Comprehensive guide to buying off-plan property in Dubai
- How to Buy Off-Plan Property in Dubai
- Advantages of Buying Off-Plan Property in Dubai
- Risks of Buying Off-Plan Property in Dubai
- Top Areas with Off-Plan Property in Dubai
- FAQs
Investing in off-plan property has one obvious selling point: the price. But with lower prices often comes inflated risks. It’s all too easy and familiar for a buyer, especially an inexperienced one, to make mistakes. To ensure you make the most of your investments, we’ve compiled a list of things to consider when you plan to buy off-plan in Dubai.
What does off-plan property mean?
Before we discuss tips for buying off-plan property in Dubai, let’s see what it means. An off-plan property investment means buying a piece of real estate still in the planning stage or under construction.
How to Buy Off-Plan in Dubai
There are several things to consider when understanding the ‘buying off-plan property in Dubai process.’ There’s much to consider, from picking the right project to considering the location and future return on investment (ROI). To help you find the perfect investment opportunity, here are some things to consider when you plan to buy off-plan in Dubai.
Look for the Right Property
When you’re looking to understand how to buy off-plan property in Dubai, the first step is to find the right project to invest in. Explore various projects by leading developers.
There are many property developers in Dubai, and they build various projects in different parts of the emirate. A thorough research about these developers and the areas where their projects are located will surely come in handy. Various property-related exhibitions are held in Dubai, and a visit to such an event will connect you with the right developers and projects.
Research about the Developer
Before you do anything else, research your development history, and it’s best to consider the developer’s previous projects. When you plan to buy off-plan Dubai properties, it’s essential to look into the developer’s reputation amongst buyers, the track record of past project handovers and the quality of the projects. Several real estate developers in Dubai offer a variety of off-plan projects.
Look for a Reliable Realtor
Selecting a trusted and experienced real estate agent or agency is crucial if you want to buy an off-plan apartment in Dubai or a villa. These professionals often have long-standing relationships with well-known property developers.
A realtor will advocate on your behalf and ensure that all contractual terms and the handover process run smoothly. They take the time to understand your preferences and budget to handpick properties that align with your needs.
Working with a certified off-plan property agent registered with the Dubai Land Department and RERA (Real Estate Regulatory Agency) Dubai is important. A reputable agent will also comprehensively compare various off-plan properties in Dubai, helping you make an informed investment decision. You can also benefit from Bayut’s TruBroker™ and connect with agents who are genuinely committed to your needs.
Assess Your Financial Situation
When you buy an off-plan property in Dubai, somewhere between 20% and 80% of the total amount is paid upfront, and then the final amount is closed once the project is finished. The most common payment plan is an even 50/50 split, so you must be pretty secure about your financial situation at the estimated time of the project’s completion. Assess all risks before you take the plunge.
Book your Dream Home
After your due diligence and assessing your financial health, it’s time to book your property off-plan. It’s one of the most crucial steps in the buying off-plan property in Dubai process. You can visit the realtor and get the deal finalised through them. Another option is to visit the developer’s sales office, where you can handpick and reserve the specific unit.
To secure your chosen unit and ensure it’s no longer available to others, you’ll typically need to place an initial deposit, which usually falls within 5% to 10% of the total property price (may vary depending on the project).
SIGN THE SPA TO BUY OFF-PLAN IN DUBAI
The next step is to sign the booking form and the Sales Purchase Agreement (SPA) for the unit selected. It’s worth mentioning that a dedicated real estate agent can often negotiate favourable terms on your behalf to get a good deal. Once the agreement is reached, you must pay the instalments to get the property upon completion.
Advantages of Buying Off-Plan Property in Dubai
Now that we’ve catered to the frequently asked query “how to buy off-plan property in Dubai”, it’s time to look at the advantages of investing in these properties.
Potential for Capital Growth
Whether you’re looking to purchase an apartment or have plans to buy an off-plan villa in Dubai, another aspect to consider is the project’s potential for capital growth. This point is important to consider if you intend to sell the property for a profit in the future. Check the project’s location and do your homework about the property’s return on investment and price appreciation.
Ensure you have all the information about the quality of the project as well. Sure, the brochure and the website look stunning, but can you guarantee the finished product will look great?
This is where researching the quality and history of your developer comes into play for price appreciation in the future. Ensure you’re investing your money with developers who have a good reputation.
Once you’ve combed through the above issues, you should be able to accurately tell if you’re in a position to buy property off-plan in Dubai.
Option to Sell Before Project Completion
The Dubai off-plan property’s contract can often be sold before the project is completed. If the market is performing well and the project is popular, this will lead to quite a profit for the seller.
There are several aspects to consider when selling off-plan property in Dubai. The developer might have terms and conditions prohibiting you from selling the property to another before completion. Do check with the realtor and the developer for more details.
It Comes with Buyer Protection
The Real Estate Regulatory Agency (RERA) also established regulations that have added more protection for buyers against many illicit activities and sudden plan changes (like long delays or cancellations).
