Buying Off-Plan Property in Dubai – Important Factors to Consider
Off-plan properties provide investors with a remarkable opportunity to climb up the property ladder in Dubai. By purchasing such a property, they can create their profile in the Dubai real estate market without burning a hole in their pockets. For the uninitiated, off-plan property is a home, apartment or villa that hasn’t been constructed yet or is still under development. Therefore, it doesn’t require the interested buyer to make a huge deposit as compared to a fully constructed property.
Those who do not want immediate possession of the home/apartment/villa, going for off-plan property make an ideal choice for them. The rates are competitive in comparison to the market value and one can also find opportunities to re-sell it on profit. Furthermore, many builders offer easy payment plans that require the buyer to pay in installments instead of a lump sum amount. The market for such properties in Dubai is maturing with the launch of many residential projects.
If you want to buy off plan property in Dubai,there are some factors that you need to consider. These include:
Registration with RERA
This is one of the most important things to know before buying an off plan property in Dubai. Make sure it is registered with RERA. This reduces the risk of scams and fraud to the minimum. This practice should be followed even if you want to buy a fully-constructed, ready to move in property for sale.
The Dubai law requires that other than the property itself, the land on which the house/villa/apartment is constructed must also be registered with RERA. The same is the case with the project developer. Their registration with RERA is also mandatory.
If the said property, developer or the land is not registered with RERA, it is in your best interest to not buy it. It can save you from landing in a situation, full of hassles and troubles, in the long run.
Know Each & Every Detail
Don’t rush into things just because you are getting a good deal. Take some time to know every minute detail about the property. For example, details such as what percent work is completed and how long it will take to the property to be fully constructed hold vital importance. Similarly, ask the developer about the handover date.
Other than that, make sure you are aware of the Escrow account number of the property. Such an account is used when transactions involve a large sum of money. Your money will be deposited in this account during the transaction period when they purchase an off-plan property. So, it is important to know details about this account.
The Selection of the Neighborhood
Other than the property, it is also important to know details about the neighborhood it is located in. It should be well-connected to other parts of the city and have basic amenities located nearby. Moreover, if you plan to move in with your family once the construction is complete, ensure the area is family-friendly. The selection of the area is also important as it impacts the price of the property as well.
DLD and RERA Approvals
When buying a property in Dubai, registration with RERA is not the only thing that you should check. It is mandatory for the developer to get approvals from RERA and DLD before selling a property. So, make sure they have obtained the necessary approvals. Simply ask the selling party to show the relevant documents stamped by the authorities. If they fail to provide those documents, do not buy the property.
If you are planning to buy an off plan property for the purpose of selling it, ensure that you are aware of the selling requirements and conditions. These vary from developer to developer. It is important to know these conditions and requirements beforehand so that you will not have to face any restrictions or hassles while selling the property.
Return on Investment
This is an important factor that you must not neglect. Even if you do not intend to resell the property, keep its ROI into consideration. Carefully inspect the material the developer will provide you with such as images and videos of the project, 3D models, mock-up designs, etc. It will give you an idea about how the project will look once it is completed. These things will help you to determine the return on investment.
Buying an off plan property can prove to be a profitable venture provided you have taken an informed decision keeping into consideration all the factors discussed above. Make a point to buy it only from reliable and renowned project builders to reduce the chances of scams and frauds.
Dubai Residential Market Expected to See an Increase in Prices