The real estate market in Dubai is the most dynamic in the world, but buying your first property here can be exciting and overwhelming. There is no shortage of agents or projects. There are many things to consider before you buy your first property.
Finding the right agent:
The first and most important step once you decide to buy your first property in Dubai is to find a qualified real estate agent. Instead of settling for just any real estate agent, seek a certified international property specialist (CIPS). This is the only international designation that is recognized by the National Association of Realtors and guarantees that your agent understands international real estate, and it’s crucial once you are trying to explore Dubai’s market.
A RERA-certified agent is also a must; this ensures that he is familiar with the local laws and Dubai Land Department regulations. Most importantly, your agent should have experience in Dubai real estate and understand your personal needs as an investor.
Mona Jalota, Founder and Managing Director, Krypton Global Real Estate says, “The RERA-certified agent can help you navigate the cultural sensibilities of the local market in order to have a successful transaction.”
Goals behind your real estate investment:
One needs to be very clear about what his/her goals are with a real estate investment in Dubai. Are you planning to move to Dubai and secure residency in Dubai through the Golden Visa Program? Are you focused on capital appreciation? Do you want to buy a property for short-term rental or long term rental?
These are some of the questions you need to answer because you take the leap.
Off Plan Properties as an investment option:
Dubai is known for its off-plan projects, where you can purchase properties that are still under construction and benefit from the pre-construction prices. Now it is important to understand how these payment plans work, and the good news is that many of these payment plans come with zero present interest. Typically, you will pay a portion of your property price upfront as a down payment up to 20 percent, with about 50–60 percent divided into the installments over the course of the construction period. This is all with the zero percent interest rate.
Right before the handover, before the final payment is due, you can potentially exercise your financing options, sell your property to maximise your appreciation, or pay the reminder in cash. This is why working with your agent is crucial to ensuring that you are comfortable with your payment schedule and prepared for each milestone.
Industry insiders, like Romaal Patel, Co-founder, The Property, says that Off-plan properties are a great investment opportunity, “Off-plan properties can be a great investment due to lower entry prices and flexible payment plans. However, it’s important to assess the developer’s track record and be aware of potential project delays. If done right, they offer strong capital appreciation opportunities.”
Seen echoing the similar sentiment was Jalota of Krypton Global Real Estate.
“There are both pros and cons to invest in the off plan property market. Even though investors can benefit from flexible payment options and an opportunity for capital appreciation, they need to evaluate the developer reputation and reliability and take into account the market dynamics and potential growth. Having an experienced property consultant will always help in determining the pros and cons and making a sensible decision.”
Location counts
Dubai is vast and each area has something unique to offer but ultimately, it’s all about the location. You should invest with the developer who has a proven track record for on-time delivery, a strong financial profile with the Dubai Land Department, and high-quality developments. This is critical when it comes to ensuring your property holds value and increases in resell or rental potential.
