MoneyMindsDXB

Dubai’s thriving real estate market attracts investors and homebuyers from around the globe. While the allure of buying a ready-to-move-in property is strong, it’s crucial to go beyond appearances and perform due diligence. Many buyers, eager to close the deal, overlook essential details that can lead to long-term challenges.

This guide highlights everything you wish you’d known before buying a ready property in Dubai. From financial considerations to property-specific details, we cover it all to help you make an informed decision.

1. Confirm the Actual Size of the Property

The size of your future home affects its price and long-term service fees, but discrepancies between the listed and actual size are common. Sellers often include unusable spaces like walls or staircases in their calculations. Always measure the area yourself or hire a professional. Request architectural drawings, which often reveal significant margin errors that could cost you dearly in the long run.

2. Scrutinize Service Fees

Service fees are a recurring expense and can vary widely. Ask for the exact cost per square meter, documented based on the community’s approved budget. Avoid accepting vague estimates, as every community is required to have a budget approved by the first quarter of the year. Withholding accurate service fee information is a red flag; insist on transparency.

3. Evaluate the Air Conditioning System

Dubai’s climate makes air conditioning an essential consideration. Check what type of units are installed and their capacity relative to the property’s size. Inadequate or outdated systems can lead to higher electricity bills. Factor in potential costs for replacements or upgrades if needed.

4. Investigate Waste Management Policies

Every community in Dubai handles waste disposal differently. Ask how often garbage is collected, what the recycling policies are, and how large items like furniture are disposed of. Clear policies on waste management contribute to a smoother living experience.

5. Understand Community Rules for Renovations

If you plan to renovate or customize your home, check the community’s rules. Some communities require expensive permits or have restrictions on changes like wall demolitions or garage door installations. Others don’t allow move-ins or renovations during weekends, which could disrupt your plans. Knowing these rules beforehand will save you time and frustration.

6. Construction Access and Gate Permits

Communities often require permits for construction companies to enter, and these can come with hefty fees. In some cases, only approved contractors are allowed. This can limit your options and increase costs. Ensure you’re aware of these restrictions before planning any modifications.

7. Parking Arrangements and Visitor Policies

Parking is a crucial yet often overlooked aspect of property buying. Confirm how many designated parking spaces come with the property. Check the visitor parking situation, as strict rules can make hosting guests a hassle. You don’t want your housewarming party guests to leave with parking fines.

8. Internet Providers in the Area

Dubai properties are serviced by either DU or Etisalat for internet. Knowing which provider is available will help you avoid delays in setting up essential services. Fiber optic connectivity is a must for modern living, so confirm its availability beforehand.

9. Ensure Service Contracts Are Up to Date

Before finalizing the purchase, verify that the seller has paid all service fees up to date. Outstanding dues can become your responsibility once the property is transferred. Request proof of payment to avoid inheriting any liabilities.

10. Bank Valuations and Cash Requirements

If you’re taking a mortgage, remember that banks evaluate properties independently. Their valuation might be lower than the market price, requiring you to pay the difference in cash. Be prepared for this possibility to avoid disruptions in the buying process.

11. Hire a Maintenance Expert

Even ready properties can have hidden issues. Bring in a maintenance expert to inspect the property before signing the Memorandum of Understanding (MOU). They can identify potential problems like faulty plumbing or electrical issues that might not be immediately visible.

12. Pro Rata Service Charges in the MOU

Ensure the MOU includes a clause specifying that service charges will be prorated from the date of the deal. This protects you from paying for fees accrued before your ownership begins.

13. Dubai Land Department (DLD) Fees

DLD fees are mandatory and typically amount to 4% of the property’s valuation. Since these fees are based on the assessed value rather than the agreed purchase price, you’ll need to budget accordingly.

14. Be Wary of Agents’ Promises

Real estate agents often prioritize closing deals quickly and may make promises that don’t hold up. Always verify their claims and ask for written proof. Remember, agents representing the property work in the seller’s interest, not yours.

15. Mortgage Brokers: Pros and Cons

Mortgage brokers can help secure better terms and negotiate protective clauses in your agreement. The good news is that banks usually pay their fees, so it won’t cost you extra. However, with a little research, you can also negotiate directly with banks if you prefer.

16. Verify Utility Connections

Check that water, electricity, and internet connections are functional and that all bills are up to date. Outstanding payments can delay your move-in process and become a hassle to resolve.

17. Factor in Long-Term Costs

Owning a property in Dubai involves more than just the purchase price. Consider ongoing expenses like service fees, maintenance, and potential upgrades. A clear understanding of these costs will help you budget more effectively.

18. Make the Agent Work for You

Agents earn substantial commissions, so don’t hesitate to demand detailed answers and documentation. Their knowledge of the property should be thorough, and vague responses should raise concerns.

19. Trust but Verify

Dubai’s real estate process is straightforward if approached with due diligence. Verifying every claim and detail will protect you from unpleasant surprises and ensure a smooth transition into your new home.

Buying a ready property in Dubai is an exciting venture, but it’s not without its challenges. By taking the time to ask the right questions and performing thorough checks, you can avoid pitfalls and make a decision you’ll be happy with for years to come.