The property market in Abu Dhabi has evolved a lot over the last decade. The fact that foreigners can now even own the freehold of the land and the properties they buy has provided an additional boost for the Abu Dhabi real estate market.
Furthermore, if you want to gain a better picture of the market, websites like FazWaz list properties of all kinds in every part of the city. Then there are property market reports by renowned firms like Asteco, Colliers, Cluttons, and Cavendish Maxwell. The Royal Institue of Chartered Surveyors verifies each of them.
Once you narrow your search to a few properties that match your criteria, you should start inspecting properties personally. That way, you can choose one that you like most. Once you set your eyes on some particular property, come to the next stages.
Financing & Fees
Most local banks offer loans to residents with at least a six-month visa. Typically, the value of the loan is up to 75% of the property value. That leaves you to find the remaining 25% to make a down payment for the deposit.
On top of it, the buyer needs to pay an agency fee of 2% when the property is transferred to his/her name. Plus, two more percent is paid to the Abu Dhabi municipality.
The fees can be split between the seller and the buyer with the help of the Memorandum of Understanding (MoU). This is an important document that is required by the banks when applying for a mortgage.
Additional documents asked by the bank include
- Employment letter featuring a salary certificate
- Emirates ID
- Copy of your passport
- Valid Visa
- No Objection Certificate (NOC)
In terms of process, agreeing about the MoU is one of the first steps that includes both the buyer and the seller. Both parties must sign the MoU agreement, and that needs to be witnessed. Typically, the signing is witnessed by the agent.
After the loan application is opened, the bank will send someone to evaluate the property. They make a full report that establishes whether the property is being purchased at a fair price within the market margins.
When there is a mortgage attached to the property, it is the buyer’s bank that deals with the seller’s mortgage. If not, the buyer’s bank will issue a manager’s cheque that will be later given to the seller directly.
Once all the procedures between the banks are completed, the agent organizes the property transfer.
Last, if possible, all parties (seller, buyer, agent, bank representatives) meet at Abu Dhabi’s Municipality to finalize the purchase and officially transfer the property to its new owner. Once the title deed is received, the procedure is completed in full.
Buying apartments in Abu Dhabi is fairly simple and straightforward. Local real estate agents are well-versed in all procedures and can guide you through the entire process. Banks and local administration are also quite open and efficient. So, the only thing left is to make sure you buy a great piece of property, and you get a good price for it.