As the Dubai real estate market continues to see an upward surge with demand from national and international investors, the market is expected to outpace the momentum this year. As more individuals consider investment in the city’s real estate, a growing number are first-time investors. But what exactly do you need to know before investing in property in Dubai?
“First-time buyers in today’s market have the luxury of being able to work with real estate companies which have been in the market for many years,” Charlie Bannan, Managing Director at haus & haus Real Estate said in an exclusive interview with Arabian Business.
“This should give people confidence that behind the individual agent they’re meeting, there’s a depth of experience to aid the process,” he added.
The Dubai real estate market is expected to achieve record-breaking numbers this year amounting to over AED400 billion, based on data from the Dubai Land Department (DLD).
Jacob Bramley, Leasing Manager at Betterhomes emphasised that “Engaging with a high-quality real estate broker is crucial when initiating a property search. For a first-time buyer, this is likely the most significant purchase they will make, underscoring the importance of seeking the best guidance and advice.”
Here is everything you need to know as a first-time homebuyer
Have a ‘wish list’
It is recommended to have a ‘wish list’ comprising of everything that you are looking for in a home including location, bedrooms, property type, timeline and the most important consideration – budget.
Bannan explained that, “After the initial viewings, one of two things will happen. You’ll either find the right home and move to offering and purchasing. Or you’ll be able to give some honest feedback to the agent on why the properties don’t ‘feel’ right – then they can arrange more viewings. Often, an agent may need to manage some expectations based on what’s currently available in the market.”
“The first step is establishing your budget. Be prepared to openly discuss your savings for a deposit, buying costs, and potential borrowing if a mortgage is needed. Delve into your non-negotiable requirements and ‘would-like-to-haves.’ A competent broker will possess detailed knowledge of communities and sub-communities, enabling them to align your preferences with a specific area and house type,” Bramley said.
“This ensures you are well-informed about move-in timelines and helps determine an appropriate offer,” he added.
Have adequate local community knowledge
Knowing about the local community is important, especially for those buyers with specific requirements, experts suggest. This includes features such as gyms, pools, supermarkets, traffic, amenities and more.
Choose a suitable real estate broker
Bramley suggests choosing a real estate broker with “multiple listings and a robust presence in your ideal search location.” This ensures recommendations that align with requirements and provide valuable community insights.
Financing mistakes and misconceptions
“I’d say the main misconception about financing property is the old saying ‘cash is king’,” Bannan said, suggesting that leveraging the bank’s money is “one of the smartest ways” to invest in the property market.
Doing this not only allows the investor to still have access to extra cash available but also “to purchase more than one home to allow rental income and offset part of the mortgage payment on their main residence – or on the flip side, purchase a more valuable home without the need to have the full amount sitting in their bank account.”
According to Bramley, borrowing from the UAE differs from many regions around the world, “making navigating financing a potentially tricky task.”
Having a trustworthy mortgage broker is advised and a common misconception revolves around deposits and fees “for which you would typically need to set aside a minimum of 26 percent of the purchase price to cover.”
“My ‘tip’ would be work with a larger Dubai agency that has a strong market share across the main expat communities,” Bannan explained, “This means the buyer can be confident that the agents they meet have a firm understanding of what’s available across the whole marketplace, as their company will no doubt be promoting and aiding the agents in ‘cross-selling’ between the active buyers and available properties within the business.”
Bramley suggests establishing affordability, engaging with a trusted and high-quality broker and doing several viewings. He asserted that a homebuyer needs to “act decisively” once the preferred property is found to be able to secure it at a reasonable price.
While the prospect of buying a first home is undeniably exciting, Bannan acknowledged that emotions such as nerves, fear, doubt, and stress can arise during the process. His advice to buyers is to “remind yourself why you started the journey of purchasing. It’s normal to become a little fearful during the process, but at the end, most people are thrilled that they are now homeowners.”
He advises to, “remind yourself why you started the journey of purchasing. It’s normal to become a little fearful during the process, but at the end most people are thrilled that they are now a homeowner.”
“Buying your first home should be one of the most exciting and memorable experiences in your lifetime. Ensure you engage with the best professionals throughout the entire process to make the experience as stress-free and enjoyable as possible,” Bramley concluded.
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