Are you still hesitant about making a decision to buying an apartment in Dubai? In this article, we will answer all your questions and help you overcome all your concerns.
Certainly, there are pros and cons to buying an apartment in Dubai, as the process of buying a home is both exciting and challenging. Whether you are someone who is taking this big step for the first time or an experienced investor,
Dubai is considered the most attractive real estate destination in the region due to the many and diverse options available, and because owning an apartment or property in Dubai has become a dream for many, given that it is the new global business hub.
buying an apartment in Dubai
The most important factors when looking for a house for sale in Dubai.
To ensure that the purchasing process is as easy and smooth as possible, we will list for you the most important factors to consider when looking for an apartment for sale in Dubai.
1- Property ownership period:
Before starting this investment, you need to think about several things: How long have you been in Dubai? And for how long you plan to stay? The answers to these questions are extremely important in estimating the expected results and potential returns on investment, as if you are unsure about your long-term plans or the duration of your stay in the area, renting may be more suitable for you.
2- Suitable cost:
There is a global rule that helps determine the ability to bear costs, which is that monthly housing expenses should not exceed 30% of your total income. It is also necessary to set a budget for the initial payment of the property price. As property owners, you will also have to cover ancillary fees such as maintenance fees, annual service fees, fees of the Department of Lands and Properties, administrative fees, property registration fees, value-added tax for properties, real estate agents and brokers fees, mortgage fees, and property mortgage registration fees at the Department of Lands and Properties.
3- Maintenance costs:
When buying an apartment in Dubai, you will be required to pay annual maintenance fees for the property to the Department of Lands and Properties based on the services and maintenance fee index set by the Real Estate Regulatory Agency, which determines fees per square foot that vary in value according to the residential complex.
You can also check the latest fee updates directly through the official website of the Department of Lands and Properties in Dubai.
4- Savings:
The initial payment may be one of the most important factors to consider before making a decision to buy property in Dubai. According to the regulations of the Central Bank of the UAE (CBUAE), the minimum deposit required for foreigners in Dubai is 25% of the property purchase price for properties valued less than AED 5 million, and 20% for UAE citizens. Personal loan funds from a local bank cannot be used to finance the initial payment, as this payment must come from your own savings. However, you can use personal loans to finance transaction costs, agent fees, and bank fees.
5- Rental returns:
If you plan to invest in your property in the real estate market in the future, it is important to evaluate whether the expected rental income is sufficient to cover the monthly mortgage and maintenance costs.
6- Real Estate Residence Visa:
The government has set a number of conditions that must be completed in order for foreign investors to obtain a real estate residence visa in Dubai. Property owners whose properties are valued at more than AED 1 million are entitled to a multiple entry permit for 6 months, or a residence visa for 2 years. They can also apply for sponsorship for their direct family members after obtaining the visa. For properties valued at more than AED 5 million, and which are not subject to a mortgage and are retained for 3 years, property owners are entitled to a residence visa for 5 years, subject to the specified eligibility conditions.
buying an apartment in Dubai
Additional points to consider when buying a property in the UAE
There are additional general points that should be considered when buying a property in the UAE. Research and inquiry are important to ensure that your requirements and your family’s needs are met in the long term.
1- Location:
When searching for options to buy an apartment in Dubai, you should consider several important points, such as the number of family members, age, and your lifestyle. You should also pay attention to the proximity of the home to schools or childcare facilities, the time it takes to get to your work or your children’s school, and the availability of public transportation. We also recommend inquiring about the options and activities provided by the residential complex, especially if you are interested in having restaurants, cafes, and cultural landmarks near your place of residence.
2- Property size:
The number of family members also plays an important role in determining the size of the property, especially if you plan to increase your family size in the near future or want to provide a spacious backyard for your children.
3- Layout design:
Room sizes in properties vary, which makes evaluating property layouts an important matter. Therefore, the property should meet your preferences in obtaining open or spacious living spaces or larger bedrooms.
4- High quality:
The age of the property is an important consideration when making a purchase. Therefore, we advise you to pay attention to the technical condition of the property and any maintenance or renovation work that may be needed. If you want to buy a property off-plan, you should pay attention to the reputation of the developer of the property and their commitment to delivering according to the specified specifications and deadline.
5- Selling and monthly rental costs:
Survey results indicate that 50% of people believe that buying is a smarter financial option than renting. The main difference between the two is that when you buy, you are closer to owning your own home through the monthly mortgage installments that you pay when buying, while in renting, you pay the mortgage to someone else with each monthly rent payment.
buying an apartment in Dubai
- In addition, your real estate properties will achieve an increase in capital in the long term, meaning an increase in the market value of your properties compared to the purchase price. The longer you own the property, the more opportunity there is for it to increase in value, and therefore increase your profits. However, it is important to evaluate your long-term commitment to living in Dubai and analyze the costs of renting versus buying, including all hidden fees and costs.
