Making a decision to invest in the Dubai real estate sector is certainly no small feat. The market, as evident from the Q1, 2021 stats, is on the road to recovery after it was hit by the ongoing pandemic.
Currently, the emirate’s property market is teeming with opportunities for investors. With favourable economic conditions, high profitability and investor-friendly regulations, it definitely is a wise decision to choose Dubai if you intend to venture into the real estate market.
Although it is considered a safe market for investors, it is still important to take into account various factors before putting your hard-earned money in it. Among these factors, the most important one is the selection of the property developer. Neglecting this aspect can land you in troubled waters in the long run as a property developed by inexperienced, non-professional development firms can take years to complete. Furthermore, there can be delays that can block your investment for an extended period. And, in the worst-case scenario, the project can get canceled as well.
The only way to avoid facing such troubles is to choose the best property developer for your investment in Dubai. And to help you with this, here are some essential things you must consider when selecting the property developer:
First of all, you shouldn’t make any compromise when it comes to the reputation of the development firm. Investing in the property market, anywhere in the world, is a crucial matter. It should be devoid of risks. When you trust a non-professional developer just because the property rates are low, you are inviting a lot of trouble.
Therefore, you should buy property from a development firm that has a carved reputation for developing quality projects. After all, there’s a huge sum of money involved. A wrong move here can result in massive losses.
You can find various online platforms like Quora or Reddit where you can know about the reputation of a company. You can also check their social media handles to know what their followers have to say about them.
In most cases, knowing about the past performance of a development firm can give you hints about its future performance. This is why it is important to know about the projects previously launched by the developer. Get answers to the following questions in this regard:
Finding answers to these questions will help you make an informed choice vis-à-vis the selection of the property developer. Easy lies the head that has done its fair share of research and groundwork
This step will help you know about the standing of a property developer and their track record as well. Simply, plan a visit to a couple of projects they have helped with previously. Pay special attention to the finishing and quality of these projects. If possible, talk to residents living there as well. Enquire about the problems they face and how keen the developers are to resolve such issues.
There are different types of payment options available for investors in Dubai. They vary from developer to developer. Some property developers also offer a 10/90 post-handover plan that allows the buyer/investor to only deposit 10% of the property value at the time of buying, while the remaining 90% is paid in the form of installments after the handover takes place.
Investors usually prefer this payment option since it allows the property to pay for itself. For example, they can rent out the property and use the rental value to pay the remaining installments.
The crux here is that you should choose a property developer that offers convenient payment plans and options. This will make the entire process of investment in Dubai rather easy and less burdening for you.
Make sure the property developer you are considering maintains transparency. From the cost of the property to any additional expense, everything should be transparent from the very start. Furthermore, you should thoroughly read and understand every clause mentioned in the contract. In case it is an off-plan property, ask the developer about the restrictions pertaining to its resale. Knowing this is important as some property developers do not allow buyers to sell their units before the project has reached a certain level of completion.
If there’s a slight bit of confusion or doubt, it’s better to get it cleared before signing on the dotted lines.
In all, the importance of selecting the right property developer cannot be stressed enough. Even if you intend to buy a property in Dubai for residential purposes, instead of selling or renting it out later, it’s still crucial to know about the development firm. Both the ROI and your quality of life are going to depend majorly on the quality and standard of the project maintained by the property developer.