Buy Villa in Dubai

 Buy Villa in Dubai

5 Things to Consider Before Buying a Villa in Dubai

Why invest in Dubai is the first question that enters your mind before making a home purchase in Dubai. Simply put, Dubai is an economical place to buy quality real estate because its property prices per square foot are cheaper than those of many other cities worldwide.

According to the World Population Review, Dubai is one of the cities with the greatest population growth rates in the world, with a multiethnic population growing at a rate of 10.7% per year. But there are several things to think about to prevent any unforeseen errors before moving on, whether for personal use or merely for investment!

1- Type of property

Freehold and leasehold properties are the two categories of legal ownership in Dubai.

With a leasehold property, the buyer only has access to the villa's usufruct rights—not the land itself—for a term of 99 years or less, renewable at the end of the initial term. Compared to freehold ownership, leasehold offers more options for pricing and location in particular. The main drawback of such a property is that any renovations or repairs to the villa require the freeholder's approval. Subletting is not allowed either.

On the other hand, international investors who are at least 21 years old are permitted to own real estate in Dubai on a freehold basis since 2002. Yet, there are regions around Dubai that have been specifically designated for freehold ownership. The villa and the property on which it is situated are entirely owned by the freeholders. Also, they are permitted to sell, lease, and rent the bought property. Another benefit is that a freehold property automatically passes to the family whether or not a will is present. The purchase of freehold real estate is also permitted by foreign nationals who reside outside the UAE.

The first things that draw purchasers to a home for sale in Dubai are location and neighbourhood. Although though freehold homes are frequently found in expensive neighbourhoods, it is still advisable to take your time when choosing the ideal one for your needs as a resident or your financial goals as an investor. The right site must be chosen because it will have an impact on the return on investment you may expect in a few years.

 

2- Developer’s credentials and reputation

You intend to purchase a villa in Dubai that is up for sale. You must first investigate the reputation of the developer. A trustworthy developer needs to be registered with the appropriate regulatory body. When purchasing from a function Object() { [native code] } who has a track record of reliability, especially when it comes to ongoing projects, it is always safer. Going out in the field to conduct research is very helpful in addition to conducting an extensive online search on the builder. Customers who have purchased flats in past complexes as well as local brokers can be of great assistance in this regard. It is required to verify the contractors' qualifications prior to making any purchases. Keep in mind that a lack of transparency is a sufficient excuse not to purchase.

 

3- Facilities and amenities

They enhance residents' enjoyment, amenities are important in the property you choose. One of the most crucial features a buyer looks for is location. Then there are other amenities like being close to supermarkets and shopping centres, having a lot of green space, having covered parking, having a fast Internet connection, etc. Facilities like gyms, spas, swimming pools, play spaces for kids and adults, childcare centres, etc. are among those that are becoming more and more popular in real estate. Check to see if the majority of these amenities are offered on the home you want to buy.

 

4- Legal documents and fees

An investment in or purchase of a villa in Dubai cannot be accomplished without presenting certain legal documents and paying certain fees, much like the acquisition of any property anywhere in the globe.

• Before purchasing a freehold property, you must complete the following 4 legally required steps:

• Prior to the sale: The first step prior to signing the final sales contract is this agreement with the seller. It enables you to bargain, set the terms of the sale, decide on the payment options, etc.

• Memorandum of Agreement: The MOU or sale contract, also known as Form F, must be downloaded from the Dubai Land Department website and completed by both the buyer and the seller before being signed in front of a witness at the Registration Trustee office once you and the seller have agreed on the parameters of the agreement.

• Certification of No Objection: Request a NOC from the developer, who typically issues these in exchange for a charge, to transfer the ownership.

Transfer of property: To complete the property transfer, you must submit the following paperwork to the Dubai Land Department:

a cheque made out to the seller for the amount of the purchase price the buyer's and seller's original identity documents (ID, passport and visa)

the first NOC

The executed Agreement

As for the fees, you have to pay:

• 10% security deposit on the property to the Registration Trustee, which is returned once the property transfer is finalized. 

• 4% of the property value to DLD

• AED 520 for the Title Deed

• AED 4,200 Administration fees to DLD 

• Agent’s fee of 2% of the property value

• NOC charges from 500 AED up to AED 5,000

 

5- Price appreciation and capital gains

Properties are now considerably more cheap because to Dubai's burgeoning real estate market, and returns on investment currently outpace those of European global capitals. Moreover, a decrease of 5-8% is anticipated this year. As a result, the biggest advantage of real estate investments is price growth. Due to the significant economic gains and other advantages, including citizenship for foreign investors and more benevolent visa regulations, many people purchase second homes as investments.