Step by Step Guide to Buy Off-Plan Properties in Dubai
The option to invest in off-plan properties have made it a lot easier for investors to venture in the Dubai property market. With the help of this option, people can now buy the otherwise very expensive waterfront apartments at relatively budget-friendly rates. Solely, because they are still under construction.
Apart from the price, numerous other factors go in the favour of off-plan investment. Hence, a lot of investors, both local and foreign, have now started to take interest in off-plan properties. As per statistics, 3,236 transactions worth 4.33 billion were recorded in Q3, 2020 in Dubai primary market.
With plenty of newly launched projects in the emirate, it is a lucrative opportunity for new investors to enter the Dubai real estate market. If you’re also planning to take the plunge, we have got you covered.
In this post, we have discussed the process you’ll need to follow to be able to reserve an off-plan property under your name. Continue reading to enlighten yourself:
Set a Budget
First things first, you need to decide how much you’re willing to invest. Planning is the key to a successful real estate investment. Thus, make sure each move is perfectly planned and scrutinised. And deciding a budget is the first crucial step in planning. If you are planning to lend money, take into consideration the interest as well.
After taking into account everything, decide your budget. Ensure you’re not investing all your life’s savings on a single project. Follow the old-age advice, “do not put all your eggs in one basket”, as a loss can deprive you of everything. So, keep a portion aside for rainy days and invest the remaining.
Select a Project
Again, it’s a very crucial step; therefore, it must not be rushed. You will come across various ‘seemingly’ profitable opportunities. But never take the plunge if you are not 100% sure. The project you’ll be investing your money in must be chosen wisely. It should be developed by a well-known development firm with a clean record.
This is where a real estate agent can come in handy. They will help you to find a project with maximum potential that falls in your budget bracket. As they have extensive knowledge of the market, it’s a wise idea to rely on them rather than the information available on the internet. However, make sure the agent you have selected is professional, reliable and well experienced.
Select the Property Type
In this stage, you’ll have to select the property type. Therefore, decide if you want to invest in an off-plan apartment, villa, duplex, townhouse or penthouse. Your budget is going to play a major role here.
Visit the Developer’s Office and Site
Once you have finalised a project, the next step would be to visit the office of the developer. Talk to the representatives there to get more information about the project. It will help you get a clear idea of the project details and how much ROI you can expect. If you have any questions, feel free to ask them at this stage. Being very inquisitive will prove to be beneficial here.
Also, visit the site of the project to know about the status of the project.
Book Your Unit
Once you have decided everything, it’s time to book your unit. Make sure you have the booking fees ready. It varies from developer to developer but usually, it is 5 to 10% of the property price. After you have signed the booking form and deposited the fees, the selected unit will be reserved under your name and removed from the availability list.
Deposit Your First Instalment
After booking, developers require the buyers to make their first instalment, which consists of down payment and the government registration fees.
Sign the Sales and Purchase Agreement
The deal is sealed when you have signed the SPA – Sales and Purchase Agreement. This agreement should also be signed by the developer to be deemed valid.
Oqood registration ensures that your investment/purchase has been registered in the government records. Dubai Land Development (DLD) will issue the initial contract of sale after the completion of this step.
There you have it! These are steps you need to follow to buy an off-plan property in Dubai. However, bear in mind that before you are eligible to get acquisition of the property, you will be required to pay remaining instalments. The payment plan varies from project to project. For example, the developer of the much-anticipated project and the last waterfront property in Dubai Marina ‘Stella Maris tower’ require the buyer to pay 5% as down payment, 25% during construction and 10% on handover. The rest of the amount (60%) has to be paid post-handover in easy instalments.