22/05/2024
🏙️ Buying Property in Dubai's Primary Market - A Short Guide
Purchasing property in Dubai's primary market is an attractive and profitable investment. However, before making a decision, it's essential to familiarize yourself with several key aspects to maximize the investment potential. Here are the most important things you need to know before buying property in Dubai's primary market:
🌟1. Choosing the Right Developer
One of the most critical steps in purchasing property in the primary market is selecting a reliable and reputable developer. Dubai has many development companies, but not all offer the same quality and standards. Before making a decision, it is worth:
✔️ Checking the developer's history and past projects - If you're in Dubai, visit the developer's buildings; otherwise, user photos on Google Maps can be helpful.
✔️ Reading reviews from other buyers and tenants - Join groups of specific neighborhoods and see if the issues faced by tenants are acceptable. It's also worth reviewing incidents after recent floods.
✔️ Checking through the "Dubai REST" app the completion dates of previous projects and if they aligned with the initially set dates.
🌟2. Legal Regulations, Visas, and Fees
Buying property in Dubai by foreigners is a very straightforward process, especially in the primary market. In 2023, 40% of all real estate transactions involved foreign investors (those without resident status).
✔️ You only need a passport, ID card/driver's license, address, email, and phone number to purchase. Residency is not required.
✔️ Visa: After purchasing property, you can apply for a residency visa.
- Investor Visa - Property value from 750K AED - 2 years
- Retirement Visa - Property value from 1M AED - 5 years
- Golden Visa - Property value from 2M AED - 5 to 10 years
- Cost: Approximately 7,000 to 10,000 AED
- Following recent regulation changes, you can apply for a visa when the property is 50% completed.
✔️ Costs: Add 4% registration fee to the Dubai Land Department and the Oqood fee to the property price. (Additionally, in the secondary market, there is a 2% unified agency fee)
✔️ Annual maintenance fees for the property, depending on the project, range from about 15-35 AED per square foot (these are fees for building maintenance, staff, etc.).
✔️ Agencies in Dubai do not charge commissions for sales; buying through an intermediary costs the same as buying directly from the developer.
✔️ 0% tax on rent and capital gains.
✔️ All payments are sent directly to the developer.
🌟 3. Infrastructure and Location
Dubai is a vast metropolis, and when thinking about a good investment, we do not have to limit ourselves only to the city center. Distances of 20 minutes by car are not considered far here, and many residents increasingly prefer living away from the city's hustle and bustle. Here's what to consider:
✔️ Access to infrastructure: Proximity to schools, nurseries, hospitals, shopping centers, restaurants, cafes, and quick access to the city's main roads.
✔️ Development plans for the area: Planned investments in infrastructure (e.g., metro development, train stations, government investments in the area) can significantly affect the future value of the property.
✔️ Nearby residential buildings: Not every building in the same area will generate the same profits. It is essential to analyze the demand and supply of different class projects. For example, in a district lacking premium investments, it is worth investing in such a project to gain a market advantage and offer a product in short supply.
🌟 4. Post-Purchase Support
While buying from a developer in some countries comes with additional benefits, in Dubai, purchasing through an intermediary is preferred. Why?
✔️ High turnover of employees in the real estate market. The person you were in contact with during the transaction might be working for another developer when the building is handed over.
✔️ As mentioned, you do not incur additional costs related to purchasing through an intermediary.
✔️ By buying through a trusted agent, you can expect later support in resale, rental, or other formalities.
✔️ Investment assessment: A good real estate agent will be able to present you with the pros and cons of individual investments and offer alternative options that may better suit your needs and expectations. This way, you gain a fuller picture of the market and can make a more informed decision.
I hope the above information has been helpful. If you are interested in investing in Dubai, would like to see exciting projects, or need additional information, feel free to contact us.
