Market overview
The property juggernaut that was the Dubai of five years ago took a wrong turn somewhere along the way, but this doesn’t mean the country as a whole should be written off. Property values have once again been skyrocketing across the emirate to such an extent that some suspect another bubble could now be forming. Property value growth in 2014 alone is expected to top 10 per cent and a further four years of market growth is the prediction of business leaders. Just when it looked to be down, Dubai has once again proved to be the world’s most resilient property market.
Average selling prices
£553,201
£802,658
£488,975
£657,018
1,116,057
The Selling Process
Marketing your property
The majority of foreign investors looking to buy property in Dubai go throughthe big real estate brokers. It is worthwhile finding our about the resale servicesoffered by the agent or developer you purchase from. An alternative for sellers isto advertise online as the internet opens your property up to buyers in the localmarket and the overseas market. As the Dubai resale market is stilldeveloping, it is definitely advisable to appointto agent to act on your behalf.
Legal Documentation
Sellers must ensure they possess relevant property ownership documents andmake sure they have paid any outstanding tax or utility bills on their property.The seller is obliged to sell the property free from defects. The seller is liable fordefects, which reduce the value of the property, or prevent the use of theproperty for a particular purpose. If the property lacks a particular characteristicwhich the vendor claimed it possessed, he/she is liable.
Preliminary Agreement
Once you have someone interested in the property, an oral offer will usually bemade. At this stage, it is good practice to obtain a booking deposit from the prospectivebuyer or have the buyer sign a reservation form.
Contract
Once a verbal offer has been accepted, an initial real estate contract is drawn upand signed by both parties. In the second stage, the purchase contract stipulatingthe payment schedule is drawn up. This deposit is non-refundable unless theseller of the property in unable to sell to the buyer for some reason.
Legal Searches
Title searches are a must in every real estate transaction worldwide. As theconveyancing system in Dubai is still in its infancy, the buying ofresale properties is a little more complicated.
Deposite
To secure the property a holding deposit of anything from £1,000-£3,000 is paid.
Completion
Once the checks are completed and the buyer is satisfied, the contracts can besigned. A letter is then submitted to the Dubai Land and Properties Departmenton behalf of the buyer, stating that all payments have been completed. Only afterthis letter has been accepted will the property be registered in the buyer’s name.
Land registry
Once the buyer has fulfilled his obligations in terms of the sale agreement, youmust transfer a clear and unencumbered freehold title for the property to thepurchaser at the Lands Department as soon as reasonably possible after the completiondate.
Selling Costs Checklist
Once you have met these costs, you have paid to sell your home
Estate Agent Fees – If an estate agent is used to sell the property,they will be entitled to commission.
Disclaimer: All information contained within this guide is provided in good faith. Every effort has been taken to ensure that it remains up to date. However, some inaccuracies may occur. Before carrying out any property transaction overseas, we recommend seeking legal advice.
