Constructed at the crossroads of the globe, Dubai has constantly been expanding. For the last few decades, Dubai has been experiencing an enormous surge in its population because of the huge success in every economic and business sector.
As the business sectors of the United Arab Emirates are growing and flourishing every passing day, the urge for settlements within the nation is also increasing.
People from all around the globe are traveling to Dubai, and some are even planning to build a permanent settlement there. Some of them live as tenants, whereas others have already owned properties and homes.
You might also be someone who is contemplating becoming an Emirati citizen. But have you thought about your capabilities to purchase a house of your own in Dubai? Or are you just planning to live here as a tenant for years? We suggest you take a plunge to own a property and become a house owner in Dubai.
Can you believe that you will have an entire asset to yourself that too overseas? Well, we can. That is why we have brought you here. In this article, we will give you complete guidance just when you are thinking of investing in the real estate market of Dubai, which is ever thriving.
If your calculations seem to be acutely intimidating, we have got you covered. Read the full article to understand the basics of purchasing a house in Dubai and how you can invest without draining great resources.
Things You Need To Know Before Purchasing A House In Dubai
The plunge of advancement to becoming a homeowner from a tenant in Dubai can be extremely challenging and intimidating. If you are a first-time property buyer in Dubai with endless properties for sale, you will face great difficulties in choosing the right house for yourself.
Why Choose Dubai?
Dubai has transformed from a small village on the Arabian Gulf to a bustling, hip, and happening metropolitan hub in an extremely short time. As most of the population in Dubai resides as tenants, purchasing a home is always an open option that will help you save and make more money over time.
And all the residential projects that had stalled previously due to the ongoing pandemic have commenced. So the real estate market is flourishing exquisitely and opening more doors for you to choose from.
What Is The Cost Of Living In Dubai?
The cost of living in Dubai will greatly vary from family to family, depending on the size and the way of living. However, a survey states that Dubai has become even more affordable since 2021. With the high surge in covid cases and the ever-expanding spike of the deadly coronavirus, there has been a great downfall in the prices of education, transportation, food, rent, and properties.
According to the Numbeo data, the approximate living cost of an individual decreased by as much as 89.2% in 2021 compared to the previous year. And the average living cost of a family with four members has decreased by 32.6% compared to the year before.
What Are The Types Of Property Available In Dubai?
Dubai is home to three major types of property agreements. They are:
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Commonhold
Commonhold properties consist of both residential and non-residential units in buildings and apartments. These properties can be updated, bought, sold, or passed on as inherited property, where the owners are required to pay maintenance charges for the public areas and keep all the amenities in good shape.
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Freehold
Freehold properties are very similar to commonhold properties, as the sellers can sell, rent out, renovate or even pass down to their next generation and beyond.
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Usufruct
Usufruct property is nothing but a leased property, just like in the United Kingdom. These types of properties have great limits since they can be rented out for profit, but you cannot share this profit with the original owner of the leased-out property.
How To Buy A House For Yourself In Dubai?
Buying a house can be an extremely difficult task since you have to choose from many options to choose the right one for you. But we have promised to get you covered through the entire procedure of purchasing a house of your own. Thoroughly go through the steps mentioned below to build a perfect idea before you set out to purchase a house in Dubai.
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Finalize And Set A Budget – Down Payment
As a property buyer for the first time in your life, you must be very confused about how to move about. So it is essential to fix your budgets in the first place so that you know how much you can afford and what properties you can associate yourself with.
You can settle for mortgage financing, or you can opt for all-cash transactions, whichever suits you best. If you are thinking of purchasing your property through a down payment, you need to save up a lot of your revenues before it.
If you are not a UAE national and you are willing to purchase a house in Dubai, you need to pay as much as a 25% down payment when you are purchasing for the first time. On the other hand, if you are a UAE national, you need to make a 20% down payment during your first purchase of any property in Dubai. You must remember this down payment rate might fluctuate and shoot up to increase by 10% if the property you are purchasing costs more than AED 5 million.
Many buyers opt for cash transactions while purchasing a home for the first time, as this will provide them with a rapid ROI valuation. However, first-time buyers who opt for mortgage transactions gain greater liquidity and flexibility for the payment of their purchases.
Suppose you are thinking of paying your seller with a mortgage transaction. In that case, you must keep all your valid documents handy so that you can purchase your property as soon as you receive pre-approval of the mortgage from the financial institution.
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Select The Right Property For Yourself
While you are purchasing a home for the first time, you would always want all things associated with your home to be accurate and perfect as per your demands. So you need to look out whether your desirable home is situated just in the right place. And if it has been constructed with the right materials, it can withstand any tough climatic changes or whatever obstacles that impede its way.Â
You must also take into consideration whether your home has a friendly neighborhood along with all the amenities that you will require easy access to. If you see all the things are perfect and meet all your demands, the last thing to consider is the price, whether or not you can afford the property.
So, just before you set off to look out for your first personal property, you should be thinking about whether you will buy a resale property or an off-plan property. Buying a resale property can provide you with immediate possession. In contrast, if you are planning to purchase an off-sale property, you might require to wait for some time before it is ready for you to occupy and settle down. However, this might not always be the case.
Location is another thing that will truly matter to you while you are about to purchase the first home for yourself. You would want your property to be located in such a place where the communication is perfectly visible, and you can connect anywhere and everywhere within the metropolitan hub.
The next thing that you need to look out for is the in-home and external amenities. Check whether they cater to your purpose of settling down in your desired location. You also need to check whether your in-home amenities are in perfect shape and appropriately accessible and usable.
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Search For Your Rightful Community
You will often see that Dubai is overtly populated mostly by people from around the globe more than the native residents. As the nation is thriving to become the most happening place across the globe, greater populations are settling down in Dubai. You will find that Dubai has planned communities for various reasons.
If you are from India and a Bengali, you will find your desired community there. To adjust to the completely new area, we will always suggest you find your ideal community, which already exists in Dubai. In the planned community, you will not only find people speaking your language, but you will also get properties at a very lower price that will suit your taste accordingly.
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Hire A Trustworthy Broker
If you are not capable enough to find yourself the rightful property, you need to hire a broker or a real estate agent who will guide you to find the right choice of property. But before you hire them, get a clear understanding of all the things they have to offer you.
To Conclude
Suppose you are thinking of purchasing a property in Dubai. In that case, we’d say that it is absolutely the smartest wealth-building strategy that you will ever get because the properties of Dubai come at a very low price and are essentially affordable.
