Buyers from all over the world have a growing interest to invest in Dubai. With a booming property market, a strong economy, and an international hub for business, Dubai is a very attractive real estate destination. But as with every other industry, investment, or decision, buyers should be aware of the pitfalls and challenges they might face in the respective scenario. Let’s discuss some of the issues that a buyer might face unexpectedly when investing in Dubai.
Long Delays in Handover: The buyer might book a property with plans to move in or make ROI via flipping or renting. Long delays can cost the buyer if their budgets run out or if they require ROI within a specific time frame.
Bank Valuation Shortfall: Bank valuation for mortgages can sometimes offer lower prices than the original price. If the bank evaluates a lower price, the buyer has to cover the rest. Delays in providing the rest of the amount will cost the buyer to lose the deal.
Developer Design Change: Off-Plan property developers can change the design of the property. In a scenario where the buyer chooses a property with a large balcony, the developer can decide to change the area of the balcony or even remove it to add more space to the interior areas.
Missed Oqood Registration: Delays in registration will lead buyers to face expensive and very long legal issues that may result in losing the property as well as the paid installments.
Service Charge Shock: Being unaware of the accurate service charge values can end up costing the buyer a heavy amount in annual service charges that may reach around AED 40K in certain properties.
Unlicensed Agent Scam: There are a lot of unlicensed agents in Dubai in response to the growing boom in the real estate industry. Therefore, losing money on a property booking is highly likely if the buyer doesn’t make sure that their agent is not legitimate.
Post-Handover Defects: Unvetted developers may offer fast handovers and lower prices in the market, but they might deliver properties with faulty fixtures and defects. The buyer will have to sell or renovate the property and lose money while doing it.
Mortgage Approval Issues for Expats: Different nationalities have different regulations when moving monetary assets to invest in Dubai. Not understanding the process will result in the buyer losing the property deal.
Misleading ‘Sea View’ Marketing: Certain ‘Sea View’ properties have unobstructed sea view during the construction phase or even when handed over, but they may be obstructed by the construction of other developers who have plots by the waterfront. This can cause the value of the property to drop drastically.
While there are a number of challenges and pitfalls that a buyer should be aware of when entering Dubai’s property market, being properly guided and informed can help them invest securely. Even though you are not from the UAE, if you seek assistance from an expert and legitimate property consultancy, you will be informed of every step of the transaction ahead of time, eliminating all challenges that may slow down the deal.
At Anarock Middle East, we make sure that every part of our clients’ transactions are handled with speed, transparency, and legitimacy. With close relationships with Dubai’s leading developers and service providers, we are able to assist you in finding property solutions that fit your unique requirements. Talk to us about your requirements prior to investing and start an informed journey into Dubai’s real estate market.