Dubai tenants and buyers must consider a few essential factors when evaluating properties in the region, experts told Arabian Business.
From amenities and safety to legal considerations and resale potential, the experts advised individuals to make informed decisions, before taking the leap.
When assessing a property, location, amenities, and budget were identified as crucial factors by Robert Stevenson, Head of Lettings at Allsopp & Allsopp said.
What to look for in a Dubai property
“What we have noticed is that apartments that have been somewhat upgraded tend to get better results from the market. It can be wrapping the kitchen to better gyms and spas within the building. This is particularly important for young professionals who have relocated to Dubai,” he said.
Ainsley Duncombe, Founder of Off-Market Listing (OML) Dubai also stressed on the significance of reputation and previous projects of the developer.
“One thing to think about is the reputation and previous projects of the developer, while location is always a priority – that’s one thing that can never be changed. Potential buyers or tenants should look at the accessibility both outside and inside the property and check things such as rush-hour traffic, speed and number of elevators – all things that will make a daily impact on accessing the home,” he explained adding that exploring the included facilities, such as pools, gyms, and play areas, is also encouraged.
Assessing a property’s condition for repairs or renovations was another key aspect discussed. “The tenant can assess on the viewing the condition of the property and would need to specify any repairs they want to be completed when making the offer. It can then be included within the contract so the Landlord is bound contractually to complete the works,” Stevenson said.
However, Duncombe suggested independent inspections and seeking insights from other owners in the area to gain a comprehensive understanding of any potential issues.
“There are four things you can do for this – View the property yourself to check the condition, pay to have an independent inspection take place on the property to ensure there is nothing that could later be an issue, such as sewage, electrical, plumbing and pipes etc., view previous older projects from the developer to get an idea of areas where renovations may have been required and speak to other owners in the area.”
Identifying red flags in Dubai properties
According to Stevenson, “if the property is in a poor state of repair and the landlord is not open at early stages of rentals for repairing it.”
Duncombe further explained the importance of ensuring that all necessary documentation and approvals for renovations or major changes are in place.
“It’s important that if the property has had any major renovations that all the necessary NOC (no objection certificates) were issued at the time of the work being done. Some banks may not give finance if these are not in place and even if you are a cash buyer at time of purchase, it’s still important to have the approvals documentation as the person buying from you in the future may be utilising bank finance; if you don’t have it, this could cost you a potential sale. Another thing to look out for is if the prices are not clearly laid out, or any outstanding fees or bills not paid,” he said.
When evaluating a property’s construction quality and durability, Duncombe recommended considering the developer’s track record and the materials used. Reviewing past projects and assessing their condition can provide valuable insights into the developer’s reliability and attention to detail.
In terms of legal and regulatory considerations, Stevenson highlighted the importance of verifying the validity of the Title Deed and checking for outstanding service charges.
“When renting we always check that the Title Deed is showing as valid in the Dubai REST app and this App also shows if there are any outstanding service charges on the landlord’s side – if there are we will ask for proof of payment so there is no knock on impact to the Tenant if these are not settled,” he said, cautioning against “emotional attachments” that could lead to overestimating rental prices.
Duncombe, on the other hand, reminded buyers to confirm the number of parking spaces and test the school run or office commute during rush hour to avoid potential inconveniences.
“If the build of the property has been renovated or major changes carried out, the correct documentation for these changes must be in place. Sometimes people see a new build and forget to ask for the documentation to support this. If you are purchasing off plan, it’s important to check that an escrow account is in place to secure your funds are kept safe as the build takes place. You should always use a licensed RERA brokerage to process any transaction whether it’s buying or selling a property,” he said.
Negotiating costs, additional fees
In terms of negotiations, Stevenson advised tenants to clarify what is included in the rent, such as chiller fees, and negotiate furniture and white goods.
Duncombe also stressed on the importance of factoring in additional costs, such as DLD and trustee office fees, and negotiating conveyancing or legal charges.
In addition, both experts emphasised the importance of considering property insurance and maintenance costs.
“You should already know the running costs for your property, if it’s a villa for example you should already know the swimming pool total running costs including chemicals, labour and power costs. Costs such as summer DEWA bills, or water usage for the garden are all important to understand as it is these kind of expenses that can end up being more than you anticipate and can mount up,” Duncombe said.
Echoing the sentiment, Stevenson added that “tenants should always take out an insurance policy for their own contents. With regards to maintenance, it is usually specified within the contract that the tenant is responsible for works to a set cost limit and over which it will become the landlord’s responsibility.”
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