estates, properties, residential and commercial properties of all size and all areas. Property Websites and agents had listings available to them with actual demanded prices. Therefore, they had the skills to negotiate, and sometimes they can offer you something extra.

Buyers decide in the first eight seconds of seeing a home if they’re interested in buying it. Get out of your car, walk in their shoes and see what they see within the first eight seconds.”

 -Barbara Corcoran, American Businesswomen.

We, at mypropertyz, can connect you with some of the best agents registered with RERA and trained according to clients requirements. Moreover, all the units are evaluated with the best prices around. 

– Step 3: Calculating the Outcomes.

What outcomes do you desire? Finding someone who makes the process easier for you isn’t the only things until you work out on the desire results from the investment in real estate markets. Below are some of the things to plan

  • Right Investment: Your money gets depreciates if its in banks. Other than keeping your investment finger crossed in banks. On the other hand, when invested in real estate, the value of properties mostly increases, the good thing is that investors can liquidate whenever they want.

  • ROI’s: Is that the saving that you’ve earned over the period? If that’s the case, then a “SMART INVESTMENT” is the best thing to do to increase your capital worth. A practice well adopted from centuries, and well-fitter in UAE’s markets. The investment in real estate is safer and the value of the property increases over time.

Real estate is an imperishable asset, ever-increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.” –Russell Sage

  • Rental Yields: what better than investing money in a market where you can get a handsome amount of rental yields, apart from that the value of your property also increases with the time. Real estate market of UAE had the highest rentals compared to most capitals of the world.

Hence, in our view; by investing in the UAE real estate, you can get three benefits at one time. Your money is secure, the value of a property is raising, and finally, the annual increase in rental yields.

But to make a wise decision, it is necessary to look at every aspect before investing because it’s not compulsory that, a real-estate investment always gives profits.

– Step 4: Selecting the Right Property

Closely linked with the previous step, the desired goals are profits and rents. The rental yields & ROI’s are different in commercial vs residential properties. Let’s discuss some residential and commercial areas where you can make smart investments.

  • Land & Plot: If your initial goal is not to earn rents quickly, then buying a chunk of land or a plot is a good option. If invested correctly, your investment will grow over time with more possibilities in future like future selling, housing projects, a Joint venture, or any other.

Few of the best areas are Dubai South, Dubai Hills, The address at Jumeirah beach, Dubai Silicon Oasis. In Abu Dhabi areas like Yas Island, Al Reem Island, Al Khalidiyah, Reef, Al Mushrif, and few others are best to invest in a plot with future aspects.

  • Residential Properties: The demand for residential units is high due to rentals yields & profits at selling. The UAE’s real estate market is now dramatically changed and driven by both investors and end-users as well.

Business Bay Apartments, International city, Marina Diamond 1,4,5, The Residences at Business Central, Bay Square Buildings, Central Park Residential areas, Festival city apartments are some of the best places in Emirates to invest.

  • Apartments & Studios: UAE is the home of world tallest buildings. Therefore; apartments are in abundance. Too many options are available from the studio, One-bed, 2BHK, 3BHK. Studios are one of the hottest selling property in UAE. Since the most apartments are the studios and sized between 400-500 sqft. If you are thinking to start from a small investment they’re best to invest.

  • Buying a Commercial Property: UAE had the best deals when it comes to commercial properties. Investors have plenty of options available. You can invest in an office space, warehouse, a hotel room, hotel apartment, or a small commercial shop.

Since the oil price has dropped, just like many other economies, UAE had also suffered while the expansion plans are also ongoing. However, this can be the best time to buy space for an office.

Places like Business Bay, Bay Square, Icon Tower 2, Bay Square Building 10, 11, 12, World Trade Centre Residence, Ontario Tower, whereas in Abu Dhabi,

– Step 5: Evaluation & Negotiations

Once you had finalized your decision about what kind of property you’re purchasing, here are the few other points to note. Let’s assume you want to invest in commercial property with at least 15% rental yields annually. Here are the following things to consider.  

So here are the few things that you need to look at before moving towards the payment process.

  • Developers Evaluation: Although there are many famous developers know for the best, but sometimes even the best properties in the UAE are built by some unknown developers. Therefore, do your proper research about the developer, review the previous & upcoming developments. Take an observer eye on his due diligence.

  • Age of Property: The real estate markets are not very old in UAE, hardly two decades. Knowing the exact age of property is necessary.

  • The Management Company: Almost all the Emirates in UAE had management companies who look after the buildings both residential or commercial properties. They always had security personals, repair & maintenance staff, cleaning staff and for the rest of the management.  These management company’s reputations can make your decision easier.

  • Market Asking & Selling Price: We all know the general rule that there is a difference between asking and actual selling prices. In many cases, it can drop up to 15%. Compare the asking prices with comparative properties.

  • MOU: According to rules, both buyers & sellers had to exchange a security cheque amounting 10-15% to agree to sales value. If any party decide to cancel the deal, the other party can keep that reserve amount against the compensation of their time and other efforts. 

Finally,

Investments in UAE real estate sector are the most profitable. If you want to invest in real estate United Arab Emirates is one of the best to do so. We’ve discussed all the steps for a careful purchase process.

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