Time for reading: 10 min
Off-plan property – it is a not finished property bought directly from a developer, rarely from a first owner. In the first case, the first installment is usually around 10-20%. After it, the buyer signs SPA (Sales Purchase Agreement). Thought the size and schedule of the rest of the payments vary from developer to developer, they are usually linked to construction.
In 2019, the off-plan property transactions were less than 40% of Dubai’s construction market. It shows that this type does not fit all the investors. Indeed, this kind of development is best suited for investors; end users may want to get their property as soon as possible. But if waiting for a future house is not in issue, off-plan property is an excellent opportunity to purchase a real estate at the lowest prices possible.
In 2020 in Dubai, the average price for an off-plan property sq ft is 719AED compared to 1,304 AED per sq ft for a ready property. Almost two times less! It again proves how significant investors can profit from investing in such kind of development.
Possibility to get a property in a prestigious development. There are magnificent properties available for off-plan in Dubai, such as
All of these projects are likely to be sold out shortly before their completion, so the off-plan property is an excellent opportunity to get a property in these developments in Dubai at the lowest price possible.
Costs and Fees of purchasing an off-plan property
For buying an off-plan property, Dubai Land Department charges to fees:
Nevertheless, it is a regular practice within an off-plan purchase for Dubai developers to pay some, or sometimes all of the fees.
Dubai’s market is secure to invest in due to numerous measures being taken to ensure its stability. One of them is to prevent suspicious activity around off-plan. Many developers set a certain level of payment that needs to be done to be able to sell.
For example, one of Dubai’s largest developers, Emaar Properties, requires 40% off-plan property paid before the owner can sell it. Once this requirement has been met, the process of selling an off-plan property is very similar to selling a ready property. After the price and terms of purchase has been agreed, the buyer and seller sign contracts and apply for a No Objection Certificate (NOC) where the new buyer is registered with the developer. After the transfer is complete, new owner takes over all the outstanding payments.
The Real Estate Regulatory Authority (RERA) established many regulations for developers to ensure that project will be completed. To meet these directions, the developer, for example, must:
However, the best way to guarantee your investment is to get a property from a known developer with an impeccable reputation.
It is a gated waterfront community that offers 1 to 3 bedroom apartments, located in picturesque surroundings with world-class facilities at the doorstep. The floor to ceiling windows provides not only natural sunlight throughout the whole day but as well the stunning panoramic views. The community offers such amenities as local parks, commercial centers, nursery & kindergarten school, clinic& health center, community hall, and a spectacular 7 km crystal lagoon. The development is perfectly located:
Emaar is one of the biggest and most trusted developers in Dubai. Their projects are an excellent example of secure off-plan property purchase. Executive Residences is just one of the numerous options on which their off-plan property plan can be presented. It’s planned to be completed in the second quarter of 2021.
Executive Residence is the most awaited residential/commercial project in Dubai. It was proved by the DMCC Free Zone authorities to be a free zone business area that gives its investors 0% Personal and Corporate Income tax, 100% Business ownership, and a 100% Capital Repatriation. Besides that, they have a possibility to get a Free 3 Year Renewable Business License together with a Free 3 Year Renewable Family Residence Visa after just a 20% payment in advance.
The development offers such superior facilities as a health center, Business Cafe, Zen&Yoga Center, Edge Pool, Meeting Rooms, and numerous parks and resting areas. It is located next to the Dubai Hills Boulevard and Dubai Hills Park.
Off-plan property is a great investment in Dubai. It gives you numerous advantages:
There are risks involved as well, but thorough research of developer’s history can easily avoid them.
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