Know Your Rights: An Ultimate Real Estate Buyer’s Guide

Buying a property in the UAE can be challenging, especially with so many options available. Choosing the right property depends on various factors like laws, prices and requirements. Whether you want to relocate here or invest, our real estate buyer’s guide is a game changer.

Let’s walk you through the property buying process with our quick tips.

• Eligibility
• Freehold vs Leasehold Properties
• Start With Budgeting
• Hire a Real Estate Agent
• Property Location and Requirements
• Compare Prices
• Property Inspection
• Negotiate on the Price
• Gather Necessary Documents
• Complete Property Buying
• FAQs

A Buyer’s Guide – 10 Expert Tips for Purchasing a Property

There is much that goes behind a successful property purchase, from choosing the right location to finding one within budget. This process can be tedious with a lot to focus on, from legalities and buyer rights to budget and documentation.

To facilitate all new and seasoned buyers, we have compiled a real estate buyer’s guide. Without any further ado, let’s get started.

1. Eligibility

First things first! Before moving on with the property-buying process, the first step is to consider eligibility. According to Law Number 7 of 2006, property buying is permitted for locals, GCC citizens and expats. Here are the allowed parameters for buying a property in the UAE:

• UAE and GCC citizens can buy properties all over the Emirates.
• Expats can buy properties in designated freehold and leasehold areas.

Expert Tip: Always cross-check property buying legalities in the desired emirate to avoid breaching laws. Looking for a property in Dubai? First, go through the legal procedures to buy a property in Dubai.

2. Freehold Vs Leasehold Properties

Expats can buy properties in a few designated areas. Now, a common question that comes to mind is, leasehold vs freehold – which is a better option? It depends on personal preferences, but here is a quick overview of both the options:

Freehold Properties

Freehold properties allow a buyer to purchase a property with land. It permits complete ownership of a property. Here are some of the top freehold areas in Dubai and Abu Dhabi:

• Freehold areas in Dubai: Al Furjan, Business Bay and Downtown Dubai
• Freehold areas in Abu Dhabi: Yas Island, Al Reef, Saadiyat Island

Leasehold Properties

Leasehold properties allow a buyer to own a property only for a fixed period. The buyer owns the property but not the land. A common leasehold arrangement is a 99-year lease.

Expert Tip: For choosing between freehold and leasehold, consider factors like budget and long-term plans.

3. Start With Budgeting

Before you jump into browsing properties, begin with setting a realistic budget. Most buyers or investors fail to budget properly which wastes time and develops undue stress. For this reason, get a clear idea of the big picture and all the associated costs. This includes admin costs, real estate fees and property prices.

The majority of property buying costs are similar for each emirate. Here is a breakdown of general and extra costs for buying a property in Dubai:

• Down Payment:
  • Properties under AED 5M: Expats usually have to pay a 20% down payment and nationals 15%.
  • Properties over AED 5M: Expats have to pay a 30% down payment and nationals 25%.
• Financing: Decide the right financing option for you, from cash to payment plans and more. It depends on long-term goals and how much you can afford over time.
• Miscellaneous Costs: Other fees include:
  • Property valuation costs
  • Title Deed fee
  • Admin fees are to be paid to the Dubai Land Department if the property is in Dubai
  • Agency fee
  • Security deposit

Expert Tip: Finalise a budget by considering all the costs and see the right financing option. The best for you is to write down all your expenses and see how much is left to spend on a property purchase. For expert guidance, you can consult financial advisors in the UAE.

4. Hire a Real Estate Agent

Another expert tip in our real estate buyer’s guide is to hire a registered real estate agent with a BRN number. Ensure choosing a reliable agent by conducting proper research, checking track records and asking for recommendations. For instance, if you are choosing a real estate agent in Dubai, make sure the agent is registered with RERA.

Although you can search for properties on your own, it is advisable to hire an expert. Real estate agents can find properties tailored to your choice and handle everything, from initial visits to documentation.

Expert Tip: Use the Find Agent section of Property Finder to browse reliable agents in your area.

5. Property Location and Requirements

Whether you are searching for a property on your own or hiring a real estate agent, know about your requirements first. This includes property type, rooms and location preferences. Ask yourself some important questions like:

For Residential Purpose

• Which property type do you want such as villas or apartments?
• Do you want a house near your workplace?
• Are there essential amenities nearby, like educational institutions, healthcare facilities and shopping destinations?
• Any additional considerations like a green community or pet-friendly area?

For Investment Purpose

• What is the previous or expected ROI of the property?
• Is the area in high demand?
• What are the prospects of buying a property in the area?

Expert Tip: Write down your requirements to choose the property that suits your needs.

6. Compare Prices

The next step in our real estate buyer’s guide is to get an overview of the market. Compare property prices of different areas and properties within the same area. Use Data Guru to learn about the historical transactions in any area. By comparing prices, buyers or investors can lock in the best deal.

Expert Tip: Don’t always go with the lowest-priced property. Consider factors like resale value, long-term benefit and amenities. To save big, you can also buy off-plan properties in the UAE.

7. Property Inspection

Before proceeding with the legal documentation, get the property inspected. This is for secondary properties to ensure that they are worth purchasing. For a complete property inspection process, follow our dedicated guide.

Expert Tip: Hire a professional property inspection company in Dubai, Abu Dhabi or other Emirates to detect any major issues and faults before buying a property.

8. Negotiate on the Price

Based on your budget and property value, try to negotiate the price. Remember most property owners quote higher prices. Ensure you do proper research and make an acceptable offer.

Expert Tip: For off-plan properties, go with those with flexible payment plans.

9. Gather Necessary Documents

Once you have found your dream home or investment property, the next step is to gather the necessary documents. Some important documents include:

• Buyer’s Passport
• Signed Form B (property buying agreement)
• For off-plan properties, a sales purchase agreement is mandatory.

Expert Tip: Ensure the buyer has a No Objection Certificate from the developer as proof that all dues have been cleared.

10. Complete Property Buying

Voila! Complete the purchase by paying off the initial down payment and other fees decided in the agreement.

Expert Tip: Read the sales agreement carefully and cross-check for any hidden clauses.

FAQs

That wraps up our real estate buyer’s guide to owning a property in the UAE. Now you know all the insights of a successful and beneficial property purchase in the UAE. Buy or invest and unlock an elegant lifestyle and enjoy a high return on investment.

So, what are you waiting for? Browse through the listings on the Property Finder and filter out the area of your choice.

You can also explore the newest off-plan projects in the UAE to buy your dream home.

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