Guide to buying an apartment in Dubai

Checklist to buy an apartment in Dubai

Before beginning the process of buying an apartment in Dubai, it's essential to have a clear checklist to help you understand exactly what you are looking for. Here’s some of the key factors you need to consider:

1. Determine your budget: Calculate how much you can afford to spend. This should include the initial down payment, mortgage payments (or payment plan installments if buying off-plan), and additional costs such as agency fees, property registration and ongoing maintenance.

2. Mortgage pre-approval: If you plan to buy an apartment with a mortgage, it's crucial to get pre-approval from a bank. This will help you understand your borrowing capacity and set an appropriate budget. 

3. Location: Dubai is a sprawling city with a diverse array of communities. Research different areas to find a location that suits your lifestyle and investment goals.

4. Property type: Apartments come in a range of sizes and layouts, from cozy studios to huge five bedroom penthouses. Decide on the type of apartment you want before you begin your search. 

5. Developer reputation: Check the reputation of the developer and the quality of their previous projects.

6. Legal documents: Make sure you have all the necessary documents, including your passport, residency visa, Emirates ID, and proof of income.

Steps to take for buying an apartment in Dubai

In this section of our guide to buy an apartment in Dubai, we consider the steps to take to ensure a smooth and successful purchase. These include: 

1. Research the market: Start by researching the Dubai real estate market to understand the different communities and property types, current trends, and prices. 

2. Hire a real estate agent: Work with a reputable real estate agent who can guide you through the process of buying an apartment and help you find the right property.

3. View Properties: Make sure you visit multiple properties to get a good understanding of what’s available in your budget and to find a suitable property that matches your preferences.

4. Make an Offer: Once you find a suitable apartment, make a formal offer to the seller. Your real estate agent will negotiate on your behalf to secure the best deal. 

5. Sign a Sales Agreement: After agreeing on the price, both parties will sign a Sales and Purchase Agreement (called a Form F) outlining the key terms of the sale. 

6. Pay the Deposit: Typically, a 10% deposit is required to secure the apartment.

7. Finalizing the Purchase: Work with your real estate agent and a conveyancer to complete the necessary paperwork for the transfer. 

8. Transfer of Ownership: You and the seller will visit a an approved property registration trustee office to pay the remaining balance and complete the transfer process. At which time, a new title deed will be issued in your name. 

Can foreigners buy an apartment in Dubai?

Yes, foreigners can buy apartments in Dubai. The Dubai government allows foreigners to purchase property in designated freehold areas, even if they are not a resident of Dubai. These freehold areas include popular locations such as:

• Downtown Dubai

• Dubai Marina

• Arabian Ranches

• Palm Jumeirah

• Jumeirah Village Circle 

• Jumeirah Lake Towers

The process for foreigners buying property is relatively straightforward, making Dubai an attractive destination for international investors.

Benefits for Foreigners Buying an apartment in Dubai

There are many benefits of buying an apartment in Dubai that attract foreigners from across the world. These include: 

• Tax-free: Dubai is a low tax environment with no property tax, income tax, or capital gains tax.

• High rental yields: Dubai offers higher rental yields than many other major global cities, with typical yields of 6-8%, providing a good return on investment.

• Residency visa: you can qualify for a long-term residency visa by investing in property in Dubai

• World-class amenities: Dubai offers a great lifestyle, with access to world-class amenities, including shopping malls, restaurants, beaches, and recreational facilities.

• Stable economy: Dubai's strong economy and political stability make it a safe and secure place for investment.

• Strategic location: Dubai's location between Europe, Asia, and Africa make it an ideal base for business and travel.

Areas to buy an apartment in Dubai with Engel & Völkers

Engel & Völkers offers a wide range of properties in some of the best areas in Dubai. Here are a few top locations to consider:

• Downtown Dubai: Known for the iconic Burj Khalifa and Dubai Mall, offering luxury apartments with stunning city views.

• Dubai Marina: A vibrant waterfront community with high-rise apartments, dining, and entertainment options.

• Palm Jumeirah: An iconic artificial island offering exclusive beachfront apartments with breathtaking views.

• Jumeirah Lake Towers (JLT): A popular residential and commercial area with modern apartments, and great transport links.

• Jumeirah Village Circle (JVC): An affordable and family-friendly community with a variety of apartments, green parks, and recreational facilities.

• Business Bay: An important business district with a mix of residential and commercial properties, ideal for professionals.

• Sports City: A budget friendly community with a range of apartments, schools and sports facilities. 

• Dubai Hills Estate: A very popular community featuring luxurious apartments, a golf course, parks, and fantastic amenities.

Conclusion

Buying an apartment in Dubai can be a very rewarding experience, offering a great alternative to renting for residents and fantastic potential returns for investors. By following this guide to buy an apartment in Dubai, you can navigate the buying process with confidence and make an informed decision. 

Whether you are looking for a new home or a lucrative investment, Dubai's real estate market has something to offer everyone. Partner with Engel & Völkers to find your perfect property and enjoy the many benefits of buying an apartment in Dubai.