UA Nations Introducing New Policies to Stop Real Estate Crisis

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Buying property in the Arab world has been difficult for many years because of the political instability that characterized the region and the laws in many Arab countries prohibiting foreigners from purchasing assets. 

In an effort to curb the downward spiral, new laws have simplified the process of buying properties in Dubai. The real estate sector opened up to foreign investors when the Freehold Decree was signed into law. Today, buying property in Dubai and other countries in the Middle East is easy if you use an agent such as propertytrader.ae. The price of properties has been increasing over the last few years, making real estate a viable venture. However, buyers must do their due diligence and get all the information about a property, seller, and funding before signing any purchasing agreement.

Advice for Foreign Buyers
Foreign buyers can buy a property from a private seller through resale or from a developer off-plan. With an off-plan property, buyers are required to submit their passport, pay a reservation of between 5% and 15%, and submit a reservation form with terms and conditions. Buyers should remember to ask about the completion date and any compensation for delays if the property is under construction. A private seller will require a signed memorandum of understanding and a 10% deposit for the property.

Buyers should check the developer’s reputation in completing projects on time. People looking for properties for sale in Dubai are advised to work with a developer with several completed projects. And if they’re buying from a private seller, visit the property and inspect it thoroughly for any faults.

Buyers should also ask the developer or private seller if the property has any debt or liability on it and ensure that they get a No Objection Certificate from the developer. The Certificate will confirm that the property has no liabilities and is ready for transfer to a new owner.

Understanding the Extra Costs
Foreign buyers should know that they will incur extra costs and fees in addition to the agreed buying price. The lawyer and developer or real estate agent will charge fees for identifying the property. If the property was bought through a mortgage, the bank will charge a transaction fee. Buyers will also incur maintenance fees and 2% fee on land registration. Foreign buyers should account for these extra costs when looking for funds and negotiating the price of the property.

Understanding Terms and Conditions
Buyers are advised to read all the terms and conditions of the sale and purchase agreement or memorandum of understanding carefully. 

What Does the Future Hold for Real Estate in the UAE?
We can expect more governments in the region to adopt foreigner friendly policies aimed at attracting foreign investors to further stimulate growth in the region. GDP, as well as oil revenues, has been on the decline, mainly to a softening of the oil market and a decrease of oil prices. But if the laws of the market are of any indication, the housing bubble might burst soon, which could be a blessing in disguise for the region.

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