Despite recent headlines in the media, there is plenty of positive news for people purchasing and selling real estate in Dubai. Incredibly, the Dubai real estate market has weathered the Covid-19 pandemic; in the first half of 2020, property values in Dubai’s most sought-after districts have stayed steady. The market for real estate in family-friendly communities including Palm Jumeirah, Arabian Ranches, Downtown Dubai, and Dubai Marina has grown in demand.
In the first half of 2020, 15,897 sales transactions of Dhs32.5 billion were reported in Dubai, according to data from the Dubai Land Department.
Purchasing Real Estate in Dubai
Purchasing an off-plan property or an existing home—also known as “resold” property—are the two primary methods of acquiring real estate in Dubai.
Resold real estate
Purchasing a house that has been resold is a fairly straightforward process. You can submit an offer once you’ve located the home you want to buy (usually through an agent). In the event that it is approved, a deposit and Memorandum of Understanding (MOU) signing are required. The conditions of the selling and acquisition are outlined here. It is advised that you retain the services of a property lawyer to carry out the required due diligence and to examine the supporting papers.
Off-plan real estate
Purchasing a home that hasn’t been built yet—typically from the developer—is known as buying off-plan. Purchasing off-plan has a number of benefits, including:
Reduced upfront expenses: While deposits for off-plan properties range between developers, they are often less than those needed for resale properties.
Purchase the property at the best possible price – Purchasing a property off-plan gives you the chance to do so and may result in a profit on the sale.
Purchasing off-plan carries dangers, therefore you should have a knowledgeable real estate attorney guide you through the procedure. The biggest risk that buyers are exposed to is:
Late completion: Construction projects don’t always finish on schedule, and delays might last for up to a year. You might have to pay rent for far longer than you anticipated as a result of this. You will have received legal advice regarding the developer’s solutions for the delayed completion. They will counsel and represent you in filing a claim at Dubai Court if these are not acceptable.
Selling Real Estate in Dubai
The procedure of selling a property is not too complicated. To market the property, you will have to sign a Form A agreement with a broker. The commission that the broker will receive upon successfully selling your property is specified in Form A.
An MOU will be finalized once an offer has been accepted and terms and conditions have been decided upon. Moreover, a No Objection Certificate (NOC) must be signed by you. Once the developer is satisfied that any cash owed to them in the form of service charges has been settled in full, they will normally issue the NOC in exchange for payment of a fee.
After the purchase amount has been paid in the form of a manager’s check made payable to the seller on the transfer date, the Dubai Land Department will issue a transfer of ownership after you receive the NOC.
In order to guarantee market stability, there are requirements that must be met if you are selling an off-plan property before it is finished. Developers typically require 30–40% of the whole cost to be paid before you may sell, though individual developers may have different policies. Before selling your off-plan property before it is completed, you might need to abide by additional conditions stated in the developer’s agreement.
Obtaining legal counsel
Purchases and sales of real estate in Dubai have grown in popularity among foreigners, residents, and non-resident investors. Investing in professional legal counsel and representation from the start of the sale and buy process is the greatest approach to reduce risk throughout the transaction.
It would also be in your best interest to draft a Will to safeguard your assets, as in the United Arab Emirates, Sharia law governs inheritance for Muslims, while non-Muslim expats may be subject to the laws of their home countries. Nonetheless, foreign property owners are advised to create wills in order to address the numerous ambiguities surrounding real estate inheritance matters. The UAE does not follow the “right of survivor-ship,” which is the practice of property passing to the surviving joint owner following the death of the other, and local courts will have the last say in legal matters.