10 things to note when buying house in Dubai

As Dubai’s residential property market seems to be looking up once again, many who were earlier sitting on the sidelines are now actively contemplating buying a place in the city.

Experts believe that any money put into the market now will see healthy returns in the future but there remain certain factors to consider before people put in their lives savings into buying a house.

Emirates 24|7 spoke with some experts in the industry, who believe a little bit of caution can go a long way.

According to Charles Neil, Chief Executive Officer at Landmark Properties, some important factors are always on a home buyer’s mind.

Listing the factors, he says: “Location, who the Master developer is, who the building contractor was, monthly electricity costs, service charges, quality of build, energy efficiency, is there an existing mortgage on the property, does the buyer require a mortgage,” are some very important things that should be clarified before signing any kind of legal papers.

Location and return on investment are things that often influence the decision of the buyer, according to Tareq Gouda, Team Leader, City Tower Office, Better Homes.

“Buyers often look for the best their money can buy but the top factors have been location, property size, amenities and community advantages. Our experience indicates that buyers should also consider the quality of the property and the neighbourhood,” he told this website.

Elaborating on some other factors that a buyer should also keep in mind while deciding to purchase a property, Neil added: “Geopolitical risk, is the property for own use or an investment, if buying an apartment what issues there are vis-a- vis the developer and interim owners associations, are the service charges transparent, how many people have paid their service charges, is the apartment block at risk of having its electricity cut off for non-payment of electricity bills by developer,” are things to be considered.

“The list is endless,” he added.

Nevertheless, based on expert opinion, Emirates 24|7 lists below the top 10 factors that anyone thinking of buying a property in Dubai must consider before making the move:

1.       Location
2.       Master developer’s delivery and maintenance track record
3.       Building contractor’s  quality record
4.       Potential return on investment
5.       Recurring monthly costs, including electricity and service charges
6.       Seller’s existing mortgage prepayment requirements
7.       Buyer’s mortgage ability and availability
8.       Unresolved issues between Interim Owners’ Association and developer
9.       Overall property size
10.   Geopolitical risk

While this list is not exhaustive - and only indicative at best - keeping the above factors in mind will ensure that you are taking an informed decision.

“I bought an affordable apartment in the city during the boom years but the place is so run-down today and the list of problems that I had to face was endless so I disposed it of. On the other hand, my friend who invested more in a good location, was in a much better situation even when the property market was at its worst. I’ve learnt my lesson – location and location is the one thing to remember and of course the developer,” a property owner told this website.

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