Buying an off-plan property allows buyers and investors to purchase it at the lowest price possible in the market in comparison to similar properties in the ready-to-move market, in addition to receiving an annual return on investment.
Although buying an off-plan property in Dubai can seem like a daunting process, if a buyer or investor conducts thorough due diligence, the benefits can far outweigh the risks.
Here are some of the things a buyer or an investor can look at before signing any contracts with the developer in order to safeguard one’s future investment.
- Location of the property and its surroundings
One of the key things which should be considered before sealing any real estate deal is the location of the property. Dubai Properties takes the location as well as other factors into consideration when planning and executing new residential properties in Dubai. With more than 16 years of residential real estate experience, Dubai Properties offers off-plan projects with accessibility to prime destinations and neighborhoods in Dubai, and provides its residents with the amenities that they need to lead a happy and comfortable life.
- Convenience and facilities available within the property
On-site amenities provide a convenience that saves residents both time and money, and value by making their lives easier. Check the plan for spacious car parking, any amenities in the community like schools, fitness center, swimming pools, children’s play area etc. Dubai Properties offers a broad selection of off-plan properties in the best areas to choose from. All off-plan properties are part of a well-stablished, gated communities for families across DUBAILAND, with all the essential amenities nearby.
- Property cost and payment plan
In all off-plan projects for sale, anything from 10-20% and upwards of 80% of the payment has to be made before the completion of the project. Most off-plan payment plans in Dubai include 60/40, 50/50 and 70/30 options, in which initially 60%, 50% and 70% of the payment is done, and when the project is completed, the remaining payment is done. This type of payment plan gives financial security to buyers and investors. Buyers and investors need to make additional payments in the form of fees such as Dubai Land Department (DLD) fee (4% of the total amount of the property), service charge and the recent value-added tax (VAT). These charges are applicable to both UAE and foreign nationals.
- Date of completion and handover
The property contract should include the anticipated completion date or the time limit to complete the construction and the handover date. The unit specifications must match with those agreed to in order to ensure that the unit meets the agreed standards and specifications on handover. It is important that buyers keep the escrow account number and agent information on hand to use in all transactions.
The master plan is a visual scale diagram that shows the measurements and features of the property being constructed, as well as the arrangement of the rooms in a particular real estate project. It is important that buyers examine the master plan to ensure that the property is developed in accordance with the location, land boundary, dimensions, and zoning regulations. Buyers should also monitor the progress of the construction of the project through updates sent by the developer and the progress reports issued by the Real Estate Regulatory Agency. The plans and specifications can be verified by an independent architect or building consultant, if needs be.
- Property registered with RERA
According to the Dubai law, the property developer as well as the land on which the property is being built must be registered with the Real Estate Regulatory Agency (RERA), which is a part of Dubai Land Resources Department. RERA is applicable to all builder and developers. It was put in place to bring more transparency and credibility to the entire purchase process. It helps redefine the developer-buyer relationship in the real estate sector and provides an effective legal framework for real estate transactions. Every homebuyer or a developer must know RERA guidelines and register their property with the agency to navigate the real estate landscape with ease.
Whether you’re seeking a home for your family, or looking to broaden your property portfolio, our Property Managers are dedicated to helping you through every step of your real estate journey. Start today with Dubai properties!