The United Arab Emirates is a dreamland for property sales and acquisition. Property in the UAE guarantees financial security and long-term return on investment. However, you should know the fundamentals of property sales and acquisition to do that.
During the first half of 2022, the real estate market generated transactions of DH115 Billion. The upward trajectory will replicate in the last quarter and the following year. With over 100 years of experience in this field, Land Sterling can help you get maximum profits with minimal risk factors in real estate investments.
In this blog, we hope to teach you all the basics of property sales and acquisition.
What is a Property Sale?
A property sale is the transfer of ownership of any residential or commercial property in exchange for a fixed price. The buyer can pay the price at once or in multiple transactions. For disclosure, a legal contract is established between the buyer and seller.
For a novice, it is impossible to understand the technicalities of the property sale. It is helpful to hire specialized real estate agents to get good results.
Land Sterling can help your strike the right deal. We can provide you with
- Buyer exposure via our contacts
- Proper listing of your property
- Correct Evaluation as per current market rates and future forecast
- Legal documentation
- Negotiation with potential buyers
- Speed up the whole process
How to decide on a Property Sale?
In the property market, timing is everything. When selling, the right timing can distinguish between a considerable profit and a hefty loss.
Before selling, you should base your decision on these factors.
Market’s Pulse
You should know about current and future market trends. They play a crucial role in determining the right time. Also, think from a buyer’s perspective, and find out how your property can prove valuable to others.
Season to Sell
The general rule for the property says spring is the best season for selling. However, UAE is different. The weather stays sunny all year around here.
Historically, the cooler months generate maximum sales. Always stay active during this period.
Property Type
The property type also helps in determining the right time. It would help if you looked at which types of properties are currently in demand.
Currently, villa types have seen a sharp increase while apartments lag in the UAE market.
Location and Estimation
You can change the interior, exterior, and layout of your property. But you cannot change its location. As a seller, you should know the current and future worth of the surroundings.
If the trajectory is upwards, keep it with you. But if it’s going down, it is time to evacuate.
What are the types of a property sale?
There are three primary ways to sell a property.
1. Private Treaty
You (seller) and your agent decide the selling price of the land. After that, the agent finds a potential customer. After multiple negotiations, a sales agreement is established.
2. Auction
You (seller) can put your property on auction to get the best price. The buyers engage in a face to face competition to get the deal done.
3. Expression of Interest
The buyer fills a written tender by a specific date and submits it to the seller. The seller gets the best offers and proceeds towards finalization.
What is Property Acquisition?
It refers to gaining the ownership or rights of any property. The rules of acquisition depend upon the laws of the land; however, fundamentals stay the same.
A timely investment in a property in UAE can change your fortune. But for that, you should know the rules of this tricky game.
Land Sterling assists you in making the right calls. We provide
- Best buying options
- Up-to-date Property Evaluation
- Information about surroundings
- Foundation for unemotional negotiation
- Assistance in legal documentation
- Details of required repairs
How to decide on a Property Acquisition?
There is no pet rule to determine the best time for property acquisition in UAE. The buying should be a cumulative result of these factors.
Property Location
The property location is the most critical factor in determining profitability. Any place near markets, scenic views, transport hubs, and warehouses is generally a good investment.
Investment Purpose and Horizon
Your plan goes a long way in making the right property decisions. Property acquisition has four purposes:
- Self-Use
- Lease
- Short term sell
- Long Term Sell
- The expenditure should be as per your horizon.
Expected Cash Flow/Profit opportunities
Cash flow relates to the money left after meeting expenses. The cash flow should be positive to get a good return on investment.
Your credit scores
The credit score impacts your qualification for a mortgage and the terms you get from the lender. So, always keep it in check. For UAE, anything above 710 is a good credit score.
What are property types for acquisition? (In UAE)
In UAE, there are four property types that you can buy. The property can be purchased on lease or own as per your choice. Each emirate has its own set of rules governing the transfer of property.
The types of properties are:
Freehold/Ownership
In freehold, the owner can utilize land permanently. There isn’t any restriction on the time to evacuate the place.
Musataha
In musataha, the buyer can own a place for 50 years. After that, the agreement must be re-established between both parties for a similar period. This method is suited to expats.
Usufruct
In usufrust, the buyer can stay in for 99 years. However, during this period, he isn’t allowed to change the layout/shape of the residence drastically.
CONCLUSION
Property sale and acquisition is a path to financial stability. If you rightly make these decisions, you can enjoy the true beauty of UAE Life. However, you need expert advice to do so.
Land Sterling has accomplished the valuation of properties worth 200 billion dirhams. With our experience surveying iconic projects like Burj Khalifa and First Abu Dhabi Bank, we can help you make suitable investments.
Frequently Asked Questions
What is a real estate acquisition Analyst?
A real estate acquisition analyst provides the feasibility and implications of any real estate acquisition. Based on this, you can make your decision.
What are the categories of real estate?
Real estate has six categories.
I. Residential
II. Office
III. Industrial
IV. Retail
V. Agriculture
VI. Hospitality
What is an example of an acquisition cost?
It includes all expenses in getting the ownership—the cost of surveying, purchasing, closing fees, and paying liens.
