Buying a property in Dubai is very easy only when you have a right property advisor. Dubai’s property market is famous for its high returns as compare to other countries but at the same there is high risk if you will choose wrong property so you must get services of a trustworthy and an experienced agent.
BIP investment & Properties is one of the trustworthy and professional property advisor company offering its services in Pakistan and UAE. Our target is to provide right properties to our investors and End Users in a professional way.
Dubai is one of the best place in the world for real estate investment. These are the factors that attract investors; High returns, community choices, Expo 2021 optimistic trends, tourism industry, happiness city, low crime rate, amazing infrastructure, no tax on residential property and easy property management services for overseas clients.
Managing a property is very easy in Dubai. Overseas investors can sign an agreement with property management companies which are charging 3%-7% of the rental income and if rent is low than AED 3,000 minimum.
Dubai is one of the best place for buying property without any hassle. The process of buying a property can be completed in 4-5 working days that include; Visiting Property, Signing MOU, Applying for NOC and going to Trustee office for transfer. In Trustee office (Dubai Land Department’s Authorised Agency) takes 1-2 hours to transfer the property and to issue title deed.
An investor must keep in mind these factors before buying a property for high return on investment because your return depends on the property location, property size, buying price, service charges, community, public transport, life of the building etc.
It’s better to proceed through an experienced real estate broker who can offer you properties according to your requirement.
The process of buying a residential property in Dubai is quite simple. Here is step by step guide;
- Selection of property
- Both parties (Buyer & Seller) discus and agree on their terms and conditions
- Both parties Sign MOU (Memorandum of Understanding) and both parties pay a 10% deposit cheque that will be held with the agent’s company.
- Both parties go to developer’s office to apply for NOC (No Objection Certificate) to sell the property. In some societies both parties need NOC from master community as well.
- Developer will issue the NOC after collecting all the outstanding dues for service charges and if any damage to property.
- After getting the NOC, both parties will go to Real Estate Trustee Office to transfer the property. Where authorize person will collect the documents from both parties process the transfer. It take 1-2 hours maximum to transfer the property and buyer will get new Title Deed at the spot.
- NOC Fee will be Between AED 500 to AED 5,000.
- Agency professional fee 2% of Sales Value
- 4% from selling price + 580 AED (If Apartment, Villa) or + 430 AED (If Land) (Manager chq).
- Trustee Office Fee: if property price is less than 500,000 than Fee is AED.2,000 AED + 100 AED (5%VAT). If property price is equal or more than 500,000 then Fee is AED 4,000 AED + 200 AED (5%VAT)
- DEWA (Dubai Electricity and Water Authority)
Selling a property is very easy in Dubai. It is recommended that you should proceed through a real estate broker who has knowledge for whole transfer process and also fulfill the legal document requirements in case of any dispute from buyer or seller side.
As real estate companies are having large scale marketing that helps broker to market your property and get more potential clients to sell the property in short time.
Yes, an owner can rent out his property without getting the services of an authorize broker. But it is recommended to obtain the services of government authorized broker so he can secure both tenant and landlord according to updated law and regulation implemented by Dubai Land Department.
Dubai’s real estate is the backbone of economy and this market is renowned for its high returns and quick resale. Return on investment in real estate sector in about 8% – 10% and sometimes more. All it depends on the property you are choosing and location. An experienced broker can help you in getting a good deal with high returns and less risks.
Below are the reasons why a landlord should hire a real estate broker.
1. Saving time & Money
2. Getting access to multiple viewings
3. Getting advice based on real data CMA (Comparative Market Analysis)
4. Having extensive paperwork sorted
5. Negotiation skills to handle transactions against multiple expat backgrounds
6. Tapping into a network of useful contacts
7. Getting a proactive and transparent service
8. Bring a human touch to the proceedings
Below are the documents required for buying a property in Dubai.
- Original Title Deed
- Original NOC from Developer
- Original Passport (Buyer and Seller)
- Visa and Emirates ID (if buyer or Seller is resident in UAE)
- Signed Form F (Signed by Buyer and Seller)
Investor should be very careful when planning to buy off plan property. The most important thing to keep in mind while paying the token/booking money, it should be on the name of Escrow Account (account under DLD).
Secondly, investor can look for these factors such as payment plan, property size, service charges, location, time to completion, expected price appreciation, expected return, community, developer, public transport, area growth in next 5 years and try to get benefit from an offer if going on at the time of buying.
Once, you get property options from your broker go through all option and check for above factors and once you are satisfied with required information then make the payment online directly to developer (if trustworthy) or write a cheque on the name of Escrow account than you will get Sale & Purchase Agreement to sign and send it back to developer and after this once you will get your Oqood (A document issued by DLD declaring your ownership) you will become owner of that property and after that you will pay the installments and once all payment is done you will get your Title Deed.
Note: Investor can get more benefit if he will buy at prelaunch price.
No. the government is charging 5% VAT only on commercial property income not on residential properties.