Understanding the process of buying property in Dubai is paramount to making informed decisions and achieving your real estate goals. In this comprehensive guide, we focus on the key steps involved in Dubai property purchase process to offer invaluable tips for prospective buyers.
In the bustling metropolis of Dubai, where towering skyscrapers grace the skyline and pristine beaches beckon, the dream of owning a piece of this vibrant city becomes a reality for many. But amidst the allure of Dubai’s real estate market lies the intricate process of purchasing property, a journey that requires careful navigation and understanding of the nuances involved.
The process of buying property in Dubai differs if you are buying primary or secondary market. Primary often referred as off-plan is technically any first recorded sale or purchase directly from developer. Secondary market usually referred as ready property but more precisely it is any purchase from an individual owner.
Therefore we break down the full process to buying property from primary and secondary markets in Dubai.
Process of Buying Property in Dubai – Primary Market (Off-Plan)
The process to buy a brand new property is very convenient. It offers multiple financing methods (installments, payment plans, mortgage, cash).
Furthermore, everything from contracts, Dubai Land Department registration, paperwork, identification documents, etc are taken care of by your real estate agent and developer. Therefore you don’t even have to be physically present in Dubai, unless you want to.
EOI (Expression of Interest) Process
EOI submission is done by providing your documents (passport copy) and a pre determined payment. The amount of payment is determined by the developer, and it is fully refundable in case you are not provided with satisfactory unit.
Read the full article about EOIs to understand why exactly is Expression of Interest aka EOI paid.
Booking & Downpayment
If you got the unit after submitting the EOI and you are satisfied with it, that unit is now booked for you using the funds provided for EOI.
In some cases where you do not need an EOI you can proceed with booking directly. After finding a suitable property you want to buy you will start off by paying a reservation amount usually referred as booking. That will secure the unit for you and you can have few days to transfer the balance of the downpayment.
Reservation amount can be anywhere from 2% of the property price and above, it depends on the amount accepted by the developer. You will be signing a reservation or booking form at the time of the booking as well. Your receipt for the initial payment will be provided as soon as the funds are reflected on the developers account.
In case you opted for an off-plan property or project that offers payment installments downpayment is most commonly 20% of the property price.
DLD and Administration Fee
Next, you will be paying what is known as 4% DLD.
Dubai Land Department Transfer Fee (also referred as Oqood registration or DLD) is 4% of the property price. Along the previously mentioned 4% DLD there is also an Administration Fee. Administration Fee can be anywhere from AED 1,092/- to AED 5,000/- used for paperwork including your SPA, Title Deed and so on.
4% DLD and Admin fees are always paid along with the downpayment. They are paid on the developers corporate account as the developer needs to transfer the funds to Dubai Land Department upon submission for property title transfer.
SPA Agreements
After signing it and taking care of the previous steps your SPA (Sales & Purchase Agreement) will be ready. This is your official contract of purchase which will be signed by you and developer in two copies and you will receive your copy. Meanwhile you will be continuing the installments as indicated on the payment plan.
A worthy mention is also that buying a primary market property actually has a lower transaction cost than secondary market.
Along with that, we do not charge agency fees or commissions on primary property sales.
In order to make a perfect investment or buy your dream home in Dubai Contact Us here.
Handover
At time when the building is completed, the developer receives BCC (Building Completion Certificate from DLD), you will be informed. You can then complete the handover installment and schedule the appointment for snagging.
Snagging is the check-up process that everything in your new apartment is delivered and functions as it should be. In case something is wrong, for an example you find a cracked tile or loose cabined door, developer will make the necessary amendments free of charge. Upon taking handover you also have a 1 year full warranty on everything in the apartment and 10 years structural warranty by law.
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