To successfully purchase property in Dubai and avoid unpleasant moments, you need to be aware of the most common mistakes made by foreign buyers.
Mistake 1. Failure to research the property market
The first and perhaps most common mistake is a lack of careful planning and market research. Many people make a hasty decision to buy a property, neglecting important details.
What are the dangers? Ignoring property market trends can lead to dissatisfaction with the purchase in the long run. Factors you didn't consider at the outset may come back to haunt you later. For example, you may have always dreamed of living in a family neighbourhood with parks within walking distance, but because you did not know the market, you bought an apartment in the business district. This mismatch between expectations and reality can have a major impact on your day-to-day life, and halve the enjoyment of your purchase.
The solution. Before buying an apartment in a residential complex, it is necessary to study information about the developer, look at his portfolio, read reviews and recommendations of other buyers. It is also important to know the characteristics of the infrastructure in the area: the location of the complex, the availability of public transport, the proximity of shopping centres and educational institutions.
What are the dangers? Ignoring property market trends can lead to dissatisfaction with the purchase in the long run. Factors you didn't consider at the outset may come back to haunt you later. For example, you may have always dreamed of living in a family neighbourhood with parks within walking distance, but because you did not know the market, you bought an apartment in the business district. This mismatch between expectations and reality can have a major impact on your day-to-day life, and halve the enjoyment of your purchase.
The solution. Before buying an apartment in a residential complex, it is necessary to study information about the developer, look at his portfolio, read reviews and recommendations of other buyers. It is also important to know the characteristics of the infrastructure in the area: the location of the complex, the availability of public transport, the proximity of shopping centres and educational institutions.
Mistake 2. Buying property without an agent
If you are familiar with the Dubai property market and speak fluent English, you can certainly try to buy a property on your own. However, you will need to study all the terms and conditions and complete the transaction, so your physical presence in Dubai will be necessary.
What to expect. If you hope to do without the help of an agent, you will be depriving yourself of a large number of favourable offers and limiting your own choice. The fact is that the property sales system in Dubai is different from other countries. Here, some projects are "launched" before the official public launch, i.e. they are sold through closed events. And only those agents who have built up a relationship of trust with the developers are allowed in. For ordinary customers, the door is closed.
The solution. If you want to take advantage of exclusive offers, you need a good real estate agent. A specialist will make sure that everything goes smoothly and will save you time and nerves. And if for some reason you are unable to fly to Dubai, you can always complete the transaction remotely with the help of an agent.
What to expect. If you hope to do without the help of an agent, you will be depriving yourself of a large number of favourable offers and limiting your own choice. The fact is that the property sales system in Dubai is different from other countries. Here, some projects are "launched" before the official public launch, i.e. they are sold through closed events. And only those agents who have built up a relationship of trust with the developers are allowed in. For ordinary customers, the door is closed.
The solution. If you want to take advantage of exclusive offers, you need a good real estate agent. A specialist will make sure that everything goes smoothly and will save you time and nerves. And if for some reason you are unable to fly to Dubai, you can always complete the transaction remotely with the help of an agent.
Mistake 3: Wrongly formulated purpose
Many people are vague about the purpose for which they are buying a property. This is wrong, because the criteria for choosing a property to live in are very different from those for an investment. If you are looking for a home for yourself, you will look at things like the view from the window, the size of the kitchen and bathroom, and the layout. But if you are looking for a home as an investment, the selection vector is likely to lean towards profitability alone.
What's at risk. Choosing a property with the wrong purpose at the outset can distract you from your real needs. There is a different investment strategy for each goal, so before investing in an apartment in Dubai, it is important to answer the question "What am I buying it for?
Decision. Everyone has their own goals and proposed circumstances on which to base their choice of home. For example, a family with children is unlikely to prefer a studio apartment with minimal living space. However, if the ultimate goal of buying a home is to rent it out, then you should focus not on yourself, but on potential tenants. For example, a studio in the city centre is ideal for renting to young professionals or tourists.
What's at risk. Choosing a property with the wrong purpose at the outset can distract you from your real needs. There is a different investment strategy for each goal, so before investing in an apartment in Dubai, it is important to answer the question "What am I buying it for?
Decision. Everyone has their own goals and proposed circumstances on which to base their choice of home. For example, a family with children is unlikely to prefer a studio apartment with minimal living space. However, if the ultimate goal of buying a home is to rent it out, then you should focus not on yourself, but on potential tenants. For example, a studio in the city centre is ideal for renting to young professionals or tourists.
Mistake 4: Hoping to buy a villa for the price of a studio apartment
The cost of property in Dubai, like anywhere else, depends on the location, the infrastructure of the neighbourhood, the developer, the availability of fixtures and fittings and other important factors.
Threats. If you are offered a luxury property at a low price, consider whether they are trying to scam you. For example, a studio apartment in the Palm Jumeirah community will cost much more than the same size property in the residential district. And you will never buy a villa in Dubai (or anywhere else in the world) for the price of a one-bedroom apartment.
Solution. When choosing a property, consider whether the cost is reasonable in relation to the market. If in doubt, seek expert advice.
Threats. If you are offered a luxury property at a low price, consider whether they are trying to scam you. For example, a studio apartment in the Palm Jumeirah community will cost much more than the same size property in the residential district. And you will never buy a villa in Dubai (or anywhere else in the world) for the price of a one-bedroom apartment.
Solution. When choosing a property, consider whether the cost is reasonable in relation to the market. If in doubt, seek expert advice.
Mistake 5: Misunderstanding the number of costs involved
When investing in property in Dubai, many people expect to spend a certain amount of money. And often forget that the various stages of buying a home come with unforeseen costs.
What to expect. For example, you should expect to pay 4% of the value of the property to the DLD (Dubai Land Department). You can also expect to pay small amounts for administration and registration fees. You can read more about all the costs involved here.
Solution. Before buying a property in Dubai, it is advisable to do a thorough analysis of your options and draw up a budget to avoid financial difficulties in the future.
What to expect. For example, you should expect to pay 4% of the value of the property to the DLD (Dubai Land Department). You can also expect to pay small amounts for administration and registration fees. You can read more about all the costs involved here.
Solution. Before buying a property in Dubai, it is advisable to do a thorough analysis of your options and draw up a budget to avoid financial difficulties in the future.
Conclusion
Based on the mistakes made by foreign buyers, we would like to provide you with a short checklist before closing a deal:
- Study the Dubai property market and its trends;
- Decide on the end goal of the purchase;
- In such a responsible business as buying a property, it is important to have a "safety cushion" prepared in advance. It is better to set aside money for unexpected expenses than to go into debt because you have not anticipated additional costs.
- Find an experienced professional. It is difficult to buy property in Dubai on your own because of the many pitfalls in UAE legislation. It is better to have the nuances explained to you by someone who knows.