The real estate investment opportunities in Dubai are endless thanks to the variety of properties available. Ranging from a penthouse in a skyscraper to a floating villa, you can find all sorts of properties to live and invest in. Among these different property types, villas have always been a popular choice for buyers. Villas in Dubai have every essential element required for a grandeur lifestyle including eye-catching architecture to landscaped gardens. The versatility of Dubai villas makes them ideal for both investors and end-users.
For your convenience, here we have listed all the processes involved and things to consider when buying a luxury villa in Dubai.
How to Purchase a Luxury Villa in Dubai
The process of buying a villa in Dubai is straightforward to execute. Here we have mentioned all the steps that will guide you through the process of buying a villa in Dubai.
Draft Your Budget
The first step in the process of buying a villa is to draft your budget. The real estate market of Dubai offers a wide range of villas ranging from moderately priced to exceptionally expensive ones. That said, sort out and arrange all the finances beforehand, especially if you are buying a villa on a mortgage. Moreover, while drafting the budget make sure to consider the hidden costs of buying a property in Dubai like insurance and maintenance costs.
Select the Area
Once you are done with the budget, it’s time to choose the area. Dubai has multiple neighbourhoods and each comes with its unique set of amenities. To ease the process, start by categorising different areas. For instance; if you are an expat, shortlist the freehold property areas of Dubai. Furthermore, prioritise the areas as per your requirements like if you want a beachfront villa, Palm Jumeirah should be at the top of the list.
Consult a Real Estate Agent
After shortlisting two to three areas, consult with a real estate agent. Involving an agent is optional, however, there are multiple benefits to hiring a real estate agent. These professionals can help you in buying a villa conveniently and completing all the legalities hassle-free.
These are all the pre-buying steps, after completing these steps and finalising a property, you can move towards the legalities.
Complete the Legal Process
Following all the pre-buying steps, it’s time to cater to the legal steps of buying a property in Dubai.
Step 1: Draft Terms of Sales
Once you have finalised the property, formulate the terms of sale. During this process, buyers and sellers negotiate over different aspects of buying a luxury villa in Dubai. This may include payment method, legal compliances and other terms and conditions. If you are purchasing property in Dubai for the first time, it’s suggested to consult a lawyer or real estate agent.
Step 2: Sign MOU
The Memorandum of Understanding (MOU) or Form F is one of the RERA forms in Dubai that is used to draft a sales agreement. Both parties are liable to sign the contract at the Registration Trustee’s office in the presence of a witness.
After signing, the buyer has to submit 10% of the total property value as a security deposit. The deposit will be refunded, once the property is transferred in the name of the buyer.
Step 3: Acquire NOC
Before transferring the property to the new owner, a NOC from the developer is required. The developer will only issue the NOC if there are no remaining payments due. Therefore, sellers should clear all the dues before finalising the deal.
Step 4: Transfer the Property
The last legal step of the process is to transfer the property to the new owner. For this, the buyer and seller are required to visit the DLD office along with the required documents to execute the process. After the process is completed, a new title deed will be issued in the name of the new owner.
For more information on the transfer process, read our blog on property ownership transfer in Dubai.
Submit the Required Documents
To execute the property ownership transfer, the following sets of documents are required.
- Cheque for the payable property price
- Copies of buyers’ and sellers’ Emirates ID/Passport
- Original NOC issued by the developer
- Signed MOU or Form F
Things to Consider When Buying a Luxury Villa in Dubai
Before you finalise the deal of your new home, mentioned below are some aspects to consider when buying a luxury villa in Dubai.
Analyse Market Trends
It is necessary to conduct your research on market trends and future property transactions. Although real estate is a thriving market in Dubai, it can get affected by global situations and financial issues. That said, as an investor, it is suggested to analyse the market and predict the trends in the near future for gaining maximum ROI.
Consider Return on Investment (ROI)
When you have decided to buy a luxury villa in Dubai, always consider the ROI of the property. This is because, in the long run, you can convert your home into an investment property and earn rental yields. Therefore, when buying a luxury villa project its rental income and market value in the future. If you are new to the market, browse through these tips and tricks for thriving as a real estate investor.
Prioritise Location
The key element that will affect the rental yields and ROI of the property is its location. That said, location should be prioritised over other aspects of the property. Always opt for a villa located at an ideal location like the waterfront, as the value of these villas generally increases with time. That will be an add-on to the benefits of buying a property in Dubai.
Count on the Amenities
The last thing to consider is the villa community, layout and amenities that will be provided. Make sure that the community offers basic facilities like parks, community centres, and gymnasiums and also arrange social events. Moreover, if you have the option to choose between a gated and a normal community, opt for the gated one. This is because there are numerous benefits of living in a gated community like privacy and security.
Cost of Buying a Villa in Dubai
The cost to buy a luxury villa in Dubai depends on multiple factors including location, size, and layout. However, according to the dubizzle annual Dubai sales market report 2022, the cost of buying a luxury villa in Dubai can range from AED 4,716,000 to AED 29,276,000. Remember that these are average sales prices and they may or may not vary from the actual market price.
Apart from the basic house payment, here are some other costs that should be considered.
- Agency fee which is generally 2% of the total property value.
- 4% DLD registration fee+Trustee’s office charges.
- Sales progression charges.
- Mortgage registration fee (in case of home financing).
- NOC charges that range between AED 500 to AED 5000.
In case, the cost to buy a luxury villa in Dubai is out of your budget, opt for the home financing option. Many banks in the region provide different types of mortgages in Dubai to financially aid the buyers. Remember that the process of securing a mortgage can take some time. Therefore, plan and execute the mortgage process at least 1 month before the purchase.
if you still find villas expensive to buy, browse through these top areas to rent luxury villas in Dubai and move into a luxury villa as per your budget.
Where to Buy Luxury Villas in Dubai
The Emirate is filled with luxurious properties situated in almost every corner of Dubai. For your convenience, here we have shortlisted some popular areas to buy luxury villas for sale in Dubai.
- DAMAC Hills 2
- Dubai Hills Estate
- Palm Jumeirah
- Arabian Ranches
- Jumeirah Park
To know more about these areas, read our blog on top luxury areas to buy a villa in Dubai.
This was all about buying a luxury villa in Dubai. Dubai is synonymous with a luxury lifestyle and state-of-the-art amenities. These aspects are supported by friendly investment policies, a multicultural environment and a sense of security. That said, all of these factors contribute to increasing investment returns on properties in Dubai. If you are also interested in availing of these returns, browse through these villas for sale in Dubai and purchase an appropriate property for investment purposes.
Stay tuned to dubizzle’s property blog for more information on luxury holiday villas in Dubai.
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