Many people wish to buy a home in Dubai. However, exorbitant property costs are frequently a big impediment to making this ambition a reality. Even while Dubai property prices have not yet reached their peak levels of 2014, as the market continues to rebound, they are still too high for some. This is where the possibility of buying off-plan property comes into action.
The primary (off-plan) market in Dubai has experienced rapid expansion. According to DLD, 17,081 sales for off-plan houses were completed in Dubai in 2021. The total value of these deals was AED 30.9 billion.
For the uninitiated, off-plan property is a sort of property 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 for the property to be completed and handed over, such properties are generally less expensive. Additionally, in order to attract more purchasers, developers provide flexible payment options such as 10/90 or 5/95.
Tips for Buying Off-Plan Property in Dubai is a Simple and Easy Process
While off-plan houses have made it easy for many people to acquire property in Dubai, there are some factors to consider. If you are not courteous and cautious, you may find yourself to be sinking. Follow these helpful techniques to avoid anything like this happening to you:
Many customers, especially first-time buyers, are primarily concerned with the asking price and payment plan. They are impressed and finalize the deal. This is a blunder you must avoid at all costs. Before purchasing an off-the-plan property, always inquire about the price per square foot of the property. This will give you a better idea of whether the supposedly inexpensive home you’re considering purchasing is truly affordable.
If you do not pay attention to this element, you may wind yourself purchasing an off-the-plan property for the same price as a ready property. So, use caution and make sure you understand what you’re paying for. For example, understand if you’re paying for the interior or overall area. If the house has a balcony/terrace, make sure its sqft pricing is less than the interior area’s sqft price.
- Examine the Project’s Legitimacy
This one is critical. Before finalizing a project, always double-check and verify its legality. Although only registered projects can be marketed, the new property advertising regulation requires that the same be verified by visiting the RERA portal. Aside from that, do not make payments in any other account except the property’s escrow account. This guarantees that your payment is secure even if the project is canceled.
- Learn More About the Location
Location is more important than you think. It will have an influence on your lifestyle (if you want to reside in the home when it is finished) and returns (if you intend to sell or rent it out). In any case, you should do your homework and know everything there is to know about the site. Don’t just believe what the developer says. Make a point of visiting and inspecting it in person. If it’s a waterfront property with plenty of views of lakes or the sea, ask the developer about any developments planned in the surrounding region so that those ‘promised vistas’ aren’t blocked or impaired later on.
Also, purchase a property in a well-established neighborhood. Buying in undeveloped regions is less expensive, but it will take a long time to achieve a profit. Take into account any prospective projects around the property, such as parks, educational institutes, other developments, and so on. More information on the finest places for off-plan houses can be found here.
- Examine the Developer’s Reputation
Many people are unaware of this information, yet it is critical. Learn about their prior projects and how successfully they managed them. Is the handover finished on time? Did the property provide all of the services and features that were advertised? What is the project’s current market value? Knowing the answers to these questions will allow you to make an educated decision.
- Employ a Real Estate Agent
This may surprise you because many people advocate purchasing an off-the-plan property directly from the developer. Hiring a real estate agent or using a property site, on the other hand, might be advantageous. For starters, contacting a developer directly narrows your options. A developer will almost definitely not inform you about other prospective projects that may be of interest to you, but an agent would. Similarly, experienced agents are well-versed in the industry. They can predict price changes and future trends. As a result, they can better advise you when it comes to choosing an off-plan house.
You will eventually require the services of an agent after handover, whether you are selling or renting out your property. As a result, including them in advance won’t hurt. However, always use experienced and competent agents who are knowledgeable with off-plan properties.
You, like the developer, must learn every aspect of the residential project you have chosen for your off-plan house. If you’re thinking about buying an apartment, go for a cluster of buildings rather than a single one. This advice is based on the fact that the former includes a more advanced collection of features that appeal to more consumers. This enhances the likelihood of a high ROI.
In terms of facilities, you should be aware of what your home has ahead of time. Remember that not every residential complex in Dubai has a gym, swimming pool, recreation areas, and so on. Because the provision of these amenities has a significant influence on the ROI, you must understand which ones are provided.
Examine the property’s livability, saleability, and rentability. If it has a balcony, make sure it is large enough. Take into account the layout as well. Determine how many bedrooms and bathrooms will be on the property. A better strategy is to invest in a project that includes a display property. This will help you grasp the finishing and other aspects. However, keep in mind that you will not receive the exact unit shown. However, being aware of all of this in advance may be really advantageous and spare you from unanticipated ‘surprises’ later on.
Obtain the authorized site plan from DLD for a better understanding. You will learn about the property’s specific perspective, direction, measurement, position, and overall size breakdown this manner. If the property does not conform to the agreed layout or dimensions, you have every choice to deny the property handover.
- Discuss the Payment Plan in Detail
Discuss the payment plan in detail before finalizing your off-plan property. Understand the payment conditions and what may happen if you do not pay your installment on time due to unforeseen circumstances. Inquire about the exit strategy as well.
Always remember that the higher the post-handover plan, the better. In other words, a greater post-handover payment plan indicates a more secure investment. Furthermore, it is preferable to invest in a project that includes a progress-based strategy. In such a scheme, for example, installments are paid based on building progress.
- Thoroughly read the contract.
Finally, properly read the contract. If you don’t understand a certain phrase, ask for help. Check for hidden conditions and restrictions that may limit your ability to sell the unit before it is finished. Also, be aware of any service fees or other expenditures linked with the project that are listed in the agreement.
Overall, purchasing an off-plan house might be advantageous to you. It may serve as a stepping stone into the ever-expanding Dubai property market. So, do your homework and follow all of the advice above to guarantee you’ve made a sound investment.