Considerations for Buying Property in Dubai

Overseas investors have been permitted to buy property in Dubai from nominated residential developments since 2002. A number of real estate projects are already available and others are on track.

Dubai has experienced remarkable economic growth in the past two decades. Investment by foreign companies has been encouraged by a free trade zone philosophy and the creation of flexible industry specific operational centers such as the Internet and Media Cities. Dubai's GDP on average increases by 7-8% a year.

Important Considerations for Buying Dubai Property

The property market like any other market is driven and underpinned by the realities of supply and demand. The residential property market in Dubai is not exempt from these realities and 'indeed', why Dubai is so successful in all sorts of different areas, is that it fully understands and exploits the supply/ demand dynamic.

1) Can u afford it?

Buying properties in Dubai is just like any other investment and can fluctuate according to overall market. How long you are going to hold the property will determine whether you can be sure it will make money or not.

2) Choose a real estate agent

Sorry to say it but, yes, there are some fly-by-night companies out there who’ll take your money and run. Check credentials, check that the company’s registered at the Lands Department or Dubai Real Estate Regulatory Authority (RERA), check that the real estate agent has an escrow account, and then check the developer’s track record. Are past buildings of good building quality? Are communal areas nicely maintained? Are residents happy?

3) Find out about any hidden extras

Service charges, which cover maintenance of communal areas such as pools and gyms, landscaping, window-cleaning in apartments and son on, vary massively. Find out how much it is per square foot; whether it’s gone up in recent years; whether or not it’s currently being subsidized by the developer.

Find out what the government housing fee would be on your property. Ask residents, via on online forums if you don’t know anyone, what the average water and electricity (DEWA) bill for a similar property would be.

Here are some of the essential considerations for buying any Dubai rental, apartment villas or any other property for some investment in Dubai.