Buying an off plan property in Dubai comes with immense benefits, but not all types of property can give you the leverage as buying an off-plan or under construction property.
First of all an off-plan property will allow you to breathe a sigh of relief because investing in under construction property will protect you from shambling with the burden of home loans or mortgage.
Recently, we are seeing a boom in property sales, but buying an off-plan property that is 30% below the market value has its own advantages. Here are some tips to help you understand the process of buying off-plan property in Dubai.
Select the best location to buy off-plan property:
Your decision to buy off-plan property is definitely a wise one but don’t rush!
Before purchasing an off-plan property, consider these factors:
- Contact a well known real estate consultant
- Check the location of the property and its surroundings.
- Analyze the convenience and facilities available within the property.
- Check out the cost and payment plans.
- Check out the date of completion and ask for the time it will be handed to you.
- Evaluate the cost of property based on the current market value.
- Seek information about the development master plan.
- Check out if they are registered with RERA.
Buying Off-Plan Property from a Developer:
When you are buying off-plan property directly from a developer, here are a few things that you should take into account:
- Make sure that the developer’s project and the project’s Escrow account are registered with RERA in the name of the project.
- You may check the project registration and progress on this government website.
- Ensure that your property is registered with the Dubai Land Department via the Oqood registration by your Developer.
- The developer will sign a Sale Purchase Agreement with you, so make sure that the agreement is signed and sealed by the developer.
- In accordance with the payment contract, the developer may pay for the registration of the unit. However, be prepared because buyers are mainly obliged to pay the full cost of the registration amount, which is 4% of the purchase price.
Buying Off-Plan Property from the Secondary Market:
If you are buying an off-plan unit from the secondary market, then here are a few guidelines you must follow:
- Hire a transparent broker as your property finder in Dubai to help you purchase the best under construction property.
- Check the broker card or check whether he or she is registered under RERA from this government website.
- Check whether the seller has registered his unit with Dubai Land Department.
- Ask the seller to provide a copy of the registration.
- Go to the certified developer to ask for a No Objection Certificate (NOC) after the agreement has been signed between both the parties.
- In the next phase, the ownership of the property should be transferred on your name in the Dubai Land Department trustee office after you have obtained the NOC and paid your seller.
- Once the transfer is done, you will be responsible for making any outstanding payments to the developer.
Investments made in every property will involve some risks; hence, off-plan property finance in Dubai is no exception.
Off-plan properties can also be risky if you are unaware of the proper guidelines.
Remember the following tips to safeguard your own interests:
- Never get involved with any dealings with unregistered developers, brokers or projects.
- Always make payments through the registered project, Escrow, because this is the only valid way to proceed with the monetary dealings.
- Never accept any payment requests straight to the developer without involving the Escrow account.
- Check out the independent consultant’s project progress report daily before directing any payment to the developer.
- Choose a payment plan that goes well with your budget, convenience and time frames.
- Hire a professional to review the Sale Purchase Agreement thoroughly, and sign it only after you are comfortable with the terms and conditions.