Planning to buy property in Dubai? Here’s how to go about it

If you are planning to buy a house in Dubai and it is your first time then it is important that you understand the laws of this place thoroughly so that you do not end up in a mess. While buying your own house in Dubai, you will need to understand the laws of the land as well as the benefits that buying property here offers. The discussion below is an attempt to explain the same.

• Before you go ahead and invest in a property, you should understand the basic difference between Dubai freehold and leasehold areas. Earlier in Dubai, foreigners were not allowed to buy a property in the city and this is when the concept of freehold areas came in. Thus the freehold areas allow people from any part of the world to invest in property here. On the other hand, leasehold areas are those where property or land can be taken on lease only and cannot be purchased.

• The Government of UAE has set different rules for expats and locals looking forward to buy property. For instance, expats can only purchase Dubai property in selected communities that are known as freehold areas. Even though the expats can take a property on lease in leasehold areas for a maximum of 99 years but the ownership of that property will be given back to the landlord at the end of the lease period. While in case of the locals there are no such laws for of limitations for buying property in Dubai.

• Before you go ahead and invest on a property in Dubai, you should be clear about why you want to buy property here. If you are planning to buy a property here just for your personal use; then you will need to consider certain important things such as accessibility to schools, hospitals, restaurants and supermarkets. However, most of the expats buy property in Dubai just for investment purpose as here real estate investments come with several benefits like no tax, high rental yield, easy and transparent process and high capitalization of investment.

• The next important thing that you need to do is carry out a research on the different areas. You can always take help of a professional to zero down on the best areas that will meet your requirements.

So, after considering all the above mentioned factors, before you finalize on a property that you wish to invest in, you must ask the real estate agent you may be dealing with, the following questions:

• How credible and experienced the realtor is whose project I am about to invest my hard earned money in? This will give you the confidence to invest your money with that particular realtor.

• When was the construction of the building completed or by when it is to be completed (in case of under construction properties)? Knowledge of this will not help you determine the quality of construction but will also help you plan out your finances.

These are some of the important facts that you will need to consider when investing on a studio flat in Dubai or an apartment in the city.

In case you are looking for financing options for your new property, you can even get in touch with the financial institutions and banks that offer attractive interest rates on home loans taken for purchase of such property.