With so many people dreaming of owning a home in Dubai, it is no wonder that the prices have been getting higher and higher. However, for those who cannot afford them or would rather not live out their lives, as renters with little stakeholder equity – there is an option. Off-plan property developments offer great opportunities to get on your feet without breaking bank accounts.
Off-plan market in Dubai has seen significant expansion. According to DLD, 17,081 transactions for off-plan properties were completed in Dubai in 2021. The total value of these deals is AED 30.9 Billion.
For the uninitiated, off-plan property is one that is still in the planning stages. Construction on the aforementioned property may or may not have begun. Because of the time, it will take the property to be completed and handed over; such properties are usually less expensive. In order to attract more purchasers, developers frequently offer flexible payment options such as 10/90 or 5/95.
Tips for a Perfect and Hassle-Free Off-Plan Property Purchase in Dubai
While Off-Plan Properties Dubai have made it easier for many people to buy property in Dubai, there are some factors to consider when doing so. You may find yourself in danger if you are not courteous and cautious enough. Follow these helpful recommendations to ensure that nothing like this occurs to you:
1. Be Aware Of the Costs
Many customers, especially first-time purchasers, are primarily concerned with the asking price and payment plan. They are impressed by it and close the transaction. You must avoid this blunder at all costs. Before Buy Off-Plan Property in Dubai, make sure you know the price per square foot. This will give you a better idea of whether the house you are considering purchasing is indeed inexpensive.
If you do not pay attention to this, you can find yourself paying the same amount for an off-the-plan home as a ready-to-move-in home. So, use discretion and know precisely what you are paying for. Know whether you are paying for an internal area or the entire area, for example. If the home has a balcony or terrace, make sure, its sq. ft. price is lower than the internal area’s sq. ft. price.
2. Examine the Project’s Legitimacy
This is a crucial point. Always double-check and double-verify the project’s validity before submitting it. Although only registered properties can be marketed, the new property marketing regulation requires that the same be verified by visiting the RERA online. Besides that, do not deposit money into any account other than the property’s escrow account. This assures that your payment is secure, even if the project is canceled.
3. Get to Know the Area
It is all about the location. It will have an impact on your lifestyle (if you plan to live in the house after it is finished) as well as your financial rewards (if you intend to sell or rent it out). In any case, you should do your homework and learn everything there is to know about the location. Do not just take the developer’s word for it. Make a point of visiting and inspecting it in person. If it is a waterfront property with plenty of views of the lake or the sea, ask the developer about any upcoming developments in the area so that those ‘promised vistas’ are not obstructed or impaired later.
Also, purchase a home in a well-established neighborhood. Purchasing in undeveloped areas has a reduced price tag. However, will take a long time to achieve a profit. Take into account any prospective projects around the property, such as parks, educational institutes, and other developments, among other things. More information on the finest areas for off-plan residences may be found here.
4. Check Out the Developer’s Track Record
This is a fact that very few people are aware of, yet it is very important. Learn about their previous projects and how successfully completed them. Is it true that the handover was completed on time? Was the property equipped with all of the amenities and features that were advertised? What is the market value of those projects currently? Answering these questions will assist you in making an informed decision.
5. Engage the Services of a Real Estate Agent
This may come as a surprise to you because many people advise purchasing an off-plan property directly from the developer. Hiring a real estate agent or using a property site, on the other hand, maybe useful to you.
To begin with, approaching a developer directly limits your options. A developer is unlikely to inform you of other promising projects that might be of interest to you, but an agent will. Agents with a lot of experience also have a lot of industry information. They can foresee price changes and future trends. As a result, they can better help you when it comes to choosing an off-plan property.
When it comes to selling or renting out your house after the handover, you will need the services of an agent. As a result, approaching them ahead of time will not hurt. However, only work with experienced and competent realtors who are familiar with off-the-plan properties.
6. Examine the Project
You, like the developer, must learn every aspect of the residential project you have chosen for your off-the-plan home. If you are thinking about buying an apartment, opt for a cluster of buildings rather than a single structure. This advice is because the former has a more advanced collection of amenities that appeal to more purchasers. This raises your chances of a significant return on investment.
When it comes to amenities, you should be aware of what your home offers ahead of time. Keep in mind that not every Dubai residential development has a gym, a swimming pool, or play areas. Because the presence of these amenities has a significant impact on the ROI, you must know which ones are included.
7. Get to Know the Property
Examine the property’s livability, salability, and ratability. If it comes with a balcony, be sure it is big enough. Take into account the layout as well. Determine the number of bedrooms and bathrooms on the property. Investing in a project with a display property is a superior option. This will help you grasp the finishing and other aspects better. However, keep in mind that you will not receive the same unit as the model home. However, being aware of all of this ahead of time can be advantageous and spare you from unpleasant surprises later on.
Get the authorized site plan from DLD for a better understanding. You will learn about the property’s exact perspective, direction, measurement, position, and total size breakdown in this manner. You have the right to reject to accept the property handover if the layout or dimensions do not match the anticipated layout or dimensions.
8. In-Depth Discussion of The Payment Plan
Discuss the payment plan in detail before finalizing your Dubai off-plan property. Learn about the payment plans and what happens if you miss a payment due to unforeseen circumstances. Inquire about the exit strategy as well.
Always remember that the more comprehensive your post-handover plan is the better. Simply put, a greater post-handover payment plan indicates a more secure investment. In addition, investing in a project with a progress-based plan is preferable. In such a scheme, for example, installments are paid based on construction progress.
9. Read the Contract Completely
Finally, thoroughly read the contract. If you are not sure what a term means, ask for help. Check for any hidden restrictions or clauses that might limit your capacity to sell the product before it has finished. Also, be aware of any service fees or other project-related costs that are specified in the contract.
Overall, purchasing an off-plan property can be advantageous to you. It could serve as a stepping-stone into the burgeoning Dubai real estate market. Therefore, do your homework and follow all of the aforementioned guidelines to secure a safe investment.