Top mistakes when buying real estate in Dubai

Buying a property in the UAE is a responsible step that requires prior preparation. This city with excellent investment opportunities attracts more and more buyers every year. However, there are a number of mistakes that novice investors make when buying a house or apartment in Dubai. We will tell you about the most common difficulties and how to avoid them in our material.

Overview of common mistakes when buying real estate in Dubai

To understand how not to make a mistake when buying a property in Dubai, we suggest considering each of these aspects separately.

Insufficient market research

Refusal to get acquainted with the market and its features before purchasing real estate in the Emirates is a common phenomenon. This is a wrong strategy because the local market is dynamic. Prices are constantly rising, new projects are emerging. Without immersion in the context, the buyer risks missing the latest information and making a bad investment decision.

For the transaction to be successful:

Check out the prices in different areas of the city, as well as with different types of housing. You can use specialized analytics or consult with an experienced realtor.

Talk to people who have already purchased real estate in Dubai, listen to their advice and positive experiences.

Ignoring the characteristics of an object

The next point in the top mistakes when buying real estate in Dubai: some investors do not take into account the time of construction and location of the facility, the infrastructure of the area, the availability of amenities and other significant characteristics. This leads to:

financial difficulties. Secondary housing may require additional costs for repairs or upgrades. If the buyer does not take these aspects into account, the additional costs will be an unpleasant surprise;

problems with renting and weak cost growth. If a residence has hidden or obvious disadvantages (for example, it is located in an area with poor transport accessibility), this will reduce its attractiveness in the eyes of potential tenants and buyers and reduce its value on the market.

Recommendations that will help you avoid this mistake when buying a property in Dubai:

Visit the property in person or use the services of a virtual tour to get an idea of the characteristics of the accommodation.

Think about how you will use the purchase in the future. Check if it fits your goals and lifestyle.

Inattention when checking documents

One of the biggest mistakes that can lead to unforeseen consequences. Before concluding a transaction, it is important to carefully check the purchase and sale agreement, the certificate of ownership (Title Deed for completed projects, OQOOD for those under construction) and other documents related to the object.

Consult with a lawyer or contact a broker to make sure that the documentation is correct and complies with local laws.

Топ ошибок при покупке недвижимости в Дубае

Incorrect estimation of future expenses

In addition to direct costs, there are a number of additional costs when buying real estate in Dubai. In particular, these are registration fees, utility bills, and maintenance fees.

Among the most significant expenses:

one–time fee to the Dubai Land Department (DLD) – 4% of the cost;

the fee for the registration of the object is from 550 to 1100 $;

The agent’s commission is 2% (it can be 0% when buying a residence under construction).

On average, additional costs amount to about 4.5% of the amount in the primary market and about 6.5% in the secondary market.

Make sure that you have the funds to cover all mandatory payments.

Buying from an unreliable seller

The UAE is considered one of the safest countries in the world. However, it is extremely important to make sure that the seller is reliable before deciding whether to buy a property in Dubai from him.

Make sure that the seller legally owns the property and can provide a certificate of ownership registered with DLD.

Unrealistic expectations

Many buyers have unrealistic expectations about the potential profitability of the object, for example, that their investments will increase in price by 100-200% or bring ultra-high profits in the shortest possible time. However, such expectations may not be feasible. As a result, the buyer is disappointed.

Is it possible to buy a property in Dubai and be satisfied with the result? Absolutely! To do this, it is necessary to take into account the realities of the market. The average increase in the cost of mistakes when buying property in dubai projects under construction from the excavation stage to completion is 20-30%. When renting out ready-made housing for long-term rent, you can expect a payback of 5-8% per annum. This is real data, which can vary up or down. Conscientious agents will help you figure out all the details and choose the option that will be ideal for you.

Lack of a backup plan

Buying a property is a major financial investment, and there is always a risk of unforeseen circumstances. Having a backup plan, you will always be ready for different scenarios.

You should not rely on an investment object as the only source of income. For example, if the rental market is temporarily oversupplied, this may affect current profitability. If you want to resell your home during a market downturn, you will not be able to make the expected profit. In both cases, the ability to wait out a difficult period will help reduce or completely eliminate risks.

To protect yourself, study the specifics of buying real estate in Dubai. Keep in mind: if the facility is under construction, the speed of its subsequent lease will directly depend on the completion date. The activities of local developers are controlled by strict legislation – there are no unfinished buildings here. However, the completion date may be shifted up to 1 year. This should also be taken into account.

Ignorance of the law

Carefully study the laws governing the purchase of residential and commercial properties, depending on the type you are targeting. For example, you can rent a commercial space here not to anyone, but only to a tenant with a business license. In addition, not every district of the emirate has freehold zones where foreigners can purchase real estate in full private ownership. Do not hesitate to ask questions to the realtor and the owner – this will help you avoid problems in the future.

Hasty purchase

Investors are often under pressure due to potential price increases or competition from other buyers. However, this approach may lead to you buying a house in Dubai that does not meet your needs or does not provide the expected return.

To avoid this mistake, do not let emotions prevail over common sense. Approach the selection process responsibly, taking into account your individual circumstances and preferences.

Топ ошибок при покупке недвижимости в Дубае

Practical tips to help you avoid mistakes when buying

Our recommendations will help you avoid rash decisions, secure your finances and eventually become the happy owner of highly liquid and profitable housing:

Conduct a detailed market research, study current prices, sales and rental statistics, as well as various areas and their potential.

Consider the additional costs.

Avoid hasty decisions.

Develop a backup plan taking into account possible unforeseen circumstances or changes in the economic situation.

Seek the help of qualified professionals to check the legal purity of the facility and comply with the necessary legal procedures.

Conclusion

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