Guide to buying on the secondary market
Buying an apartment or villa on Dubai's secondary market, the step-by-step process.
1 - Financial planning
It's essential to accurately determine your total budget for any real estate purchase. This is even truer for a purchase on the secondary market, as the full amount should be paid to the seller at the time of the transaction. In Dubai, only 20% of property sales are made via bank credit, so the seller will expect to receive the funds quickly.
To minimize delays and avoid unnecessary visits, it's essential to take stock of your finances and financial capabilities. If you're thinking of buying on credit, we recommend that you meet with a mortgage broker before you start your search. This professional will be able to tell you the maximum budget you can devote to the purchase, based on your repayment capacity and profile.
To determine your eligibility, the credibility broker will ask you for the following information:
- Copy of your passport
- Copy of your Emirates ID or proof of identity
- Copy of your visa (if resident in Dubai)
- Last 3 pay slips
- Last 3 bank statements
- "Credit Score, issued by the Dubai government or by your usual bank
If you decide to make a cash purchase, you'll need to factor in all the additional costs, to be added to the price of the property:
- 2% agency fee + 5% VAT, the norm in Dubai
- NOC fee, the document issued by the developer to authorize resale, up to €1250
- 4% Dubai Land Department fee, for registration of property transfer
- Up to €1,000 Trustee Fee for property transfer formalities
These fees can sometimes be included in bank financing.
Take all these factors into account to determine your budget, then move on to step 2!
2 - List your search criteria
To be effective, you need to list your search criteria, otherwise you risk wasting a lot of time and not finding the right property for you. We have listed below the criteria you absolutely must define before starting your search:
- Property type: apartment or villa
- Number of bedrooms and surface area
- Neighborhood: limit your options to 2 or 3 neighborhoods maximum
- Distance from your workplace and/or your children's school: what are you prepared to accept?
3 - Searching for the right property
Dubai Immo has a dedicated secondary market department. As such, we are able to present several hundred properties, both apartments and villas. Some of these are under exclusive mandate, while others are part of our network of partner agencies. However, we also recommend that you consult the essential websites for apartment rentals in Dubai. PropertyFinder, Bayut and Dubizzle are among the best. You'll find almost all properties for sale in Dubai, including those from our agency Elysee Vendome Real Estate LLC.
How can you tell a genuine ad from a fake one?
Unfortunately, many real estate agencies publish fake ads, simply to obtain contacts from potential buyers. When visiting real estate portals, be sure to read the ad description carefully, and check that the text matches the photos. We also recommend that you check the date of publication of the ad. If it's been published several months ago, it's probably obsolete.
4 - Visits
If possible, group visits on the same day and in the same area. In Dubai, some agents specialize in specific areas. They can sometimes present you with several options in the same building, community or neighborhood. We recommend that you focus your search on a maximum of 2 or 3 agents, otherwise you'll be harassed by every real estate agent in Dubai. You also run the risk of giving property owners the impression that dozens of people are interested in their property, whereas you may be the only one, and this could have an unfortunate direct impact on the final sale price by negatively affecting your negotiating skills.
When visiting properties, be sure to check that everything is working properly in the apartments, especially the shower pressure, which is sometimes poor in Dubai. In the case of villas, don't hesitate to climb onto the roof! We also strongly recommend that you visit all communal areas, and even ask people you meet what they think of the residence or community. Also, check to see if there are any empty lots near the property, in anticipation of any future nuisances. If you like a property, make a note of any shortcomings, as this will help you when it comes to negotiating!
5 - You like a property? Make an offer!
You'll rarely have the opportunity to save so much money in such a short time, so don't miss out! See below for negotiable items:
- The price
- Include furnishings in the purchase price
- Include appliances in the purchase price
- Include landscaping in the purchase price
How can I negotiate the price of a property in Dubai?
We have access to the sale prices of all apartments and villas in Dubai, in all residences and communities. Don't hesitate to ask us for these figures, as they will enable you to negotiate effectively with a seller who might ask for more than the market price. If you pay cash, without bank credit, and promise a quick sale, this can also enable you to negotiate the price slightly. A seller will always prefer to do business with a buyer who already has the funds, and who will not add a suspensive clause to the purchase contract.
6 - Signing the sales contract
Once the terms of the contract have been agreed by all parties, the administrative phase can begin. Here are the documents you'll need to provide to the owner or his real estate agent, so that they can prepare the sales contract (F Contract):
- Copy of your passport
- Copy of your Emirates ID
- Copy of your visa
These documents must be valid.
You'll also need to provide a security deposit, usually 10% of the sale price.
If you're buying on credit, remember to include a suspensive clause in case you don't get your loan.
In the event of a defect, or if you fail to honor the sales contract, you risk losing your security deposit.
The sales contract will be signed online, and you will receive an email and SMS from the Dubai Land Department.
Remember to check that no clauses have been added to the sales contract without your knowledge. Don't hesitate to ask any questions you may have, and to clarify every point. Don't sign in a hurry.
7 - Obtaining the NOC
The NOC (Non Objection Certificate) is issued by the developer and/or the company in charge of managing the property. The latter will check that the seller has no outstanding debts relating to the property. Issuance of the NOC is essential for final validation of the sale by the Dubai Land Department.
8 - Transfer of ownership
Once the developer has issued the NOC, and the bank has approved the financing, an appointment can be made at a Trustee Office. The seller, buyer or their representatives must be present. A representative of the bank, in the case of bank financing, will also be present, as will the real estate agent. The trustee will check the check and the validity of the documents presented, and validate the transfer of ownership. This procedure takes about 15 minutes.
9 - Congratulations on your purchase!
Once the transaction has been validated by the Dubai Land Department, you will receive your title deed or Oqood directly by email, following your appointment at the Trustee Office. The seller will also give you the keys to the apartment or villa, as well as any access cards.
Are you looking for a property?
Contact our Secondary Market department managers, Zoé and Fabien!