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Apartments in Dubai for Living and Investment

Posted On Thursday, 21 July 2022 15:27
Apartments in Dubai for Living and Investment

Features of Real Estate Acquisition

In 2002, Dubai Government adopted a revolutionary law regarding the real estate market in the Emirate. According to this legislation, foreign citizens have the right to purchase any kind of real estate in full ownership. Since then, thousands of foreigners started to buy apartments, villas, and townhouses. There are more than 74 thousand property units for sale. 

The only requirement issued is that foreigners can acquire property only in freehold areas. You can rent an apartment in Dubai or buy Metropolitan real estate in 8 districts of Dubai and enjoy full ownership. This article explains where those freehold areas are and how to buy a place to live in Dubai?

Choosing a Property for Purchase

The freehold zones are located in the most developed neighborhoods of the Emirate. There are dozens of them, and the most popular are:

  • Downtown Dubai
  • Dubai Marina
  • Palm Jumeirah
  • Jumeirah Village Circle (JVC)
  • Arabian Ranches

 

All those areas offer townhouses, apartments, and villas in both affordable and luxury categories. However, searching through thousands of offers can be time-consuming for people with tight schedules. Another headache is dealing with the subtleties of the local law, property registration, and so on. To avoid stress when looking for accommodation, you can hire a real estate agency that will take this burden off your shoulders.

But here you face one more challenge — finding the right real estate agency. Here are a few tips to make it easier for you:

  1. 1. Make sure the company is legal

First of all, you have to check whether it has a license for the relevant type of activity. 

  1. 2. Reliability is crucial 

Google the potential company and read reviews — its reputation and user feedback cannot be neglected.    

3. Full understanding of the local market

The agency must have a considerable hands-on experience in Dubai’s real estate market. If there are lots of closed deals behind its back, you may consider this agency a worthy option.

However, a professional company with a huge catalog is not enough to move in. So far, you are only somewhere halfway.

Contract of Sale

The first step towards becoming an owner of the desired property is signing a purchase and sale agreement. Sometimes it is called a Memorandum of Understanding (MOU) or Form F in Dubai. It has to be drawn up correctly respecting the local law, so you will be the legal owner of the apartment or house. You can look for this form on the Dubai Land Department's official website or have a real estate agent that will get everything done.

After every detail in the agreement is specified, both the seller and the buyer need to sign it in front of a witness. In most cases, the witness is a real estate agent.

It sounds easy, but in such a popular destination as Dubai, good real estate offers get closed within a few days. That is why you need to pay a booking deposit to make sure the seller will not sell it to someone else while your agent is preparing the documents. Usually, the refundable deposit is around 10% of the total property price. In Dubai, you will have to pay between 5,000–37,000 AED.

Remember that a signed MOU is a key factor for the successful completion of the following step.

Real Estate Registration

To obtain full ownership of the newly-bought property, signing up a contract of sale is not enough. You still need to register it in Dubai Land Department (DLD), which is the main entity that handles and registers freehold purchases. Here is a detailed instruction on how to do this step-by-step:

  1. 1. Together with a seller, pay a visit to DLD and bring a set of documents with you.
  2. 2. Afterward, you need to transfer the money to the seller in the presence of a DLD official.
  3. 3. All the details are entered into an e-form and signed by both parties.
  4. 4. Both the buyer and the seller pay fees to the cashier (transfer fees of 4% (DLD), 2% of the property value (agency fees), plus registration fees of ~5% VAT).
  5. 5. You receive a new title deed with your name and the map with the property location.

  

Note that if you are going to buy a property from a developer, the whole process will be completed at the buying stage with the support of the developer.    

Documents for the Land Department

The process of property registration in Dubai Land Department is streamlined. But there are two important factors that are crucial for DLD if you want to do it quickly: the presence of both parties and all the documents. In particular, you will need to bring:

  • Passport (original and copy)
  • Original title deed
  • The No Objection Certificate (NOC) from the developer
  • Sales and purchase agreement 

 

No Objection Certificate is a document that proves the issuer (developer) has no objection to the deal between buyer and seller. Remember that hiring a real estate manager will help you not only to buy and register the property with a little effort but also collect all the documents. 

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