Have you ever thought about diversifying your portfolio or buying a home to settle in with your family? The UAE is the hub of opportunities and brings fine options to the table for those who are ready to invest in the real estate market. If you seek a peek into what goes on as you acquire new properties in the UAE, you have reached the right place.
Whether it is an apartment in Dubai or one of the freehold villas in Sharjah, whatever your pick is, we are here to guide you through. As an expat in the UAE, you need in-depth knowledge about settling in the market. With an array of options, legislations, and rules, we have summarized it all here for you. Read on to quench your thirst for knowledge as you explore the steps for acquiring new properties in the UAE.
#1 – Complete your research and define your criteria
The first and foremost step you will need to take en route to acquiring new properties is to complete the research. If you are an expat or a resident who has entered the real estate market for the very first time.
You will need to complete your research and decide the kind of property you are looking for. Another step to take is to define the criteria for this property acquisition in the UAE. After all, options range from freehold villas in Sharjah to condos in Dubai; which one will be your ideal pick?
When deciding on an apartment, townhouse, or standalone villa, ensure that you have set realistic property price expectations. Be sure to have a look at factors like location, view, amenities, and community before making a firm decision about your acquisition.
#2 – Find a real estate agent
When you begin your search for a new property, you must find the right agent. You need someone who knows about the intricacies of the UAE real estate market. Someone who will tell you exactly what you want and guide you thoroughly through the process.
Your real estate agent should fully commit to helping you achieve your goals. Whether your aim is to acquire new property in the UAE to diversify your portfolio or you plan on moving into the house.
That person should be one who knows exactly how to assist you throughout the process. Another point to remember is that the real estate agent should be licensed and have a proven record of success.
#3 – Leasehold vs. freehold
When acquiring new property in the UAE, you must decide whether it will be a leasehold or freehold. The difference between the two is significant in nature. Freehold is often found to be the most appealing choice, given the fact that it provides absolute ownership over the property.
If you want to avoid complications and disappointments while acquiring new properties in the UAE, then consider your options beforehand. Decide on the real estate property that would best suit your needs ahead of time and ensure that the agent you have understands your needs.
#4 – Legal matters
In a lot of freehold areas of the UAE, being a resident is not a prerequisite. So if you’re planning on diversifying your portfolio in the UAE without residency, then the option is viable. In a freehold location, anyone with a valid passport can buy a property. So now the ball is in your court. You will decide which freehold area best suits your long-term goal as you acquire a new property.
#5 – Timeline and schedules
In the Emirates, like Dubai, an average property transaction takes almost 30 days to complete from the day Agreement for Sale is signed. That being said, different variables tend to have an influence on the predetermined timelines.
Everything from the type of seller and the time of the year can influence the property transaction timeline. For example, you need to remember that if you go for a full cash-to-cash transaction, then it will go faster as compared to a mortgage-buyer to mortgage-seller transaction. Keeping these things in mind, remember to give yourself a schedule accommodating for any ups and downs.
#6 – Protocol and Procedure for buying
One of the most crucial parts of acquiring real estate properties is gaining knowledge related to the protocols and procedures conjoined in the process of buying. The steps of the procedure are as follows;
- Once the buyer and seller agree upon terms, they will need to sign an Agreement for Sale and/or Memorandum of Understanding (MOU). At this point, a deposit, usually 10%, is also required as proof of commitment.
- The seller then has to settle any outstanding fees to the developer, such as service charges, and apply for a NO Objection Certificate (NOC) from the developer that grants the right to sell off the property against a one-time fee.
- If the buyer aims to purchase with a mortgage, then the lender bank will be involved throughout the process. Suppose the seller has a mortgage on the property. In that case, the buyer will have to settle the seller’s mortgage before the NOC application.
- Once the NOC has been issued, ownership can be officially transferred.
#7 – Perform document check
While acquiring a new property in the UAE, you must pay heed to the documents you will need. The following documents are imperative if you are looking forward to a seamless transaction.
IDs of buyers and sellers
- Property title deed
- NOC from developer
- Seller service charge clearance letter
- Bank offer letter to the buyer (in the case of a mortgage buyer)
- Proof of mortgage settlement
- Final bills: DEWA, A/C, etc
To conclude
Acquiring a new property in the UAE as an expat or a resident requires time and monetary funding. If you are a first-time buyer, then knowing what goes behind the scenes is crucial for you.
Now that you know all of the steps in detail, along with tips and tricks for a seamless transaction, you can easily move ahead and broaden your portfolio. The UAE is filled with numerous real estate options, with an array of choices at your fingertips; make a choice that would align with your long-term goals.
