Updated: Aug 11
If you have started looking to buy a property in Dubai, either as investment or to live yourself then you would have come across plenty of off-plan properties. From luxurious villas, to charming townhouses and eye catching apartments, Dubai off plan market is rich and with a lot to offer. As with any investment, it is necessary to understand the benefits and risks of purchasing properties off plan.
An ‘Off-plan’ property is a type of property that construction is either to start or is under construction, which the developer promises to complete and deliver by a specific date.
WHAT SHOULD I CONSIDER BEFORE BUYING A PROPERTY OFF-PLAN?
It is your opportunity to buy the best unit(s) at the lowest possible price for the project, and in turn maximizing the returns on your investment (ROI).
It provides an excellent chance to re-selling the property, even before the project is completed, at a considerable profit on the assumption that the project proves popular and the market is performing well.
Better payment plans are available for off-plan properties, with usually lower upfront costs.
It allows you to manage your capital paying in installments.
Making the decision on what type of property to buy then comes down to budget and needs. A great step in this process is to work with an experienced agency who will be able to show you the right opportunities as they arise, as they will be registered with off-plan projects and developers in the market. This is the case of Ava Properties Real Estate Brokerage, we are registered with the most reputable developers offering you not only a large number of options but we will advise you on what the best option for you would be.
WHAT IS THE PROCESS TO BUYING OFF-PLAN PROPERTIES?
Select type of investment. When it comes to choosing an off-plan property, whether you are an investor or home buyer, it is very important to compare your budget and needs with market availability in various projects.This is where having a trusted and experienced Agent plays a big part in increasing the chances of gaining the maximum return on your investment.
Viewing. Visit the developer sales boutique to get a complete understanding of the project advantages, as well as every component of your future property recurring to demonstration tools such as Project Miniature Model, Brochures or Virtual Tour. Some developers will have a Show Property available for you to visit as well. Your agent will accompany you and arrange an appointment but prior to this will also provide you with as much information as possible on the project for you to have a better understanding of what you will be viewing.
Booking. Once you have chosen the unit type, you will need to pay booking fees to make sure it will be removed from the availability list for others. Most developers ask for a 5-10% booking fee (sometimes 2% if an offer is on), along with signing the booking form for the selected unit.
Payment of first installment and DLD Fees – After you complete the booking process, you will be requested to complete your first installment or also referred to as “Down payment”or deposit along with paying the Government Registration Fees: usually 4%, of the value of the property but some developers offer DLD waivers or some other form of discount.
Signing the SPA. Whether you are residing inside or outside the country, the developer will send you the “Sales and Purchase Agreement” (SPA) to obtain your signature before you will receive the dually signed copy after getting it signed by the authorized signatory from developer’s end.
Registration in Oqood. This step is extremely important to guarantee your purchase is already registered with the governmental authorities. After completing this step you should receive your initial contract of sale issued via the Dubai Land Department (DLD).
Settle Due Installments. Pursuant to the agreed payment plan, you will be requested to settle a particular percentage of the purchase value (based on the payment plan) before you become eligible for handing over your property.
Completion Date. As per the clause stated in the SPA regarding the project completion date, the developer will be obligated to deliver the same and complete the construction, then send the completion notice to you.
Inspection & Handover – Once you settle the required payment for handover, you will be invited to inspect your apartment on a certain selected date in coordination with the handover team representing the developer. Here; if you can appoint a Professional Snagging team to complete this step,it will give you a massive difference with your unit condition and quality for the future usage.
Now it is time to move into your property or put it for rent! Nothing will be left for you to do here if you have completed all previous steps in a timely and accurate way.
If you need to rent out your apartment or sell it, we can help you with this also. Contact Us.