Factors To Check While Investing In Dubai Real Estate Market

Have you ever thought of buying a property in the city where Burj Khalifa (World’s tallest building) is? If yes, then you must read this blog, as you will be needing proper guidance for buying an apartment in one of the five richest countries in the world-United Arab Emirates (UAE). To decision to buy apartments in Dubai needs a careful investigation of a lot of factors like the economic growth of the place and investment rates and return.

There are many apartments in Dubai which are a dream home for many. Every apartment in the city is a luxurious abode which has all modern amenities and is the ultimate definition of architectural sophistication and perfection.

Dubai has been a hotspot also for sectors such as tourism, real estate etc and the ever-growing population of the city has made it an ideal place for property investments.

To buy apartments in Dubai you have to check a few factors of the real estate market. Here is a list of certain points you need to keep in mind while planning to invest:

Choose Between Off-Plan And Secondary Market: The most significant decision that you need to take is that whether you want to purchase an off-plan, i.e., an under-construction property from a developer, or you want to go for the secondary market or resale from an owner. The factors that will have an impact on the type of property are the purpose of the purchase, availability of capital. You have to know whether it is sufficient to meet the down payment and payment plan for off-plan property or equity requirements in case of a resale.

Financing: Financing differs for mortgage and cash buyers. It involves pre-approvals for a mortgage. Many of the mortgage institutions offer the option of pre-approved financing. This option permits the buyers to have their loan approved prior to choosing a property. This speeds up the process of purchase and satisfies sellers who require financing before signing the memorandum of understanding or the purchase agreement. Cash buyers must ensure sufficient funds are available in their bank accounts before sealing the deal.

Loan Disbursement And Property Valuation: In case of a mortgage purchase, the bank carries out a valuation test to determine if the asset value is independent of the purchase price. The loan is then being disbursed by the bank as per the agreed LTV ratio. The exact amount is either the purchase price or the bank value, whichever is lower. The bank carries the mortgage cheque in favour of the seller on the day when the title of the deed is transferred.

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