When you think about investing in real estate, Dubai comes at the top of the list as it provides the highest return on investments. Whether you want to buy an exotic apartment or an off-plan property in Dubai, even if you’re in the market for a pocket-friendly studio, there’s something for everyone.
It is vital to note upfront the numbers, which is why we start with the basics. In Dubai, you can find everything, from inexpensive studios to high-end villas and everything in between. Where you set the funds aside for the property will rely significantly on the following:
For someone looking for the bare minimum, a studio apartment in the less expensive parts of Dubai is ideal. Here is why:
The above minimum budget is assumed to cover only the most basic details. The following are some bumps that may get a little too overboard:
With ready properties, a bigger deposit is required upfront. However, you can move into the property immediately.
Service Charges: These are rolling fees every year to the building management for maintenance, security, and cleaning of the general areas of the property. Different buildings and developments will hence charge differently.
Utilities: The costs of electricity, water, and internet can significantly be reduced during summer. There is no annual property tax in Dubai, so there is no need to allocate an amount for that. Some policies cover homes for damage incurred, theft, and loss, so it’s best to get it.
Mortgage Payments (If Applicable): In the case of loans, include the interest, which is paid along with the principal amount every month.
A lot of buyers use a mortgage to purchase a Dubai property. Here are the main points to consider:
Eligibility: A bank’s initial down payment requirement is usually 20% for UAE residents and 25% for non-residents. A bank will also examine your income, credit score, and employment.
Interest Rates: In Dubai, mortgage interest rates are typically based on the bank, the amount of the loan, and the current market situation. There is a lot of competition, so rates can be lower if you look around.
Loan Term: A mortgage is typically provided for 25 years.
Research! Ensure you check the different types of properties in various locations.
Mortgage Pre-Approval: It will guide you on how much you can spend, so it is advisable to obtain pre-approval.
Don’t hesitate to bargain the cost. Whatever the seller or developer quotes, convince them of the price you think is equitable.
Know Your Limit: Falling into the extensive debt trap and buying overly priced properties is imprudent, so be sensible.
If you want to purchase property in Dubai, you should keep in mind that at least AED 450,000 to AED 550,000 would be the least needed to buy a small furnished studio within Dubai’s affordable suburbs. This is only a baseline expense because the ultimate amount you must pay will most likely reflect your personal choices, such as area, type of property, and how you intend to finance it. Buying property in Dubai can be achieved with proper budgeting and cost management.
Dubai’s real estate market can be challenging, especially for first-time investors interested in purchasing Dubai investment properties. GRD Off Plan can assist you in finding the right property under development and streamline the buying process. The website has a selection of off-plan properties across Dubai, and filters used on the website make it simple to look through various developments by location, type, price range, etc. Start browsing today and take the first step towards owning a property in Dubai’s flourishing real estate market.
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