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Your Ultimate Guide to buying Real Estate in Dubai

Posted by Deepa Anchan on August 4, 2023


So, you’ve taken that big step! You’re all set to make your dream of owning a house in Dubai come true. But before you invest your hard-earned money in a home, you want to make sure it’s the right choice.

Buying a home might feel overwhelming – it’s a big deal, both financially and emotionally. It could be one of the priciest things you ever buy.

Honestly, navigating Dubai’s real estate market can be tricky. Prices are shooting up, new projects pop up all the time – it’s easy to feel lost.

But don’t worry! This guide is here to help. We’re about to spill the secrets that can guide you to make a smart decision when buying your property.

Why do you want to buy a house?

Most people don’t realize this, but the first step before buying any property is understanding why you’re buying it in the first place.

1. Are you getting the house for yourself? Or is it more of an investment?

While you might think they’re the same, there are a few differences in choosing the right property based on what your goal is.

Usually investment properties make good homes for a majority of people, but that doesn’t always mean they’re the best fit for you.

2. When you are buying a property to make it your home, you have to ask yourself; what are the things that are important to you?

3. Does it need to be a short drive from your workplace?

4. Would you prefer if it had schools and parks nearby for your kids or lots of retail and restaurants?

5. Do you want an apartment with a view of the skyline and are okay with the hustle and bustle of the city? Or a quiet townhouse in the suburbs?

6. What are your plans for the future? Do you want to make it your forever home? Or are you thinking of moving later on?

Every house has its pros and cons. Striking the right balance matters.

Your lifestyle preference should be your top consideration when buying your own place.

On the flip side, when it’s an investment property, numbers are the name of the game.

7. Is it an area offering a high Net ROI? Could you expect a good increase in value in the next few years?

Your emotions don’t play a big role when buying an investment property.

8. Are you okay with a growing neighborhood with rising property values that might not have schools or extensive shopping options yet?

Likewise, an area with schools and malls might promise a wise investment, but it could also be quite a distance away from your workplace.

Ideally, if it’s a house you want to live in, I’d suggest striking a balance between a house that suits your lifestyle but can also go up in value in the future.

Setting a Budget:

Before you start hunting for your dream house, it is crucial to set the limits of your budget.

Your budget will predominantly defines type of property you can buy and where it can be.

Start with figuring out with how you are going to be buying your house in the first place. Are you going to pay the money upfront or are you going to get a mortgage?

If you are going the mortgage route, it important you get a pre-approval before you start looking for anything. No seller or broker will take your request seriously unless you are pre-approved.

Once you have the pre-approval you’ll also have a clear idea of what your maximum budget can be when buying a property.

Also make sure, you keep additional money on hand for upgrades or renovations if required and in case of any emergency. Putting all your money into a property can leave you with a hard time in case of an emergency. So it’s always a good idea to keep some money aside for a rainy day.

How to select the right house?

Here are some tips to help you make a smart decision when buying real estate:

1.      Location Strategy:

  • Focus on neighborhoods that have a history of steady or growing property values.
  • This would ideally be a growing community like Dubai Hills, or Dubai Creek Harbor. Since they’re not fully established and still growing they have massive growth potential.
  • Look for areas undergoing new development, such as Arjan and JVC, as these often indicate signs of potential for future appreciation.

2.      Amenities and Infrastructure:

  • Choosing areas that have easy access to major roads and important things like schools, hospitals, malls, and public transportation is always a smart move.
  • This would not only be good for you and your family but also makes it easier to sell later on if you decide to, bringing a better price than one without this access.

3.      Upcoming Developments:

  • Keep an eye out for new upcoming projects in that area like new roads, parks, and shopping centers nearby.
  • These things usually make the area more desirable and can make the value of properties go up.

4.      Market Trends:

  • Do your due diligence and stay updated on Dubai’s real estate market trends. Follow reports, news, and forecasts to understand which areas are projected to experience appreciation.
  • Review recent property transactions in the specific area or community you’re interested in. Analyze the recent activity and price changes over the past 6 months. This will give you a good understanding of how much demand there is in that location.

5.      Demand & Supply:

  • Study how much supply and demand there is in the area you’ve picked. If the market is stable or there’s a bit of a shortage of properties indicated demand which could lead to higher prices later on.
  • If you find that there’s an oversupply in the market and there are a lot of properties for sale or empty, it could increase competition between sellers leading to lower selling prices.

6.      Resale Potential:

  • Think about how easily you could sell the property in the future.
  • Features like having a modern and spacious layout, with well-kept facilities can make your property appealing to potential buyers down the line.
  • It’s advisable to opt for a new property or in a newer community as it is usually more desired. Moreover the maintenance would be easier. They also have modern designs with newer systems which is always preferred. It also ensures a longer lifespan.
  • Make sure the developer behind the project is reputable and has a track record of constructing good properties. Developers with positive reviews for quality and upkeep should be priority especially if it’s your first property purchase. This can lead to a higher selling price in the future as well.
  • A Community or building by a good developer also ensures its upkeep even if it’s old. You may have noticed that properties built by non-reputed developers usually start having maintenance issues as they get older.
  • Which is why properties from esteemed developers also tend to command better prices, even if they’re older.
  • Look for areas with schools, parks, clinics, and fun things to do. This way, your home can attract different types of people when it comes to re-selling.

7.      Work with a Professional:

  • One of the best things you could do is work with a professional and knowledgeable Real estate broker.
  • A good real estate consultant can help you navigate the market giving you options that fit your preference. And also negotiate a better deal.
  • If you have finalized a location, it’s best to work with an area specialist who knows the ins and outs of the area again helping you make a more informed decision.

Legalities & Fees:

It is also important to have a clear idea with all the legalities, hidden costs and closing costs when buying a property.

To make it simple here are the 5 Main costs you need to be aware of:

1.      DLD Fees:

  • In Dubai, when buying a house you have to pay the Dubai Land Department purchase fees.
  • 4% from selling price + 580 AED (if apartment or villa) or + 430 AED (if land) (Manager cheque)

2.      Agency Fees

  • Agency fees (brokerage commission) of real estate consultants are usually 2.1% of the price of the property (including vat.)

3.      NOC Charges:

  • There is also an NOC charge given by the developer, this is ideally paid by the seller but in some cases are paid by the buyer. The NOC charges depends on the developer and can range from anywhere in between 500 – 5000 AED.

4.      Title Deed Fee

  • This fee is charged when a title deed is issued for a property. The fee is AED 2,100 for properties valued up to AED 500,000 and AED 4,200 for properties valued above AED 500,000.

5.      Banking Fee

  • When dealing with a mortgage, you might encounter certain fees like a bank valuation fee and a bank arrangement fee.
  • The bank valuation fee can go from AED 2000 to 5000, while the bank arrangement fee can be between 0% and 1.5%, and these numbers change depending on the bank.
  • In Dubai, there’s also a mortgage registration fee of 0.25% along with AED 290 that you’ll need to pay to the Dubai Land Department.


Congratulation you are now ready to make a smarter and informed decision when buying your property.

Buying your first house can be financially and emotionally challenging. Don’t rush into making a decision, and take your time to think it through completely.

We at VALCOM Properties have specialists trained to help you navigate through this bussing market. With a deep understanding of Dubai’s real estate market, we can guide you through the market’s twists and turns. From discovering the perfect neighborhood to negotiating the best deals, we’re here to make your journey as a home-owner seamless.

Take the Next Step: Contact Us Today

And remember, you’re not just buying a property – you’re crafting a chapter of your life. Let us help you script a success story in the enchanting world of Dubai’s real estate.

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