Purchasing property in Dubai directly from a developer is a straightforward yet detailed process. Below, we outline the step-by-step journey to help you understand what to expect when buying your dream home or investment property.
1. Booking and Expression of Interest (EOI)
The first step is to identify the ideal property that matches your requirements. Once you’ve decided, most developers require an Expression of Interest (EOI) along with a refundable booking token. The size of this token varies depending on the developer, typically ranging from AED 25,000 to 5-10% of the property value.
2. Down Payment and Signing the Sales and Purchase Agreement (SPA)
After the initial booking, an additional 10-15% of the property’s value is generally due within 30 days. During this time, the Sales and Purchase Agreement (SPA) is drafted and must be signed. If you are not based in Dubai, the SPA will be couriered to you for your signature and returned to the developer’s office.
3. Dubai Land Fee and Property Registration
At this stage, you’ll need to pay the Dubai Land Department fee, which amounts to 4% of the final purchase price. Once this fee is settled, the property will be officially registered under your name. The title deed will be issued electronically upon the project’s completion.
4. Payment Plans During Construction
Developers offer flexible payment plans during the construction period. These plans typically require 50-70% of the total purchase price to be paid before handover. The remaining balance is due upon handover and can be settled in one of the following ways:
- Using your equity
- Mortgage financing
- Paying the full amount upfront on the day of purchase
5. Off-Plan Property Delays
When purchasing off-plan properties, it’s wise to anticipate a delay of 6-12 months from the estimated completion date. While delays can occur, top-tier developers are often known for delivering properties ahead of schedule.
Final Thoughts
Understanding the buying process can help you navigate it with confidence. From booking your unit to receiving your title deed, each step brings you closer to securing your investment. For a seamless experience, it’s essential to work with reputable developers and stay informed about the timeline and costs involved.
By being prepared, you can turn your property purchase into a rewarding journey.
