Buying Property Process

It’s tempting to start looking for properties before anything else. Of course, it helps to know what’s out there and what it costs. But the first thing you should do is to understand what your financial resources are like, how much you can put aside towards property purchase and how much you would need as your safety net.

Based on that, you decide whether or not you want to pay for your property in cash or opt for a home loan. In the latter case, it is always advisable to appoint a qualified mortgage broker. They can help you find the most suitable home finance deals.

Your budget is likely to influence this decision. You will need to factor in up-front costs such as broker’s commission, transfer fees and so on. Read this article to get a detailed breakdown on costs related to buying your property in Dubai.

If you are keen on moving into a new home as soon as possible or to invest in a property for quicker rental returns, you should only explore properties that are ready to move in; possibly already tenanted.

If you are considering a move in the longer term or planning on capital gains, exploring off-plan properties is the way to go. This will allow you to benefit from current promotions, lower prices and developers’ payment plans.

The next thing you want to think about is where you want to live. Based on your preference, lifestyle requirements and convenience, there are various residential and mixed-use communities across Dubai.

If you are buying for investment instead of personal use, then consider locations that are in high demand in the rental market. We recommend appointing a qualified property consultant. They will be able to guide you and save you the time you would have spent in doing this research.

Click here to meet our team of expert consultants.

Now is the most suitable time to look for properties. You will now have a good idea of the price range you want to look in, when you would like to take possession and the kind of locations you would prefer. Based on these, you will find properties ranging from cosy studio apartments to family townhouses and spacious luxury villas.

There are two ways of going about it: (1) property portals; and (2) appoint a property consultant. While property portals will give you a wide selection to choose from, a property consultant will be able to save you a lot of time by narrowing down your search to only show you properties that meet your requirements.

Once you have chosen your property, it’s time to make an offer. If you are buying directly from a developer, that’s easy. You pay the booking amount or down payment, sign the Sale and Purchase Agreement (SPA) and proceed as directed.

If you are buying from the secondary market (i.e. an individual seller) then either you agree to the price or make an offer to the seller based on your calculations in Step 1. – Plan Your Budget. Once both parties agree on the terms of the deal, the details are officially documented in a Memorandum of Understanding (MoU) in an official Dubai Land Department (DLD) document known as Form F.

At this stage, both parties need to provide a security cheque in favour of the other party for an amount which is 10% of the property value. The security cheques from both parties is held by the property consultant; and is not handed over to either party.

If you are buying from the secondary market, then the seller needs to apply for a No Objection Certificate (NOC) from the property developer. This usually costs between AED 500 to AED 5000. Usually, both parties will go to the developer’s office to apply for this document. However, in some cases this can also be done online.

The down payment for your property purchase has ot be in the form of a manager’s cheque. Cash payments are no longer accepted by the Dubai Land Department (DLD) and DLD Trustee offices. Therefore, you should contact your bank to make sure they issue a manager’s cheque for the amount equivalent to the down payment.

Typically, this process takes no longer than a few hours at most. The bank will ask you for the seller’s details and documents. So please make sure you carry those with you.

Finally, on the date of your appointment at a Dubai Land Department (DLD) Trustee office, you should attend along with the seller and the property consultant(s). If you have applied for a mortgage, the lending bank’s representative will also be there to hand over cheques pertaining to your loan amount(s).

Once all the charges and fees are paid, the DLD will issue a title deed that mentions the property details and certifies you as the new owner of the property.