# Buy or rent a property in dubai?



## WayneR2 (May 6, 2011)

Hi All,
I'll be moving to Dubai next month and plan to stay for 3-4 years. I am undecided on whether to Buy or Rent. 

I viewed some apartments in the Marina, Palm, Greens during my last visit to dubai and would like an opinion on which of the 3 is considered to be the best location for a small family (my wife and a young child). 

I would prefer to purchase a property rather than rent. However I'm quite concerned about the vast number of properties for sale on the market. Also had a worrying conversation with a Realtor who refused to show me properties on Dubai Marina as he considered them to be "Overpriced". Any views?

Would appreciate some advice on the above (1. location, 2. Buy or Rent).

Many Thanks

W


----------



## Canuck_Sens (Nov 16, 2010)

Why do you prefer buying ? are you planning to stay long term ? Or just to have the peace of mind that you owe a place ? 

What I suggest you doing first is to come here and rent. Try to figure out during that year (you might need more years) if Dubai is for you. After one year, you might realize that perhaps Dubai is not for you and for your family.

You might also realize that Dubai is a great place to spend vacation. What I am saying is that it depends. I think you need to get a hold of the emirate first and the culture, laws, customs and weather.

You will need to think about your kid's future too. Some families are ok raising their kids here, some are not. Some come here to make quick money and go back, some stay longer and try to make Dubai their home. Some are tempted to stay longer to make more money and they realize at the end they spent far too much time here.

I honestly think that you would need couple of years.


----------



## md000 (Dec 16, 2008)

Hmm. I've lived here almost 3 years now (all renting). My wife and I are (and have been) interested in buying. We know the "lay of the land" and are still not comfortable buying. Why?:

1) UAE fixed asset ownership (i.e. housing) is covered under local law. period. Therefore, "strange" and "unfamiliar" inheritance structures are in place to transfer assets at the time of death. This is not the United Kingdom. In order to cover yourself, my understanding is that you should set up an offshore company through Jebel Ali Offshore company in order to protect your family from the house being transferred to ?? Hire a real estate lawyer. Basically, inheritance laws impeded easy buying.

2) Owner's Associations (OAs) vs. Master Developers (MDs): Right now, the law is clear: Each development must have an OA. Operationally, this is not happening and there is no enforcement of the unclear legal structure. MDs are not delivering what they promised. Many owners are not paying fees and services are being withheld (like filling pools, garage access, development cleaning, etc.). Really, it is a MESS. In addition to the mess, there is no legal standing to punish an owner who hasn't contributed to the OA. Finally, the current service fees are set by the MD who tendered out the contracts to their buddies. Now, this is changing. Slowly, but impeding growth.

3) Incomplete developments. As you are probably aware, Dubai has had some issues. If you are looking into buying an "almost complete" place. Stop. There are people who have been waiting 3 years to receive their apartments/homes and the MDs have used force majeure to not deliver. 

4) Pricing. If you drive down the streets, you will notice a LOT of dark flats. Why? Investors have sunk their money into a ton of flats and are trying to ride out the bottom. Sadly for them, more and more flats are coming onto the market right now. Prices are still going down with all of the fresh supply. 

As Canuck_Sens mentioned: Come here, get comfortable. Rent for a year and get the lay of the land. Understand the local market, look around for the right fit. 

-md000/Mike


----------



## Maz25 (Jul 6, 2008)

To add to the 2 posts above, you also need to consider the infamous 'service fee'. Whilst property prices have been plummeting, service fees have been going up and up. Particularly with apartments, if the vast majority of owners refuse to pay their service fees, the developers simply drain the pool, close the gym, etc and despite having paid your service fee, you also get penalised.

Unlike in the UK, you cannot just get planning permission and extend a property. You always have to go back to the developer, who will read you a long lecture about the 'look and feel of the community' and point blank refused. If the house falls down on your head, you have to go back to the developer again to have it rebuilt. Bear in mind that most buildings have an average lifespan of 30 years. I moved into a brand new apartment and owing to the state of the building (it's 2 years old), it will not last 30 years unless there are some major interventions on the part of the developer!

I work in construction and I can describe the building quality as been shoddy at best! I would not buy a property in this country. There are just too many ambiguities, which complicates things!

@ Mike - Re your Point 3, I had to laugh when I saw that. So the developer reckons that recession is an act of God aka force majeur! Properties lawyers anywhere else would have had a field day with that and the developer would be broke by now!

@ Wayne - I am curious about the comment that properties in the Marina are overpriced and therefore the agent is refusing to show you any. On the basis that the agent gets a % of the sale price, then I would think that he would have been eager to sell the property. The Marina is also a well established community, with shops and amenities nearby, which would make the properties a lot easier to sell. I'd hazard a guess he was trying to steer you towards the properties that he can't shift - who easier to sell a hard-to-property to than someone who has just arrived and has got limited knowledge of the market!

My advice, as others have said, is to rent for a while. Give yourself time to understand the market and then go from there.


----------



## md000 (Dec 16, 2008)

Maz25 said:


> @ Mike - Re your Point 3, I had to laugh when I saw that. So the developer reckons that recession is an act of God aka force majeur! Properties lawyers anywhere else would have had a field day with that and the developer would be broke by now!


The Master Developers are using force majeure successfully now. I don't know how, but the legal system here is letting them.

-md000/Mike


----------



## WayneR2 (May 6, 2011)

Thanks for the excellant advice guys. I think I've made up my mind; will rent for a year and take from there. 

Which of the following locations would you recommend for renting a 2 bed apartment; Marina, Greens, Palm J or JBR?


----------



## Jumeirah Jim (Jan 24, 2011)

:tongue1:


WayneR2 said:


> Thanks for the excellant advice guys. I think I've made up my mind; will rent for a year and take from there.
> 
> Which of the following locations would you recommend for renting a 2 bed apartment; Marina, Greens, Palm J or JBR?


Those are all good areas to look. When you get here you will soon get a feel formeach area. Best then to focus your search on that area otherwise you will have too much choice as there's loads on the rental market now. 

All the contracts here defined force majeure ridiculously widely, so widely that it allows the master developers and sub-developers to blame anything on force majeure. Unfortunately most investors didn't read or get advice on the contracts they signed. Without proper laws to protect investors developers are able to get away with stringing people along amost indefinitely..


----------



## Bigjimbo (Oct 28, 2010)

Jumeirah Jim said:


> :tongue1:
> 
> Those are all good areas to look. When you get here you will soon get a feel formeach area. Best then to focus your search on that area otherwise you will have too much choice as there's loads on the rental market now.
> 
> All the contracts here defined force majeure ridiculously widely, so widely that it allows the master developers and sub-developers to blame anything on force majeure. Unfortunately most investors didn't read or get advice on the contracts they signed. Without proper laws to protect investors developers are able to get away with stringing people along amost indefinitely..


Palm costs the most but is generally a bit bigger, and most times you have a private beach. Marina and Greens are ok, but I personally hate JBR


----------



## Mr Rossi (May 16, 2009)

Bigjimbo said:


> but I personally hate JBR


Can't think why anyone would want to live there, looks like a 70's Eastern Bloc housing scheme, the beach is rammed like Spanish package holiday resort and the traffic is horrendous.


----------



## Canuck_Sens (Nov 16, 2010)

Cme here and stay in a hotel and then pay a visit to those places with _your wife_.

You have a new born don't you ? See where your wife will adapt. In Marina there is a mall and Marina has a lot of people

If your wife cannot go with you because of the baby try to figure where she will adapt more easily, make friends and have access to facilities.


----------

