How to buy a property in Dubai

Has the Dubai property market been on your radar?

Have you been thinking of capitalising on those rising numbers and investing in a property in Dubai? Or you might be thinking of finally purchasing that dream home. While the pick is yours - buying a property in Dubai can seem complex if you do not have the right professional guidance and the right broker by your side!

So, put those worries to rest, and let us guide you on just how easily you can buy your first property in Dubai.

Step 1 – Buyers should get their finances in place

While house-hunting on property portals can definitely be a fun task, before looking at properties, it is essential to find out how much money a buyer has to invest.

This is mainly to avoid the heartache of finding your dream home only to discover that it is out of your budget. If you are thinking of purchasing a property on a mortgage, we advise getting a pre-approval sorted before searching for properties to have a figure locked in.

We recommend all our first-time buyers to speak to a mortgage broker, as they are experts in their field and can talk you through all costs involved in buying your first property in Dubai. They will instruct you on the down payment, monthly repayments and all hidden costs that come with stepping onto the Dubai property market, and mainly what mortgage type works for you.

Since the down payment deposit is not the only fee that buyers need to think about; there are transfer fees, agency fees, sales progression fees, mortgage arrangement fees and mortgage insurance fees, it's always crucial to have a pre-approval in hand. This will bring buyers peace of mind when negotiating with sellers and speaking to agents. You will know exactly what you can afford, and what is achievable so you can begin the search for your dream home stress-free!

Step 2 – Find the right agent

It is paramount that a new buyer finds an agent who they can trust and build, not only a professional but friendly relationship with.

Buying a property for the first time is an incredible achievement and you should ensure you are investing in the property that is right for you with an agent that you feel you can have an open and honest conversation with.

The right agent possesses a wealth of knowledge in their respective area and can tell you about the market trends of previous years and predictions for the years to follow.

Step 3 – Create a list of essential property features

Once buyers have a budget locked in, the next step is to sit down and make a list of must-have property features. This may be the number of bedrooms required, the driving distance to school or a workplace or whether you prefer a villa or an apartment.

As soon as you have the essentials mapped out, then you can start thinking about what you would like your property to host. It may be a pool, a separate kitchen and dining area, an extra bedroom or a large garden. This will help your agent find the RIGHT property for you.

During the viewing process, what helps is to keep an open mind and not rule out a property because of one factor – your agent may be able to come up with a solution for you.

Step 4 – Area search

The area your home is in is very important but making this decision could come down to the finances you have available.

If it is crucial to have three bedrooms because of the size of your family, but the three-bedroom properties in your favoured area are out of your budget, then it may be time to look at other options. There are so many upcoming areas in Dubai with affordable housing, such as Damac Hills 2, Mira, Remraam and Town Square to name a few.

At Allsopp and Allsopp, we always advise clients to drive around different areas to get a feel for a community. You can drive from the community to different locations to also get an idea of the convenience within the community as well as a feel for being around.

You can check the community's property prices and recent transactions on our DataHub.

Step 5 – Understand the process and make the right offer

Once you have found an agent who you can trust, then it is crucial to begin speaking on the entire process from start to finish - From how to make an offer, the negotiation process, the paperwork required, the NOC, transfer appointments and the handover.

This will give you peace of mind and allow you to plan ahead smartly with your purchase.

Once you have found a property to buy, and have made a decision on what you would like to offer - Put the offer to your broker and they will start the negotiating process with the seller. This is the most nerve-racking time, but your Allsopp & Allsopp broker has it under control and will keep you updated imminently with every advance!

Step 6 – Sign the agreement and progress the sale

The Agreement of Sale is the first stage in the formation of a formal contract between a buyer and a seller. It is a binding agreement between the buyer and seller outlining the terms and details of an understanding, including each party's requirements and responsibilities.

Your broker will run through this with you once everything is locked and agreed upon to ensure you are happy to go ahead before moving onto the transfer stage of the sale. The agent will create a Unified Form F which is generated from the DLD REST App by the broker. The United Form F is a form of contract, which once signed will lead to the final step of the sale - which is sales progression.

Our Allsopp & Allsopp in-house sales progression team will assist you through the sale process from the No Objections Certificate (NOC) from the developer through to the transfer.

Your sales progressor will make sure all of your documents are in order before beginning the process in order to avoid delays.

And voila, you have purchased your first home in Dubai!

What are some common FAQs to know about during your first purchase?

Can you obtain a mortgage as a foreign national for a property in Dubai?

If you are thinking about buying a property in Dubai as a foreigner, it is crucial that you work with a mortgage broker, or our in-house mortgage team to assist you through the process.

It is simple but there are a few things foreign nationals would have to keep in mind ahead of their application such as the tenure of the mortgage, the down payment, the loan-to-ratio value and eligibility criteria may differ when compared to resident mortgages.

To learn more about the foreign investor’s mortgage process in the UAE, you can read our guide here.

Can you get a Golden Visa through a property purchase in Dubai?

A popular attraction for most buyers and investors in Dubai is obtaining the Golden Visa which can be done through a property purchase of AED 1 million or higher. And yes, you can still be eligible for this visa if you have a mortgage on your property.

Hope you found this guide helpful!

If you are thinking of buying, then drop our in-house team of sales experts a line to find your dream home!