Buying Process
Wondering how the buying process works in Dubai? We would be happy to help you!
Of course, we will guide you through each step and you can always contact us with any questions.
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Step 1: Orientation
The buying process starts with getting to know the market. We discuss developments in the market, compare locations, analyse price developments and note differences in construction quality and finish. We would like to hear what your preferences are. We also ask what financial wishes and possibilities you have in mind for your investment. By determining an amount that can be used for the initial deposit and a monthly amount for the repayment of the property, we can present suitable options to you.
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Step 2: Project Choice
According to your wishes we visit different locations, developers and show apartments. Then you choose a project and a specific unit in the project or you choose to make a reservation in a project that has yet to be launched. The latter option often gives you the opportunity to get the best (highest, most beautiful view, etc.) and/or cheapest unit.
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Step 3: Reservation
The following documents are required to make a reservation: a copy of your Passport and Emirates ID (if you are a Dubai resident), your residential and contact details and proof of payment of the reservation fee to the developer. The unit will be taken off the market or your place will be reserved in the new project after the above documents have been provided. The reservation fee varies per project and is often between $2,500 and $20,000. You will receive confirmation of this payment.
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Step 4: Downpayment & Purchasing Costs
After your unit is secured, you will have 3-30 days (depending on the developer) to pay the deposit + 4% Dubai Land Department (DLD) + Oqood + administration fee ($250 – $1,250) to the developer. Please note that the reservation fee previously paid will be deducted from this payment. You will also receive a confirmation of this payment.
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Step 5: Sales Purchase Agreement
After the above payments, the Sales Purchase Agreement (SPA) follows, this is the purchase contract. The SPA is signed and stamped by the buyer(s), developer and Dubai Land Department. The contract is also registered with the Dubai Land Department and you will receive an Oqood, this is the proof of ownership of a property that is under construction.
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Step 6: Payment Plan
The buying process is completed. You will now proceed to pay according to the payment plan.
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Step 7: Handover
At the Handover you can indicate whether everything is ok, or whether there are still delivery points, this is called "snagging" in Dubai. You can also authorise someone else for this. If everything is ok, you will receive the key. The Oqood is also converted into a Title Deed, this is the proof of ownership of a home that has been completed.
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Step 8: Rental or Living
Then you can start renting or you can start living in your new home!
To whom do I transfer money?
Payments made prior to signing the SPA go into the developer's account to cover government and brokerage fees. The remaining amount after these fees are paid is then transferred from the developer's account to the project's Escrow account. Payments after the SPA is signed go to the Escrow account.
The Escrow account is an intermediate account in the management of Real Estate Regulatory Agency (RERA) intended to regulate and control the building and construction processes, thereby guaranteeing the rights of investors.
What documents do I need for the Buying Process?
To buy off plan real estate in Dubai the following documents are required:
- Een kopie aan van uw Paspoort en Emirates ID (indien u resident in Dubai bent)
- Your residential and contact details
- The payment receipt of the reservation fee to the developer
Any questions?
As Dubai experts with extensive experience in the local real estate market, we are in an excellent position to help you purchase property in Dubai. Please do not hesitate to contact us if you have any questions.
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