When to think about buying a property in Dubai

• Being Financially Ready
• Major Life Change Ahead
• Your Rent Is Increasing
• FAQs On When To Buy Property In Dubai

Whatever stage in life you’re in, the question of when to buy property in Dubai might be fresh on your mind. And who can blame you; the city is booming with gorgeous properties, each offering a lifestyle that’ll evoke longing for the same in people living in other parts of the world. So we will help answer this question with the questions you should ask yourself to know if you’re really read to buy property in Dubai.

Here’s the truth: buying a property is a big life decision to make. It involves a significant financial commitment for a period of time, which can be intimidating for many. And that’s okay! Keep reading to really ask yourself if you’re ready for your Dubai property journey.

You’re Financially Stable

The first (and most important) factor in buying a property is the money involved. Typically, a large amount of money is required to buy a property in Dubai and you need to think about whether you can pay this off.

Whether you’re an entrepreneur or an employee, you need to ask yourself: how stable is your income? Think about the money you’ve been making over the last two years. Is your income stable and consistent? Is the market you’re in a stable one?

If you’re employed by an organisation, think about what the work conditions are like. Is it a place that lacks stability, where people can get fired at any moment? Are you genuinely satisfied with your organisation, such that you can actually stick around for a while?

Another key aspect to consider if you plan on getting a mortgage in Dubai is: what does your credit score look like? Having a good credit score will increase your chances of obtaining a pre-approval on your mortgage.

You can afford the down payment

A down payment is the initial payment one must pay for the property. It constitutes a percentage of the property’s sale price. A common mistake made by first-time homebuyers in Dubai is not being aware of the down payment involved and ending up taking personal loans to pay it out.

In Dubai, the down payment for a property is 25 per cent for expats and 20 per cent for Emirati citizens. To put this into context, if you want to buy a property for AED 1M, you will have to pay AED 250k if you are an expat and AED 200k if you are a UAE citizen, as upfront downpayment.

Now, these figures may sound a bit too much for many – but if you are thinking about when to buy property in Dubai, you need to have your downpayment in order. For starters, check out our guide to saving up for a downpayment in Dubai. We discuss in detail how to leverage a savings account, cutting expenses and setting a time frame.

And yes, if you don’t have your down payment sorted, it’s best not to take the plunge and buy a house in Dubai. Perhaps rent a cheaper apartment in Dubai, save money, and then consider buying a home.

You’ve factored funds for additional costs

Obviously it is important to consider the cost of buying a property in Dubai, so you can be prepared for it. Budgeting for a property doesn’t just stop at its total price; you’ll have to factor in things like the agent’s commission, DLD fee, service charges, etc. Knowing how much your initial out-of-pocket expense would be, is the first step in determining your readiness for this decision.

Once you have bought the property, you will also have to consider things like maintenance costs and association fees. Apart from these, you might also have to be prepared for events like broken pipes or air conditioning

So, adjust your budget accordingly, factoring in additional expenses.

Square foot rates of property are lower

If you’re considering when to buy property in Dubai, we really hope you’re monitoring property prices and market trends constantly. This is the ideal way to ensure you make a wise property decision.

When monitoring trends, look out for when the square foot rate of a property in the area you’re interested in drops. It’s rare, but can happen!

Unlike other countries, there is no best time to buy property in Dubai. But, there is a trend of sales transactions in the third quarter being the lowest in the year. You could look out for similar times of the year for the right time to buy property in Dubai.

A few examples of it being a good time to buy a property in Dubai include the summer months, public holidays and festivals. Monitor the market fluctuations using tools like Dubai Transactions to stay abreast on the price dips.

Major life change: You’re going to be in Dubai for a while

Have you transferred to Dubai for work and plan to be in the city for a while? Or, you’re expecting your first child and are looking for a bigger space for the family. Or, you’re retiring and want to spend most of your time in Dubai.

Whatever the situation, these life changes also mean you’ll be in Dubai for a good amount of time. This is a good time to think what is more feasible: renting a house throughout your stay or purchasing a home, wherein – instead of paying rent, the funds go towards paying off your mortgage.

Of course, when making this decision, check that you’ve ticked off your budget and have factored in the costs (as we discussed above). Also, make sure that you won’t be making any job changes or dealing with income fluctuations.

Your Dubai rent is going up

Lately, the rent in Dubai has always been on the rise – owing to the demand for properties emirate-wide. If you, like most people, are seeing your rent going one way up, it’s probably best you switch to buying a house.

Think about it: if your rent just keeps increasing, there is no way you’ll be able to keep your budget in check – especially if you’re planning to buy a home in the future. The only way you can actually have full control of your home is to be a homeowner. If you’ve been saving for a home for a while, this is your sign that it’s the right time to invest in Dubai real estate 2024.

Frequently Asked Questions

Can an expat take a mortgage in Dubai?

Yes. In fact, there are quite a few types of mortgages in Dubai – such as offset mortgages, fixed-rate mortgages and more that they can consider. Non-residents of Dubai have a mortgage available too, for those with property dreams. Knowing this information can be useful after deciding when to buy property in Dubai.

How can I choose between off-plan versus ready property in Dubai?

Off-plan properties in Dubai are those that haven’t been constructed yet. There are a few things to consider before buying off-plan in Dubai, like being aware that the market can fluctuate and that the quality may not be what you expect. Our guide can help, so will talking to the developer and taking all the notes you can.

Another resource that can be of help is familiarising yourself with how to buy property in Dubai. Knowing the legalities can ensure that you adhere to the law throughout your property journey.

How can I identify areas with the best ROIs in Dubai?

To identify the best areas in Dubai to invest in, we’d recommend looking at resources like our Market Reports. We also have a guide to the areas in Dubai with the best ROIs based on the data from Bayut.

And that’s the end of our discussion on when you should buy a property in Dubai. This is a question that requires a lot of thought, and we hope our prompts help. The pros and cons of buying property in Dubai must be considered before taking any giant steps.

For more property talks, stay tuned to MyBayut, the UAE’s biggest property blog.