Throughout recent years, the world has seen Dubai executing some of the most astonishing architectural designs and development plans ever. Everyone indeed wishes to live in one of the villas or apartments in Dubai to enjoy living in style and class.
However, it is essential to understand the question ‘how to buy a house in Dubai?’ to be able to make a purchase quickly. There is a proper process a person needs to go through, including various fee payments to individuals like a real estate agent.
Foreigners, who come to Dubai to work or even settle often ask questions like how to buy a house in Dubai? Are they eligible to own a property in Dubai? There are specified freehold areas where residential units are offered to all the non-UAE nationals provided, they are in the city legally, and all the required documents are submitted.
Cost of a Property in Dubai
Dubai is a city full of residential areas with different types of residential units, such as flats, studio apartments, townhouses, villas, and mansions. The prices vary according to the kind of residential unit you wish to live in. Usually, prices are decided according to the location of the place you are interested in. Other factors like the stage of construction a house is at, the distance between the home and schools or hospitals, and the provision of facilities play a significant role in pushing the prices up.
It should be noted that the cost of homes shown online on websites of real estate developers does not include other charges like bank fees, house registration fee, and commission. The cheapest place can be of AED 500,000 or less, while the most expensive ones can go up to millions. If you have a big bank account, then it is much easier to own a property in the UAE.
The Buying Process
To start your search for a suitable house, you first need to hire a real estate agent who is entirely familiar with all the residential areas in Dubai. After finalizing a place, you are required to pay 2% of the purchase price of the property to the real estate company for their services.
A total payment of 4% of the purchase price needs to be made to the Dubai Land Department (DLD), which is equally divided between the buyer and the seller. Beware of the real estate agencies who claim that all of 4% needs to be paid by the buyer. They usually offer to pay the 2% as a promotional offer as a favor to the customers when it was their responsibility, to begin with.
The buyer is also required to pay a title deed issuance fee of Dh250 on the day of the transfer of the house. The last step to get your property registered with the Dubai Land Department (DLD) is to pay Dh4000 if the price of your property is Dh500,000 or more.
However, the buyers of the properties priced less than Dh500,000 are supposed to pay Dh2000. For those who have a mortgage on the house, payment of mortgage registration to the Dubai Land Department (DLD) is necessary. These steps can appear to be a bit troublesome at first, but it is all worth it to buy a house in Dubai.
It is important to know that if you have taken out a mortgage on the house, then as a non-UAE national, you must pay 25% of the price in cash to the seller. For UAE-nationals, they need to pay 20% in cash to the seller while the bank pays the rest. The interest rates will vary from one bank to another, so get full information before making a decision.
Courtesy by Airpano
We thoroughly discussed how to buy a house in Dubai, along with stating the whole process of purchasing a property. It is advisable to do comprehensive research on your own to get any additional information that you seek. Doing that can help you go through the process of owing a place in Dubai very smoothly.