INVESTMENT GUIDE

HOW TO BUY PROPERTY

01

Finding a professional real estate agent who will work closely with you to ensure that they have a clear idea of your personal preferences and the type of property you are interested in buying is an essential step. When buying from a developer, real estate agents normally work without commission and communicate directly with developers.

02

Choosing a project and property that will match your needs and budget. Estimate how much you can afford. Buyers must keep in mind when purchasing that they will have to pay 4% DLD (“Dubai Land Department”) transfer fee and more administrative fees. If you intend to get a mortgage, then you will probably have to expect a deposit of at least 25% of the purchase price of the property. You will also have to pay interest on the loan, which ranges from 2-4% depending on the loan duration and credit institution.

03

We recommend making a written offer for the property, as properties in Dubai are highly sought after and some lucrative projects sell out literally in a day or a few hours. In this case, it is necessary to issue an EOI (“Expression of interest”) document expressing an interest to buy real estate, including payment of a 10% deposit and presentation of copies of passports and identity cards of all parties whose names will appear on the title deed. That gives you the best opportunity for accepting your offer, priority is always given to those investors who will respond to the offer the fastest.

04

The next step will be to fill in and send the reservation form that presents obligation to reserve the purchased real estate by the developer. In this step you choose preferred unit and pay the fee. The minimum reservation fee is usually 2% of the price of the property and is included in the purchase price of the property.

05

Once both parties agree to the terms of the sale, they are required to sign the Sale & Purchase Agreement. A deposit of 10% is required at this point, if not paid when the EOI is issued. The buyer will then pay the developer all administrative fees, especially the 4% DLD transfer fee. Once all fees are paid, the developer issues a NOC (“Non-Objection Certificate”) to the buyer. After all the necessary procedures are completed, a new title deed is issued in the buyer’s name and the property is officially transferred from the seller to the buyer.

06

For properties under construction, it is standard that depending on the level of completion of the unit you will have to wait 2-4 years to receive the property. The developer in the contract for sale will indicate the estimated date of completion and handover of the property. Once the contract is signed, an “Oqood” document is issued by the Dubai Land Authority, which serves as a temporary registration until the buyer has the title deed.
Once the property is transferred, the Oqood becomes a title deed in the new name property owner.

07

When buying real estate from a developer, the buyer does not have to be at the time of signing the contract of sale physically present. You can buy such a property from the comfort of your home. The developer will send the contract to your home by courier, or you can sign it online only with a copy of your passport provided. No special permits and documents are required, nor is there a power of attorney to act for the buyer. This way of concluding a purchase contract is completely standard in Dubai and you don’t have to worry about it.

08

A real estate transaction in Dubai usually takes four weeks from the date of signing the contract of sale. However, various factors such as time of the year, type of seller, etc. can affect the duration of the entire process. For example, a cash transaction will always be faster than a transaction based on mortgages.