5 Factors to Consider Before Buying a Villa in Dubai

5 Factors to Consider Before Buying a Villa in Dubai

The first question that comes to mind before buying a villa in Dubai is: Why invest in Dubai? Simply, because property prices per square foot are lower than many other cities globally, making Dubai an affordable location to purchase prime real estate.

Being one of fastest growing cities worldwide with a multinational population increasing at a rate of 10.7% Year on Year as per World Population Review, investing in real estate in Dubai affords exceptional advantages. But before deciding to proceed, whether for personal use or just for investment, there are some aspects to consider avoiding any unfortunate mishaps!


1- Type of property

In Dubai there are two types of legal ownership: Freehold and leasehold properties.

A leasehold property means the buyer is entitled to the usufruct rights of the villa and not to the land itself for a period of 99 years or less, renewable at the expiry of the term. Contrary to freehold ownership, the leasehold offers wider options regarding the cost and, particularly, the area. The only downside of such a property is that permission must be granted from the freeholder for any remodeling or repairs to the villa. In addition, subletting is not permitted.

On the other hand, purchasing a property on a freehold basis has been authorized in Dubai for foreign investors since 2002, provided they are at least 21 years old. However, freehold ownership is available in specially designated areas around Dubai. Freeholders have complete ownership over the villa and the land it is built on. Moreover, they are allowed to buy, sell, lease, and rent the purchased property. Another advantage is that a freehold property is automatically inherited by the family with or without a presence of a will. Foreigners residing outside the UAE are also allowed to buy a freehold real estate.

Location and neighborhood are among the first factors that attract buyers to a villa for sale in Dubai. Although freehold properties are usually located in upscale areas, it is recommended to take your time before selecting the right property according to your needs as a resident or financial expectations as an investor. Choosing the appropriate location is essential as it can affect the ROI you can expect from it in a few years’ time.


2- Developer’s credentials and reputation

There is a villa for sale in Dubai and you are planning to buy it? First, you have to check the developer’s reputation. A reliable developer must be registered with a relevant regulatory organization. It is always safer to buy from an experienced builder with a good delivery record, especially when it comes to projects under construction. In addition to a thorough search about the builder online, going in for field research is very useful. Local brokers can also help a lot in this area, as can customers who have bought units in previous projects. Checking the credentials of the contractors is mandatory before any purchase. Remember, lack of transparency is a good enough reason to not buy.


3- Facilities and amenities

Amenities play a major role in your choice of property as they contribute to the enjoyment of the residents. Location is one of the most important amenities a buyer looks for. Then come other facilities such as proximity to shopping malls and supermarkets, large green spaces, covered parking, high Internet speed, etc. Gymnasium, wellness facilities, swimming pools, recreational areas for kids and adults alike, daycare, etc., are among the facilities that are gaining popularity in real estate. Make sure that the majority of these amenities are available within the property you wish to purchase.


4- Legal documents and fees

Similar to the purchase of any property across the world, investing in or buying a villa in Dubai cannot be completed without providing some legal documents in addition to paying certain fees.

There are 4 legally mandatory steps to follow before becoming a freehold property owner:

  • Pre-sale agreement: This agreement with the seller is the first step before signing the final sales contract. It allows you to negotiate, establish the terms of sale, payments methods. etc.
  • Memorandum of Understanding: Once you and the seller agree on the terms of the agreement, you have to sign the MOU or the sale contract also known as Form F to be retrieved from the Dubai Land Department website and signed, once completed, by both the buyer and the seller in front of a witness at the Registration Trustee office. 
  • No Objection Certificate: Apply for a NOC to transfer the ownership, which is usually issued by the developer against a fee after ascertaining that there are no outstanding service charges on the property. 
  • Property transfer: You must provide the Dubai Land Department with the following documents for the property transfer to take effect:
  • A check for the purchased property price payable to the seller
  • The original identification documents of the buyer and seller (ID, passport and visa) 
  • The original NOC
  • The signed Contract

As for the fees, you have to pay:

  • 10% security deposit on the property to the Registration Trustee, which is returned once the property transfer is finalized. 
  • 4% of the property value to DLD
  • AED 520 for the Title Deed
  • AED 4,200 Administration fees to DLD 
  • Agent’s fee of 2% of the property value
  • NOC charges from 500 AED up to AED 5,000


5- Price appreciation and capital gains

With the real estate industry booming in Dubai, properties are now much more affordable while the returns on property investment have surpassed European global cities. Besides, a drop-down by 5-8% is also expected this year. Consequently, price appreciation is the most significant benefit of real estate investments. Many people buy second properties as an investment as capital gains are significant, not to mention many benefits, such as citizenship to foreign investors, better visa policies, etc.


About Dubai Properties

Based in the UAE, Dubai Properties is a leading real estate master developer, renowned for shaping some of Dubai’s iconic projects

With over 16 years of experience in the residential real estate sector and a versatile portfolio of upscale projects, Dubai Properties has an in-depth understanding of the core needs of international purchasers.

We are committed to providing distinctive and enriching lifestyles for residents through our development projects across the Emirate.

Contact us today to help you choose the property of your dreams!



Please enter valid First name
Please enter valid Last name
Please enter valid mobile number (e.g. 50xxxxxxx)
Please enter valid Email
Are you a broker?:      

Thank You
Your message has been successfully sent.