When Is the Right Time to Buy Property in Dubai?
Those considering Dubai as a permanent base often wonder about the ideal timing for a property investment. The city is experiencing rapid growth, showcasing exquisite properties that offer a quality of life many elsewhere can only dream of.
Let’s be clear: purchasing property is a significant life step. It involves a substantial financial obligation that lasts for a considerable period, which can be a source of apprehension for many. And that’s completely normal! Read on to truly assess if you are ready to take the first steps towards owning property in Dubai.
You're Financially Secure
The initial and the most important element revolves around financial commitment when considering a property purchase. Generally, acquiring real estate in Dubai requires sufficient outlay of money, cautiously evaluating your repayment capacity.
Whether you operate your own business or work for a company, it is necessary to assess your earning credibility. Reflect on your income creation in the previous two years. Has your income stream been reliable and regular? Do you operate the industry under exhibition stability?
If you are working for a company, reflect on the type of your workplace. Is it an environment where there is a possibility of instability, with a risk of job loss at any time? Do you see yourself staying with your present employer for the long term?
Additionally, if you intend to secure a home loan in Dubai, then an important factor to take care is your credit history. Maintaining a strong credit score will greatly improve your possibilities of getting initial approval for your mortgage.
Affordable Down Payment Options
When buying property, the first payment you make is the down payment. This is a percentage of the property’s total cost. A common oversight for first-time buyers in Dubai is not realizing the down payment amount, often resulting in them needing personal loans to pay it.
The required minimum down payment for properties in Dubai depends on the buyer’s nationality and the property’s price range. For properties priced at or below AED 5 million, expatriates must pay 20%, while UAE nationals pay 15%. If a property costs more than AED 5 million, the down payment increases to 30% for expats and 25% for UAE citizens.
To explain that when purchasing property priced at a million AED, a foreign national will initially have to pay 250,000 AEDs, while a citizen of UAE will pay 200,000 AEDs as initial payment. Potential buyers are required to understand these financial obligations while preparing to invest in the real estate market in Dubai.
These zodiac signs may seem enough to many persons; however, if you are considering optimal time to invest in Dubai Real Estate, your initial deposit is necessary. As an early point, find our guide on depositing funds for down payment in Dubai.
In fact, if you have not secured your down payment fund, it is advisable to avoid being committed to the purchase of property in Dubai. An option may be to consider a more affordable apartment in Dubai, saving funds and then buying a residence later.
Please note:Â The down payment discussed earlier represents a general amount; the precise sum can fluctuate depending on the bank selected and the characteristics of the person borrowing.
Plan your budget with room for extra expenses
Understanding the expenses involved in purchasing real estate in Dubai is crucial for adequate preparation. When planning your finances for a property acquisition, remember that the final price isn’t the only factor; you’ll also need to account for items such as the real estate agent’s commission, the Dubai Land Department (DLD) fee, and ongoing service charges. Determining your initial expenditure is a fundamental first step.
After completing the property purchase, you will also need to plan for recurring costs like maintenance and community association dues. Furthermore, it’s wise to anticipate potential repair needs, such as plumbing issues or air conditioning malfunctions.
So, make the necessary adjustments to your budget and account for extra expenses.
Please Note: Starting on January 1, 2025, prospective property owners in Dubai should note that their mortgage will no longer account for the 4% Dubai Land Department fee and the 2% agent fee. This change means that the initial outlay for buying property now includes these fees in addition to the down payment.
Property prices per square foot are lower
If you are thinking about purchasing property in Dubai, regularly checking property prices and market tendencies is advisable. This will put you in the best position to make a sound judgment.
While you’re watching these market movements, be alert for any situations where the cost per square foot of property in the specific areas you’re interested in goes down. It doesn’t happen often, but it can!
Unlike some other countries, Dubai does not have a universally agreed ideal period to buy real estate. However, the data indicates that the period of July-to-September usually sees the lowest property sales perfection annually. Observing the same points in the calendar can help you identify the appropriate moments to buy property in Dubai. ,
The favorable time to consider a property purchase in Dubai often coincides with the warm months, national holidays and festive seasons. Keep a close watch on the market changes using resources such as Dubai transactions to inform about the reduction in potential value.