In May 2002 the restrictions on Non-UAE nationals buying freehold property in Dubai was lifted. Ever since, the Dubai property market has been getting hotter and hotter. DEMAND HAS SOARED with some developments returning over 125% capital growth within two years. The option to become a resident as well as the lifestle offered has made Dubai the next best place to live.
At Bfx International, we strive to provide the best customer service for all our clients. We perform checks on Individuals, Developments and Developers before we market their products, minimizing on any risks for our clients as well as protecting our well established reputation. We will sit down with our clients, identify their requirements and then offer a range of options. Being totally independent, we are not tied down to marketing one developers products. We do not operate on a commission based pay so you are sure to be given the best, unbiased advice.
Contracts and Payment
Buying a property in Dubai could not be a simpler process. A simple contract between buyer and seller is all that is required. As most of the properties on sale in Dubai are new builds your contract is likely to be between the developer and yourself however this could also be between a real estate company or an individual organisation or person if this is a resale property.
Payment plans and options vary depending on the developer and time you sign your agreement. Usually, at launch, a deposit between 10 and 15% is required. This is followed by frequent payments until your development is completed and handed over. As time progresses expect your initial deposit to increase to stay in line with the payment plan.
Some developers offer their own mortgages, whilst other developers have had their projects approved by banks for mortgages. These finance options are not available on all developments.
Other Costs
There are only a few costs associated with the purchase and maintenance of your property. The purchasing procedure is somewhat different to buying in other countries like UK for example.
Until Dubais Land Registry comes into full effect, the only real security you have is to be registered with the Developer. The initial purchase is usually free from any developer registration costs. However if you buy or sell, a fee may be payable. There is a Sales Registration Charge payable by the buyer to the Dubai Lands Department. This is usually 2% of the final purchase price and is payable for every purchase.
The use of a Solicitor is optional. As you are buying from a developer there are no land searches possible. A Solicitor will however be pleased to go through your contract with the seller or developer but will however be of little use as the contact cannot be changed. Should you require to seek legal advice, BFX International will be pleased to help you contact a reputable firm.
A residents association will be set up by most developers. The role of this association will be to take responsibility for day to day management of the building and its facilities. For this a maintenance and service charge will be payable. This will usually be priced per square footage so the amount that you would pay would depend on the size of your apartment. This charge will vary depending on where you live and the development. The actual costs will need to be calculated on completion but estimates are between 6-15 AED per square foot.
As the market in Dubai has changed significantly over the last four years, it is important to find the right development at the right price in the right location. This is where BFX Internationals expertise will help and guide you to making the right decision. |
