subject: Transparency - A Major Challenge Faced By Dubai Real Estate Market [print this page] Since the beginning of 2012, everyone related to Dubai realty market is talking about recovery and growth of this sector without pondering over challenges that hinder its growth. Transparency is one of the biggest challenges faced by Dubai real estate sector and in order to make market more attractive for investors, this issue has to be addressed on urgent basis. Dubai is considered the most transparent real estate market of the UAE but it still falls back in transparency when compared with other countries. Seeing the spurts of growth, landlords have started increasing prices and rents of their properties. The living quality offered by some of the units does not justify the increase in sale price or rent. It is one big example of non-transparency in Dubai real estate market.
Dubai government and officials have been trying to attract more and more foreign investors but international investors do not understand the local dynamics and fall victims to non-transparent system. Be it a posh community like Dubai Marina, Downtown Dubai, Palm Jumeirah or a low end community like International City, The Greens or anywhere else, the non-transparent system can affect your investment decision. It usually happens due to lack of research from landlords side. If buyers and tenants do proper homework, they can fight to eradicate this issue. Lets discuss few tips that can help buyers and tenants get properties at good rates.
Do your homework!
If you want to get a good property deal, you must carry out proper research yourself. Do your complete homework about community status, property value, quality of life and availability of amenities before finalizing any property buying or leasing decision. You can take services of different Dubai real estate agents to learn about latest investment trends and the hot properties. Check online forums and take advice from Bayuts experts. Pick a number of properties that suit your needs with respect to budget and lifestyle and compare them. It will help you choosing the best of the available options.
Conduct a background check!
It is very important to know if the person you are dealing with is actually the owner of property in question. Therefore, you must check the title deed of property and verify it from different resources. If property was taken on mortgage, you must know if all payments have been cleared and the owner possess an NOC. This is to make sure if the seller is legally allowed to transfer property to buyer.
Hire services of Property Manager!
Once you finalized the property in Dubai, the crucial part of the deal begins. It is time to hire the services of a property manager to conduct a thorough survey of your property. You should know if the chosen property has structural issues such as leakage, or electricity wiring distortion. A property manager or a structural engineer can help you find the hidden issues and help you making the right decision. If you think you have chosen Dubai Marina apartments and it is supposed to have no issue, you are wrong. Do not take it lightly as spending little money initially can benefit you in the long run.
Secure right mortgage!
Once you have chosen a property and verified the title deed of the property, the next step is to arrange finance for your property. If you cannot arrange 100 percent finance yourself, you should choose to get loans from banks in Dubai and avoid being trapped by the non-transparent system. Banks and financial institutions have lowered their mortgage rates to facilitate more buyers. Check mortgage rates offered by different sources along with their limitations and repayment conditions and pick the ones that suit you the most.
By following the mentioned points you can fight the non-transparency challenges that exist in Dubais realty market.
