Investors Guide to Dubai property rentals The tough conditions that saw Dubai property rentals taking a dive until not so long ago; seem to be quickly turning into a thing of the past. In-fact, reports are coming in, of property prices going back to the fantastic levels of yore, back in 2008. A steady rise in the rental agreements is being observed and recent trends have begun giving people some hope again. Fresh stock is being added to the property market with a significant portion of these being of the free-hold type. The demand for residential apartments for rent in Dubai has not been uniform, with certain premium locations garnering greater attention than the rest. On the broader scale however, the lure of a Dubai villa has proved to be quite strong and demand for them has been higher in comparison to the demand for apartments. Whether it is the prestigious palms and other island developments or the ever popular Marina development, the beachfront remains a prime choice for those looking to invest in a property to rent in Dubai. Warm climatic conditions, a cosmopolitan environment, quality infrastructure and a vibrant world-city culture all contribute to the popularity of Dubai as a top notch property investment destination. This appeal has only increased since laws that encourage international residents to purchase and own property in Dubai have been implemented in the past ten years. Investors looking to purchase a property in Dubai can either approach the owner of the property for a resale transaction or can purchase them direct from the property development firm. The development firm in charge of building the property in question usually requires a certain token amount to reserve the property in favor of the purchaser. This way, the property cannot be resold to another entity. In case of properties still under development, the payment is split 50:50, with half the amount being paid before hand while admin charges, miscellaneous building fees and the remainder of the property cost being paid when the construction has been completed. On the other hand, for properties that are already built, one merely has to pay up all the fees and admin charges to take possession. The signing of the contract then takes place. This involves the transfer of the purchase price, whether in full (with regards to properties already built) or half the amount (for under-construction properties).
Two documents are then sent to the purchaser. One comes from the property development firm and consists of the ownership papers while the title deed comes from the Dubai Land Department. Resale properties have a slightly altered transfer process that usually begins with the signing of the re-sale agreement. A signing amount is usually involved and is about 10% of property cost. This is to reserve the property in the purchasers name and prevent it from being released to the market. The property dealer/brokerage firm then steps in to prepare all the paperwork and documentation that is required to affect the transfer of ownership. The existing owner and the new owner then have to submit their necessary identification and eligibility papers to the Dubai Land Development Authority for processing. Upon receiving the approval, the purchaser has to make the payment in two installments. The purchaser has to then make the final tranche of payment including the transfer fees to secure the title deed in his/her name and complete all the formalities. Investing in a Dubai property rental is one of the safest purchases in the world. For realty bubbles may come and go, but the quintessential charm of Dubai will shine through for decadesto come.
Published on May 21, 2012
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