A magnet for investors, Dubai real estate is ranked among the most profitable sectors in the region. The rising number of developments launched in the emirate testifies this statement.
Investors can either opt for ready-to-move-in residences or buy off-plan property in Dubai in a bid to diversify their real estate investment portfolio. The former, as the name suggests, are properties in which the buyer can shift instantly after purchasing it. An off-plan property, on the other hand, is still under construction. This is why they are inexpensive as compared to ready properties and more suitable for investors.
If you are also planning to enter the Dubai real estate market by investing in off-plan property, due diligence is extremely important. Whether the investment amount is big or small, it is pertinent to pay attention to every single detail so as to make an informed decision.
Important Factors to Consider When Buying Off-Plan Property in Dubai
- Hire the Services of a professional and experienced agent who specialise in dealing with off-plan properties. Not only will they help you in selecting the property, but they will also assist you with the paperwork and other complex procedures that are involved in buying a real estate. Also, they must be registered with RERA.
- Pay attention to the location of the property. Get information on the new projects that are expected to be launched in nearby areas. This can have a major impact on ROI.
- Take into account all the facilities and conveniences associated with the project.
- Keep the credibility of the developer into consideration. Always buy an off-plan property that is developed by a renowned development company. Check out their other completed projects before taking the final call.
- Analyse the total cost of the property and know details about the payment plan. Also, evaluate the cost based on the prevalent market conditions.
- Ask the developer for the date of completion and handover time. Bear in mind that there can be delays during the construction; therefore, the project may not be handed over on the initially announced date.
Directly from the Developer
If you are planning to buy an off-plan property directly from the development company, here are some of the factors you must consider:
- The project must be registered with RERA.
- The Escrow account of the project must also be registered with RERA.
- The property must be registered with the DLD through the Oqood registration.
- Ensure that the developer has signed and sealed the sale-purchase agreement.
If you aim to buy an off-plan property from the secondary market, follow these guidelines:
- Never buy a property from the secondary market without hiring the services of a broker or agent. Make sure to have checked and verified their broker card before hiring them. For the verification purposes, you can check the official RERA portal.
- The unit must be registered with DLD. You can also ask the seller to show the registration copy.
- Contact the developer of the property for a No Objection Certificate.
- If you are satisfied with the details and have made the initial payment after signing the agreement, ask the seller to transfer the ownership of the said property on your name. It should be done in the DLD trustee office.
Valuable Tips when Buying an Off-Plan Property
- Always conduct a thorough market analysis. No matter how lucrative the offer seems, if the market situation isn’t favourable, don’t sign the agreement.
- Once you have signed the agreement, keep a tab on the progress of the project.
- Have your finances ready to pay the registration amount in full. This amounts to 4% of the property price.
- Don’t deal with unregistered developers or agents. Also, don’t invest in projects that aren’t registered.
- Use the project’s registered Escrow account for transactions.
- Select a payment plan tactfully. Keep your income, expenses and future monetary obligations, if any, into consideration when selecting the payment plan.
- Hire the services of a professional when signing the Sale Purchase Agreement. Get it reviewed from then and then sign it.
All in all, off-plan properties have huge potential but a minor mistake or negligence on your part can land you in hot waters. So, it’s a must to hire professionals to make an informed decision. You can trust Zoom Property in this regard. Contact us even if you are wondering how to sell off-plan property in Dubai. Our team of highly motivated and experienced professionals will guide you through the entire process.