Risks to Consider When You Plan to Buy Off-Plan in Dubai
With all the benefits that off-plan properties offer, some downsides are worth considering. Let’s look at some risks of buying off-plan property in Dubai.
The Project Could be Delayed
The most commonly cited problem by those buying off-plan properties in Dubai is that the project may be delayed. In many cases, there have been delays in handovers for almost a year or, in some cases, more than a year after the quoted handover date. Some projects have even been cancelled entirely! So, hope for the best, but don’t be surprised if your project is delayed somewhat.
Change in Market Conditions
Another disadvantage of getting an off-plan property for sale in Dubai is the sudden change in market conditions. During the COVID-19 pandemic, the property market witnessed a downtrend in property prices, leading to a decline in real estate value. In most cases, the market tends to rise after the conditions improve, but loss of value is a risk you must consider before investing in an off-plan project.
A Portion of the Sale Price must be Paid before Selling
While buyers can sell their off-plan property, there might be limitations if you consider selling it before it’s complete. Many developers in Dubai require buyers to pay off a specific portion of their off-plan property purchase before they allow resale. So, it’s a wise move to get in touch with the developer and inquire about the minimum amount you must pay off before selling your off-plan unit.
Prefer to pay the predefined amount after the project is delivered? Consider projects offering post-handover payment plans.
Takes Time to Give Good Returns
An off-plan property may take a long time before it can give a good return on your investment. If you’re looking for short-term profits, this might not be the right investment.
Top Areas to Buy Off Plan Property in Dubai
Several areas offer affordable and luxury off-plan projects in Dubai. Use the Dubai Sales Transactions page to assess trends in your area of interest.
JVC
- The Palatium Residences by Ahmadyar Developments
- Alta by Meteora
- Sky Vista by Peace Home Developments
- One Park Central by Iman Developers
- Dusk by Binghatti
AL FURJAN
- Englave by Aqsa
- Zazen Ivy
ARJAN
- Vincitore Dolce Vita by Vincitore Realty
- Vincitore Volare by Vincitore Realty
- Opalz by Danube Properties
- Arbor View by Ellington Properties
Dubai Hills Estate
- Binghatti Hills by Binghatti
- Palace Residences by Emaar Properties
- Club Palaces by Emaar Properties
- Parkland by Emaar Properties
- Address Residences Dubai Hills Estate by Emaar Properties
Dubai Creek Harbour
- Valo by Emaar Properties
- Mangrove by Emaar Properties
- Arlo by Emaar Properties
- Oria by Emaar Properties
- Palace Residences Creek Blue by Emaar Properties
Off-Plan Projects by Emaar
Emaar is a premier real estate developer with several projects under its belt. Off-plan projects by Emaar in Dubai that you must explore include:
PALMIERA AT THE OASIS
Palmiera at the Oasis is an upcoming development offering 4 to 5-bed family homes. It will be located in The Oasis.
THE HEIGHTS COUNTRY CLUB
Potential investors thinking of buying off-plan in Dubai may also consider The Heights Country Club. The 81 million sq. ft. development will feature 3 to 4-bed townhouses and 4-bed villas.
AVENA AT THE VALLEY PHASE 2
Avena at The Valley will be perfect for those searching for off-plan areas with modern villas.
VELORA AT THE VALLEY PHASE 2
Our guide to buying off-plan property in Dubai also includes the second phase of Velora at The Valley Phase 2. It will feature 3 to 4-bed townhouses.
FAQs about Buying Off-Plan Property in Dubai
What does it mean to buy off-plan property in Dubai?
Buying off-plan property in Dubai means purchasing a property that is still under construction or has not yet been built. These properties are available at a discount and offer a good potential for a price hike.
Can non-residents buy off-plan properties in Dubai?
Yes, non-residents can buy off-plan in Dubai. There are no restrictions on property ownership for expatriates in freehold areas in Dubai. However, ownership regulations may vary depending on the location and type of property in Dubai.
What documents are required to buy off-plan property in Dubai?
Here’s a general list of documents you might be required to submit if you have plans to buy off-plan property in Dubai. Please keep in mind that this list is not exhaustive, and you may be required to submit other documents for the actual purchase.
- Emirates ID (Copy)
- Passport (Copy)
- Sales and Purchase Agreement (SPA)
- Reservation form
- Mortgage contract (If applicable)
This concludes our guide on how to buy off-plan in Dubai. There could not be a more suitable time to invest in one of the many property projects currently on sale in Dubai. These properties tend to increase their value in the long term and offer fruitful rental yields.
Foreigners can also invest in usufruct properties in the UAE. Discover our comprehensive guide to usufruct agreements and learn everything you need to know about this unique investment opportunity.
Those searching for off-plan developments to invest in Dubai should consider Binghatti off-plan projects. These developments feature awe-inspiring accommodations with premium facilities.
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Exactly right, the most commonly cited problem by those buying off-plan properties is that the project may be delayed.