If you look at the property market of the UAE, you will see it moving from strength to strength.
The flourishing economy and the increasing population has acted as a potential growth driver to the real estate market of the country.
Due to the attractiveness of the country, many domestic and international people have invested in property in the UAE.
At the same time, it will be also wrong to get carried away by the attractiveness of the property market and invest in one of the properties straightaway. That way, you might end up purchasing the wrong property.
As a follow through, you will repent later. Therefore, you should avoid wrong purchase decisions. And, for that, we recommend you to consider the following factors beforehand.
List Your Objectives
It is perhaps the first thing to do before starting your property buying journey. You should list your objectives of buying the property. It will help to spot the right property.
Again, you should be careful while setting your goals. It will help if you explore answers to a few questions as that act as the foundation to your goal setting.
The relevant questions are:
- Will you use the property for your own living or rent it out?
- What will be your investment time-frame?
- What is your expected return on investment?
After you have the corresponding answers, you will have sufficient mental inputs to decide the type of property , area, investment, and whether off-plan or readymade.
Research The Market
Doing research is of paramount importance before finalizing one of the properties for sale in UAE.
You should assess the market and take into consideration all the essential factors that can impact your property investment.
You should assess factors, such as
- The possible rental yield if you rent out the property
- The possible demand for properties in the area in the future
- Whether the community is well-developed and well-connected
- The available amenities in the area
The assessment of these factors will help to figure out the right property. Again, you should determine your spending capacity. And, you should look for properties that fall into your budget.
You should select a property that can meet all of your requirements.
Freehold and Non-Freehold
The difference is a must to know, especially if you are a foreigner. There are a large number of Freehold areas in the UAE where foreigners can own properties. But things with non-freehold areas are different.
In non-freehold areas, only GCC nationalities can buy properties. So, you should not look at properties in non-freehold areas if you are an outsider to GCC.
But, things are in a changing mode. Recently, many projects are dedicated to investors of all nationalities in non- freehold areas.
Therefore, do proper research on your eligibility to invest in a property in a non-freehold area in the UAE.
There is also another type of property ownership in the UAE that foreign investors should know.
It is called leasehold ownership. And leasehold ownership is equivalent to taking the property on lease for 99 years.
So, you should tabulate all your goals before buying the property as that will help you to select the right property type.
Organize Your Finance
You should organize your finances before purchasing a property in the UAE. If you are a first time buyer, you should know that the initial deposit is not the only money you should keep ready.
You should know that there are many types of fees to be paid as part of the property buying process.
The various expense include transfer fee, agency fees, sales fees, mortgage arrangement fees,
And mortgage arrangement fees.
Apparently, you should keep enough money ready to pay these fees.
Purchasing a property in the UAE is not a straightforward affair as it seems to be. There are many twists and turns to make the purchase process complicated. And, things can happen that you might end up buying the wrong property. Therefore, you should follow the steps outlined in this article before actuating your property buying process.
Also, you should go through a trusted property portal, such as Toplatest, to keep yourself updated on the latest property trends in the country.