How to acquire off-plan property in Dubai?

Off-plan real estate is the purchase of an object at the development stage. The apartments may yet exist only in the form of a plan or a foundation pit, bare walls, or decorative finishes that have just begun, but they have an address, a description, and a cost. And the price of such an apartment or a country house is lower than that of a similar one already ready for occupancy. The difference in price makes off-plan real estate investment attractive - the cost per m2 grows with each floor added by the builders, and on the day of the official commissioning, it adds up to 20% at once. Expecting to increase capital or save money, you may find flats to buy in Dubai Creek Harbour or other regions. Experts consider this category of proposals in the first place. The UAE breaks all records in this matter - only in the first months of 2023, compared to the same period of the previous year, the demand for off-plan real estate in Dubai more than doubled. In absolute terms, this is more than 15 thousand successful transactions.

Advantages 

To understand in detail that this is an off-plan property, you can consider offers in any of the major residential complexes in the emirate. Developers offer to purchase a still unfinished residential or commercial property in a building that has not been commissioned:

• immediately after the approval of the plan;
• during the main construction;
• at the finishing stage.

A potential buyer can consider the current state and prospects - the approximate date by which it is planned to complete the work and hand over the object. The statistics allow you to trust the last figure - the premium developers of the emirate have more than 85% of off-plan real estate in Dubai rented on time or ahead of schedule. The agent will give detailed statistics for each specific developer.

Selling off-plan real estate in Dubai is beneficial, first of all, to the developer himself. This makes it possible to attract money for the work and reduce the stage of the sale of ready-made space. In multi-format communities, this also makes it possible to plan the percentage of commercial space and guarantee future residents the proximity of service and retail outlets - even on the plan. Buyers can see which brands have purchased meters in neighboring buildings or floors.

The main advantage for the buyer is the price. On average, the difference with newly finished objects is 22%, with the secondary market - up to 15%. For those considering buying property off-plan Dubai provides other benefits:

Installment payment. Offering off-plan real estate in Dubai, developers immediately announce the payment schedule. For most objects, these are schemes of 30-30-40 or even 10-40-50 as a percentage at the prepayment, development, and delivery stages, respectively. In such cases, the client only pays a significant part of the funds upon receipt of the keys.

Possibility of resale at the stage of construction. The price of a Dubai off-plan object is constantly growing, depending on the speed of construction and under the influence of other factors (economic and political situation, market, and seasonal demand). Even in the form of a contract, the meters belong to the buyer, so he can resell them at any time - having won 5-10% of investments on a local price hike.

Large selection of objects. Off-plan real estate in Dubai is offered much more often than ready-made areas, and precisely because the footage is being sorted out at the construction stage. By the time the developer is ready to hand over the keys, the most profitable addresses will already be booked. Those who buy ready-made new buildings are left with no more than a quarter of the initial offer.

The choice of planning and the opportunity to participate in its creation. Premium developers allow buyers to make adjustments to specific plans themselves. At the construction stage, you can specify the dimensions of individual rooms and, if the area and type of object allow, add partitions, zones, and elements. These architectural wishes will, if possible, be considered and initially fully agreed upon, as opposed to later introduced independently.

Experienced agents working with Dubai real estate advise, when buying in other regions, to evaluate the developer's reputation, look at the history of his projects, and have an option in reserve for unforeseen cases of postponing delivery dates. Fortunately, the statistics are on the buyer's side - the overwhelming percentage of off-plan real estate in Dubai is rented out on time. Excessive demand for investment-promising family apartments, villas on the coast, and studios in an economically stable area make developers work honestly and quickly.

Purchase Features

The rights of the off-plan property buyer in Dubai are protected by law. In 2020, RERA (Real Estate Regulatory Authority) was created, which monitors the fulfillment by the developer of its obligations even before the announcement of the start of sales and at each stage. All requirements are aimed at ensuring the financial security of the transaction:

• the developer must own the land for construction;
• all projects need to be coordinated (heights, landscape compatibility, environmental and architectural issues);
• for Dubai properties, 20% of the work must be completed before the start of sales;
• money from buyers goes to the escrow account, and from it can only be used for its intended purpose;
• 10% of all money received due to the sale remains in the same secure accounts to compensate or pay for improvements required after delivery during the year.

The requirements for developers are constantly getting tougher. For private developers, the sum insured has been increased to 50%. At the same time, the buyer himself deposits money by the agreed plan - the rest of the subtleties do not concern him.

How the transaction goes

When concluding a purchase agreement, the client pays the initial amount and the cost of Oqood Registration (Certificate), that is, registration of ownership. This fee is AED 3,000 or $800. The rest of the amount is divided into the agreed percentage after the transfer and equal parts during the remaining period. The developer often pays the DLD or one-time fee, which in Dubai replaces the property tax. This item is also included in the contract.

The UAE is one of the most profitable real estate investment destinations. Emirates.Estate will offer dozens of properties for sale in Dubai at any stage of construction - areas with a high payback that will fully suit your requirements. Leave a request - and the manager will contact you to ask about your wishes and send a selection of the best options in the Dubai market.