I am considering buying an apartment in Dubai to live in. I’ve been renting for three years and plan on staying for at least another five. I’m not in a huge rush so want to understand if I should wait or act sooner? If I can wait and save more money, then perhaps I can buy something at a better price in a few months and get more bang for my buck? I’ve heard you mention that some asking prices out there seem to be quite “silly,” and I am wondering how much room for negotiation there actually is, 10, maybe 20 per cent? Basically, I don’t want to get ripped off. LC, Dubai
The million dollar question - should I buy now or wait and see where the market is going? You are right that I have been forecasting for some time that there has to be a correction in sales prices for the property market. This is in stark contrast to others who say no correction will happen, so I guess it is only a matter of opinion.
As an estate agent, I am at the “front line” so to speak and I see what goes on in the property market in real time, not just what was reported in the previous quarter, which can be months out of date. There would appear to be two types of sellers at the moment. The ones who want to sell and those who need to sell.
The sellers who just want to sell are often going to wait until their properties sell at whichever time frame will get them the price, they have decided their property is worth, with no regard whatsoever to what estate agents are advising them the price should be. These sellers are just crowding out the market because they will only go ahead and accept an offer if it is on their terms and often they are asking well over market price.
The sellers that need to sell however are less in numbers but they do exist and it is these types of sellers that the current buyers are seeking out. The seller that needs to sell is more likely to cut a deal with a buyer and listen to advice from the agent.
Going back to price corrections, these will happen but only with the need-to-sell vendors and I can confirm we are experiencing this already as some sellers have reduced their asking prices to attract buyers.
With the summer and Ramadan upon us, these types of sellers will look to secure a sale so buyers will do well to seek them out.
Dubai has so much to look forward to and my prediction is that prices will, in the long term, continue their upwards trajectory. Last year, measures to cool the market were introduced such as doubling of the transfer fees and capping mortgages but these will not be the only changes to happen as I expect the Government to introduce further methods soon.
My advice to you would be to seek out the motivated sellers, align yourself with a reputable and qualified agent/agency and work with them to secure your home. Remember, as a buyer, you do not have to register with 100s of agents, choose one you are happy with and employ them to find your property.
You mentioned that landlords must give one years' notice by notary public or registered letter when evicting a tenant. There seems to be some confusion since Rera say notary public and send by registered mail; can you clarify please? Also, if the landlord mentioned in the eviction notice that she wants to sell the villa and the villa is not sold when the year expires; is this eviction then void? And can the tenant stay in the villa on the same conditions if the landlord hasn't notified them at least three months in advance about increasing the rent? FD, Dubai
Under Article 25, Clause 2 of law 33 of 2008, it clearly states that the 12 months’ notice of eviction be sent through notary public or by registered mail. I have however always advocated that this important document should be delivered in a proper manner and sending it via registered mail would ensure delivery.
If the property is not sold within the 12-month period then the reason for eviction did not actually happen and the notice becomes null and void. At that point you should be able to remain in the property. The rental price will be determined by the Rera rental calculator at the time. I would not be too concerned at this point if the landlord has not given you the 90-day notice because in her eyes you are in a notice period to leave anyway so best to try to work things out amicably with her at this time.
Mario Volpi is the managing director of Prestige Real Estate in Dubai (prestigedubai.com). He has 30 years of property industry experience in the emirate and London. Send any questions to mario@prestigedubai.com
The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice
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