Expats in UAE urged to stay ahead in the property game

Buying property in the UAE’s secondary property market could be a wise move for expat investors.

It’s now generally accepted the UAE’s secondary property market is sliding gently towards the doldrums due to expat investors’ lack of confidence in the present rush to re-brand the emirates as a whole. According to local real estate experts, it’s now just a matter of time before the secondary market heads upwards from its presently low position, with expats advised to do their homework in order to be ahead of the revival once it starts. The first rule is not to rush headlong into anything, as that’s when potentially costly mistakes are made.

Picking your broker carefully is equally important, as what you see may not be what you get. Either accept a very trustworthy friend’s recommendation – preferably discreetly checking out the friend as well – or search the web for reviews, discarding all with any negatives of any kind. The second step is to make certain your chosen broker understands your needs fully, then let them do the hard work involved with weeding out dodgy property ads and suchlike. You’ll pay the same fees however much they do or don’t do. Checking whether your chosen broker is legally registered is a must, with Dubai’s and Abu Dhabi’s official websites holding lists of legally registered brokers.

When the property market is as hot as the weather, everyone and his grandmother, favourite aunt and third cousin morph into ‘real estate brokers’ who can guide you to the perfect property. It gets confusing if you want to view several properties as each requires its very own broker, who can’t tread on the toes of any other broker. If you can successfully survive this process and have found a property you love at the right price, you’re doing really well. Lastly and crucially, losing your deposit is a real threat unless you’re very, very careful.

For most expat buyers, the deposit cheque represents a great deal of cash, with using one of Dubai’s expert conveyancing firms the safest idea as regards peace of mind. Your cheques will be held and you’ll receive a professionally drafted pre-sale contract. If you’re in Abu Dhabi, paranoia is your best defence as conveyancers haven’t really taken on as yet and your cheques are held by your broker. Your pre-sale contract works as a Memorandum of Understanding, stating when and how your deposit can be returned should the sale not proceed, and can be either well-drafted or a legal and linguistic disaster. The final rule is to never, ever, make out your deposit cheque in your broker’s name.