Factors to Consider Before Buying a New Home in Dubai

Your new home is… a slice of heaven, a glimpse of beauty, a mark of elegance, a sigh so pretty. A warm feeling, a vibrant hue, a cozy ambiance, a dream come true. 

— Anonymous 

Whenever there is a discussion about a place that offers ultra-modern social and economic infrastructure, safe and secure living opportunities, and an outstanding lifestyle with a great deal of career choices, Dubai is always at the forefront. 

Dubai is undoubtedly a hub for endless real estate investment opportunities. Ranging from a lavish apartment in a high-rise to a luxury villa in a peaceful surrounding, you can find a variety of properties to live and invest in. Buying a new home in Dubai offers all the key essentials required for building a magnificent lifestyle, from the mesmerizing home architecture to tranquil and vibrant gardens to feel close to nature. These amenities make homes in Dubai an ideal choice for both investors as well as end users.

However, the question remains: What are the factors to consider before buying a home in Dubai?

The answer is, you need not worry. For your guidance, in this blog, we are going to provide a complete guide for buying a new home in Dubai.

Buying a New Home  in Dubai - What Factors to Consider

It is pretty common to feel a bit overwhelmed before making the big decision to buy a home in Dubai. But the good news is the process is quite simple and straightforward to execute if you have already taken care of the following elements:

1. Your Budget

The first and foremost thing you need to consider before buying a home in Dubai is your budget. It is advisable that you make a financial plan beforehand, keeping in mind the approximate amount you will be paying against downpayment, during construction, and on handover. A carefully planned budget is even more important when you are going to invest in an off-plan property because the mortgage options are very limited. The maximum LTV (loan-to-value) ratio offered in the UAE for an off-plan property is 50%, that too after the buyer has paid the first 50% amount or more. It is also important to note that not all banks offer mortgages for off-plan properties and those which do recognize only big projects by established and renowned developers. So your budget should be planned taking all these factors into consideration. 

2. The Area

Once you know how much money you currently have and how much you can afford to arrange in the future, say for a 3-year project, the next thing to consider when buying a home in Dubai is to search for areas where developers are offering off-plan homes within your specified budget. Dubai has a number of wonderful locations and each has to offer a unique set of benefits and amenities. Confused? To mitigate the complexity of the process, start by classifying different areas depending on your requirements or preferences. For example, if you want to explore the serenity of Dubai’s coastline, Palm Jumeirah and Pearl Jumeriah should be at the top of the list. For those who want to build a lifestyle in a golf community, Jumeirah Golf Estate at Dubai Hills Estate can be the preferred location. Similarly, if you want to experience the vibrance of shimmering lagoons, South Bay at Dubai South and Damac Lagoons are the right choices.  

3. Legal Considerations

Buying a new home in Dubai may require you to take into consideration some legal obligations, such as the required documents, legal fees, etc. Therefore, it is better to conduct in-depth research about the application process of buying a new home in Dubai. Once you are aware of the entire process, you can make any necessary arrangements in advance to avoid delays. 

4. The Developer’s Authenticity 

While it is exciting to decide to buy a home in Dubai, it is quite overwhelming when you see a myriad of new projects coming up every day by hundreds of developers. Which one to go for? Which developer is authentic? Being sure about the developer's authenticity is an important factor to consider before buying a new home in Dubai. When you search online, you will find an enormous amount of information. Some offers will seem quite lucrative yet too good to be true. Though Dubai’s off-plan property market is growing exponentially, a lot of fraud and scam is reported every day. To avoid falling prey to such fraudulent schemes, it is better to conduct thorough research on the authenticity of real estate developers in Dubai. Use any authentic portal that lists properties by only authorized real estate developers.

Cost of Buying a Home in Dubai

As mentioned above, the cost of buying a home in Dubai depends on a number of elements, such as the area, size, and amenities offered. Nevertheless, on average, the starting price of a three-bedroom brand new villa in Dubai can be as low as AED 1.4 million. However, this is just an approximate price based on the market data. The actual price may or may not vary. 

Moreover, in addition to the basic house payment, you will be required to pay some legal costs, such as the DLD fee, registration trustee fee, DEWA charges, and so forth. Therefore, it is advisable that while drafting your budget for buying a new home, along with a down payment, during construction payment, and on-handover payment, keep legal costs into consideration too. 

Buying a brand new home in Dubai can be one of the biggest decisions of anyone’s life. Therefore, it should be done after careful planning and research. Educating yourself about the points mentioned above can certainly make the buying process much easier and smoother.