How to Buy a Property in Dubai

20.02.2024
How to Buy a Property in Dubai

Dubai offers exciting opportunities for property acquisition. The perfect blend of luxury, innovation, and prosperity makes it an attractive place for living and investment. However, before making such decisions, it is beneficial to understand the process of buying real estate in Dubai.

Whether you are a local resident, seeking investment opportunities, or looking to purchase a home for yourself and your family, there are several key points to consider. From determining your budget and searching for suitable properties to conducting legal analysis and closing the deal, each stage is important to ensure a successful and secure purchase.

In this article, we will guide you through the step-by-step procedure of buying property in Dubai and provide valuable advice and recommendations.

According to the legislation of the Emirate of Dubai, foreign nationals who are not members of the Gulf Cooperation Council (GCC) are entitled to directly acquire property in Dubai on specified territories known as "freehold" areas. These areas are defined by the Decree of the Ruler of Dubai No. 3 of 2006. They encompass nearly the entire territory of "New Dubai," including popular areas such as Dubai Marina, The Palm Jumeirah, Emirates Living, Jumeirah Lakes Towers, and Downtown Dubai.

Step 1: Determining your budget and requirements

Determine your budget for purchasing real estate, as well as your requirements and preferences. Decide on the type of property you need, such as an apartment, villa, or townhouse, and the additional services and amenities you would like.

Step 2: Property Search

Consult a licensed real estate agent to receive professional guidance and assistance in your search. All real estate agencies in Dubai must hold a license for their respective activities and be registered with the Dubai Real Estate Regulatory Agency (RERA). Additionally, each agent should be trained and carry a personal broker card with an individual number.

Step 3: Property Inspection and Legal Analysis

Inspect the selected properties and conduct a thorough evaluation of their condition. If possible, consult with a real estate lawyer specializing in Dubai property to perform a comprehensive legal analysis, including verifying ownership rights, encumbrances, or any other restrictions.

Step 4: Contract Conclusion

If you have chosen a property that meets your satisfaction, enter into a preliminary purchase agreement (Memorandum of Understanding) with the seller and pay a 10% commission fee to the real estate agency, calculated based on the total property value. The agency will hold the fee until the final settlement and registration of the transaction with the Land Department. For the buyer, this serves as a guarantee of fee refund if the deal falls through due to the seller's fault, while the seller can expect the commission fee as compensation if the deal fails due to the buyer's fault.

Ensure that the property sale contract is in written form. Notarization of contracts is not required; a simple written agreement in English is sufficient. The contract should also include essential terms of the transaction, such as:

- Property details

- Purchase price

- Additional transaction-related payments (more information on payments can be found in our article)

- Deadline for completing the sale transaction

- Timeline and procedure for payments, as well as the parties' responsibilities in case of non-compliance with the contract terms.

Step 5: Obtain Financing (if needed)

If you require a mortgage or loan to purchase the property, approach a bank or other financial institution to secure the necessary funds. Provide all the required documents and undergo a property valuation process.

Step 6: Developer's No Objection Certificate (NOC)

To register the transaction with the Dubai Land Department, the seller must obtain a No Objection Certificate (NOC) from the developer, granting permission to sell the property. This certificate confirms that the seller has no outstanding dues with the developer. The processing time for the NOC ranges from 1 day to 2-3 weeks, depending on the developer company, and may cost between 500 to 5,000 UAE dirhams.

Step 7: Property Registration

Once the developer's NOC is obtained, the seller and buyer proceed with registering the property under the new owner's name at the Dubai Land Department. At this stage, the financial transactions are completed. The buyer receives the Title Deed, a registration certificate that confirms their ownership rights to the acquired property.

If the property is not yet completed, it is registered in the interim registry at the Dubai Land Department. In this case, the buyer receives an Initial Contract of Sale. After the property is handed over, based on the initial contract, the buyer obtains the Title Deed.

The following documents are required for the registration process at the Dubai Land Department:

- Original passports of the buyer and seller

- Original property registration certificate in the seller's name

- Original NOC from the developer

- Copy of the contract of sale

Before issuing the Title Deed, the government registrar asks the buyer and seller to reconcile their financial obligations and sign a document stating that the seller has been paid in full for the property. It is necessary to prepare all the checks in advance and agree on the names and amounts specified on them with the seller. In cases where a real estate agency is involved in the transaction, it assumes the coordination and verification of payments.

For any further information on purchasing property in Dubai, you can contact Major Estate. Leave a request on their website to receive feedback.

Other news
Luxury Projects Dubai
24.04.2024
Luxury Projects Dubai

Dubai is an impressive city known for its modern architecture, high standard of living, and luxuriou...

Learn more
Answers to the Top 12 Questions About the Dubai Real Estate Market: From Investment Risks to Latest Trends
08.04.2024
Answers to the Top 12 Questions About the Dubai Real Estate Market: From Investment Risks to Latest Trends

A real estate expert in Dubai shared analytics and forecasts for the Dubai real estate market in 202...

Learn more
The Dubai South district in Dubai continues its development, encompassing all types of housing offerings.
01.04.2024
The Dubai South district in Dubai continues its development, encompassing all types of housing offerings.

Learn more
 Five promising locations for investing in Dubai residential real estate in 2024.
26.03.2024
Five promising locations for investing in Dubai residential real estate in 2024.

The real estate segment under development in Dubai has demonstrated impressive growth over the past...

Learn more
Your Guide to Real Estate Investment in Dubai: Tips for Affluent Expats
22.03.2024
Your Guide to Real Estate Investment in Dubai: Tips for Affluent Expats

In the world of Dubai real estate, a notable figure has emerged — Ahmed, a real estate specialist pr...

Learn more
There are attractive discounts on real estate in the UAE for Ramadan
18.03.2024
There are attractive discounts on real estate in the UAE for Ramadan

With the arrival of the sacred month of Ramadan in the United Arab Emirates, a period of generous of...

Learn more
Beachfront Luxury Villas for Sale in Dubai
17.03.2024
Beachfront Luxury Villas for Sale in Dubai

Imagine a luxurious villa in Dubai—a modern home by the sea located in one of the most attractive pl...

Learn more
How to Choose a Real Estate Agent in Dubai
14.03.2024
How to Choose a Real Estate Agent in Dubai

If you are considering buying property in Dubai, you are likely wondering how to find an experienced...

Learn more
 How to relocate to Dubai for permanent residency in 2024?
14.03.2024
How to relocate to Dubai for permanent residency in 2024?

Dubai, one of the seven emirates of the UAE, has over the years solidified its reputation as an outs...

Learn more
Subscribe to the news
Receive exclusive news and special offers.