28 April 2023, Zawya
The process of buying a property in Dubai has been greatly streamlined and made much smoother thanks to the implementation of innovative processes and functions. Once a seller accepts a buyer’s offer, both parties sign a unified form that combines the selling and buying documents. If the buyer is obtaining a mortgage, the property undergoes a valuation to ensure its value is justified, and a valuation report is produced if the price is deemed appropriate. With the Final Offer Letter, the mortgage funds are released to the seller.
To proceed with the transfer of ownership, the seller applies for a Non-Objection Certificate to confirm that the developer approves of the buyer’s purchase and that there are no outstanding payments due. Once this certificate is received, the seller and buyer meet at a trustee office, a designated government building, to finalise the sale. At this meeting, the buyer transfers the funds, and the seller hands over the NOC and the title deed to the buyer, completing the transaction.
Residential properties are not subject to Value Added Tax, but a purchase of commercial real estate is subject to around 5 per cent VAT.
Strong demand continues to drive prices higher in apartment communities across Dubai. Al Habtoor City recorded the strongest growth, with apartment prices up a sizeable 24 per cent to Dh1,818 per sq. ft. Barsha Heights and Living Legends also recorded double digit price growth, up 11 per cent and 10 per cent respectively.
Whilst Nad Al Sheba saw modest growth in villa sales prices of 4 per cent in 2022, it was the fastest growing community this year, with prices rising 8 per cent to Dh722 per sq. ft. Continued demand for mid-to-high end villas led to sustained price growth in popular communities like Jumeirah Islands, MBR City, Arabian Ranches and Dubai Hills Estate, which all saw 5-8 per cent price growth in 2023.