7 steps to take while buying a property in UAE

7 steps to take property in UAE

Dubai Real-estate
July 29, 2024•1 min read

Buying a property in the UAE can be an exciting yet complex process, whether it's your first home or an investment venture. This guide outlines seven crucial steps to help buyers understand the process, from assessing affordability to completing legal formalities.

1. Check Your Affordability

  • Determine your affordability by assessing your income, down payment capabilities, and credit score.

  • Calculate potential borrowing capacity based on income and Debt-Burden-Ratio (DBR).

  • Understand the minimum down payment requirements and its impact on loan-to-value (LTV) ratio.

2. Start Saving

  • Prioritize saving for a down payment to improve LTV ratio and reduce borrowing costs.

  • Allocate funds for additional expenses like legal fees and property valuation.

3. Know Your Ideal Property

  • Identify key priorities for your property, such as location, amenities, and future needs.

  • Consider factors like proximity to work, schools, commute time, nearby facilities, and community regulations.

4. Buying Property in the UAE as an Expat

  • Understand restrictions and regulations for expat buyers in different Emirates.

  • Differentiate between freehold and leasehold ownership and their implications.

5. Get an Approval in Principle

  • Obtain an Approval in Principle from your lender to gauge mortgage eligibility.

  • Provide necessary documents like passport, visa, salary certificate, and income statement.

6. Make an Offer

  • Research local property prices and negotiate with sellers based on market trends.

  • Assess property value and conditions before finalizing an offer.

7. Apply for Your Mortgage and Complete Legal Procedures

  • Select the appropriate mortgage type and apply for financing.

  • Undergo a credit check and property valuation as part of the mortgage application process.

  • Fulfill legal requirements such as signing Memorandum of Understanding (MOU), obtaining No Objection Certificate (NOC), and acquiring the title deed.

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