Advice on Buying a Villa in Dubai
If you are planning to buy a villa in Dubai then following the advice of an experienced and professional real estate broker is the key to choosing the best villa to suit your requirements.
Budget: Your choice of villa and the area will be dependent on your budget. You can choose a fully furnished villa, which will be more expensive, or you may prefer an unfurnished one, with the freedom for design and decor. So when you look for villas for sale in Dubai, keep this in mind.
Purpose: Whether you are interested in villas or apartments for sale in Dubai, the goal is key to your choice of property. Is the investment for rental/resale or personal use – will also play an important part. For instance, renting villas can cost much more than apartments, depending on the location. However, villas in less popular areas can rent for less than apartments in the more urban areas.
Type of accommodation: Villa compound or a villa in a gated community? They both offer security, a sense of community and shared amenities.
A villa compound typically is a series of independent houses with similar amenities, providing a common area plus other facilities like a clubhouse, swimming pool and gym. Each villa and the land it stands on will be owned by the buyer. It offers ample space, privacy, and a healthier atmosphere (since it is usually located in a remote area). Some villa compounds in more central areas have essential amenities like supermarkets, restaurants, schools and hospitals nearby. Maintenance work will be the responsibility of the owner.
A gated community is an enclosed residential estate, usually on a large scale, guarded with walls or fences. The villas are mostly freehold, available for rent and sale by expats as well. The common area and facilities are open to all owners. Maintenance work is usually undertaken by the Management Committee, who collects a maintenance fee from each resident for the upkeep of common areas.
Freehold vs Leasehold Property: It is wise to understand the difference between these:
Freehold property: The buyer is the owner of the property and the land it is built on. It can then be sold, rented or occupied by the owner.
However, the freehold market in Dubai is in 2 categories – areas where freehold property is exclusively for UAE or GCC nationals and designated areas where property can be purchased by an expat or foreign investors.
Leasehold property: The buyer will be granted property rights for a fixed term, up to a maximum of 99 years. However, the buyer will not own the land the property is constructed on. The ownership for the land goes back to the owner.
Documentation: Once a decision is reached on the villa to be purchased, the buyer and seller will have to agree on the terms of the sale.
A Memorandum of Understanding (MOU) will have to be signed by both parties.
An advance deposit will have to be paid.
NOC (No Objection Certificate) from the developer will need to be issued.
DLD: Then, the Dubai Land Department (DLD) will transfer the ownership.
Mortgage: If the buyer is considering taking a mortgage, the same will need to be approved by the Bank.
Purchase from a developer: In this case, a Reservation Agreement will have to be drawn up. Once the deposit is paid and the terms are agreed upon, a Sales and Purchase Agreement needs to be written. This is a formal commitment and usually stipulates the completion date and any compensation if there is a delay.
Fees and other charges:
Registration fee: Normally, the DLD requires a registration fee of 4% in addition to an administration fee which goes to the DLD.
Mortgage registration fee: will be additional and paid to the DLD.
Conveyancing: Conveyancing fees, to authenticate the legal and financial process, will also need to be paid.
District Cooling/Chiller charge: If it is District Cooling, then the tenant pays the charge. If it is Chiller-free, the landlord bears the complete cost of air conditioning, and the tenant only pays for the electricity (excluding air conditioning) within the unit. Chiller free is an added perk that landlords offer tenants.
Developer (if any): Annual service charges will need to be paid in advance.
ROI (Return of Investment): Since Dubai is a business hub and so cosmopolitan, property investment is a steady way to increase ROI. There are no limitations on who can purchase property in Dubai, and no residency or similar permit is required.
With all the pros of investing in a villa in Dubai, and with the help of your RERA (Real Estate Regulatory Agency) registered estate broker, finding a suitable villa for sale in Dubai will be simple!
