How to buy Off-Plan Property in Dubai

We tell you how to invest in the Dubai real estate market with a high capital appreciation in buying off-plan. It is an easy process and there is no need to travel to Dubai. Here are some tips, how to choose the right property for the investment in the Dubai real estate market. Including a step by step guide about the process of buying off-plan.

Dubai’s real estate keeps on growing, a lot of investors are buying properties. Due to high rental yield, and relatively cheaper and tax-free properties, it is best to buy an apartment or a villa in Dubai now. There are a lot of opportunities for you to get into this booming market. One is through buying off-plan properties.

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What is an off-plan property?‍

Before we discuss how to buy off-plan properties in Dubai, let’s first talk about what off-plan property is.
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Off-plan property refers to properties that are yet constructed but they are already available to purchase. These properties are usually built in high-demand areas where buyers can secure a future property at a discounted price. ‍

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Pros and Cons of Buying Off-Plan Properties.‍

• You can save money: Maybe the biggest advantage of buying an off-plan property is that you can purchase the property at its earliest and lowest possible price. The prices of these properties are usually set 3 to 4 years  before completion. You’ll have the highest capital appreciation when you buy early.

• You can sell for a higher price: Once the property is done or before its completion, often investors sell their contracts with the current market value. Assuming that the market went up, you may sell it with considerable profit.

• You can live in a brand-new home: Buying a property before construction means you can move in once it's done - super brand new. You will be the first to use it and all its amenities.

• You can pay a lower upfront cost: There are a lot of payment plans when purchasing an off-plan property with 0% interest, but one thing that can really entice investors is its lower upfront cost. This varies from developer to developer but there are some that only require a 10% deposit and some of the properties even have a post-handover payment plan.

There are also cons when purchasing an off-plan property:

• Delayed completion time: One risk of purchasing a nonconstructed property is that there might be a delay in its completion time due to many factors. This is definitely not for you if you’re looking for a place to move into in a specific year.  But we read here to help you find the developers with a proven track record in delivering on time or even early.

• Change in the market condition: There are a lot of things that can happen to the market which will make its value not increase or decrease. This may happen to every investment but it’s worse with unfinished properties. Therefor it is advised to choose your investment wisely. There is a golden rule in real estate investment and it says location, location, location.

Tips for purchasing an off-plan property in Dubai‍

Here are some tips to have a successful transaction in buying an off-plan property in Dubai:‍

•Consult with an expert: Before investing in something, it may be in real estate or something else, always consult an expert. This can help you with your finances or the legalities of your investment. In terms of investing in real estate, consult a real estate agent that is certified by the UAE regulators. This will allow you to have the best-informed decision in purchasing a property here in Dubai.

For more information, please contact us here.‍

• Choose your developer properly: With the help of your real estate agent, carefully choose your developer. You may check their prior projects and how they operate. Research their projects like their promised timeline and the actual deliverables. How much is the current value of their projects? The credibility of your developer is crucial in getting a good ROI. This will also lessen the probability of the cons mentioned above.

• Review the project properly: It is important that you meticulously review the project and the contract. You should check everything about the project - the location, the area’s market value, the amenities included, the estimated ROI, etc.

• Discuss payment plan and prepare your finances, complete the paperwork: One good thing about buying an off-plan property is that they offer various payment plans. So, make sure that you discuss this thoroughly with your developer and the real estate agent. This way, you’ll understand your payment plan and you’re aware of the consequences of not paying on time. You also need to talk about an exit plan just in case. For a smoother transaction, complete your paperwork. Read and review all of them, and make sure that you don’t miss a thing.  An agent can significantly help you with this.

• Who can purchase an off-plan property in Dubai and How: In accordance with Article 4 of the Dubai Real Property Registration Law, an expatriate may buy real estate property. Basically, you can purchase a property in Dubai even if you’re a non-resident. And with off-plan properties you can literally do it from your sofa at home. There is no need to come to Dubai for the purchase, everything is done online.

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Here are important tips for purchasing an off-plan property in Dubai

• Approach a registered real estate broker in Dubai: The real estate brokers in Dubai are required to register themselves with the Real Estate Regulatory Agency of Dubai (the ‘RERA’), which is a regulatory body of the Dubai Land Department (the ‘DLD’). Explain what property you are looking for and also your budget. Your real estate agent will then help you look for the best property that is suitable for your requirements.

• Verify the developer (seller): After you identify the property you want to invest in, verify if the developer has registered that project with the DLD and if they set up an escrow account.

• Pay the downpayment or initial deposit: After, you may ask the developer or broker to provisionally register the property in your name by paying the applicable fee to DLD. This is called Oqood registration.

• Sign the Sale Purchase Agreement (SPA): Once you verified everything, you may sign the SPA with the developer. The property will be registered in your name by paying the applicable fee to DLD. This is called Oqood registration.

• Hand over the property: Once the construction is done and you have paid your installments, the developer can then hand over the property and you will receive the title deed! Don't forget to use the service of an experienced snagging team at handover. We can help you with our network here too.

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Purchasing property in Dubai as a foreigner is easy and straightforward.

But understandably, there will be some limitations for most expatriates.

This is why we are here to assist you and make sure you get the best investment here in Dubai.

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Contact us to get started.

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