Real estate as an investment. Off-plan / Resale
Purchase of off-plan real estate in Dubai
The off-plan purchase of real estate is characterized by the fact that the buyer concludes a legally binding contract with the project developer (provider) for the purchase of the real estate even before its completion. Since real estate "off-plan" is usually offered at a lower price in relation to existing real estate, as well as with additional benefits such as an attractive payment plans, these offers, increase the return on the investment (ROI). It is important to limit the search for properties to reputable, well-funded providers. Nevertheless, it should be said that the legal regulation of project developers in Dubai now has a stringency and consistency that guarantees the correct use of purchase price payments (including through escrow accounts monitored by the authorities). The selection of your off-plan target property -similar to the purchase of an existing property- the characteristics of the project or specific unit under consideration should be carefully analyzed. Key considerations include:
- Location: macro location of the project or micro location of the unit within the project.
- Size of the project: number of floors, buildings or units
- Transportation access, adequate access roads and public transportation
- Amenities of the apartment as well as the public areas
- Proximity to shopping, restaurants, entertainment, doctors, schools, etc.
- Quality of the property (prospectus as well as delivered by the project developer so far)
- Suitability for the intended use (owner-occupancy, short-term or long-term rental)
- Suitability as a basis for issuing a visa
What are the advantages of buying a new construction project (off-plan)?
The advantages of buying a new construction project are definitely that the prices are slightly lower. In addition, you often have a wider choice and the apartments and interior finishes are new. Another powitive aspect is, that the administrative burden of buying a new construction project is also lower.
Should I buy an existing property or a new construction project (off-plan)?
Both options have advantages and disadvantages. The main criterion for deciding here is clearly on the timeline. Do I want to move into my property immediately or do I have a little more time and patience and can wait for completion?
How do I purchase a property in Dubai?
Buying real estate - the process.
- find out which location you prefer and decide which type of property suits your requirements ghe best
- decide what type of property you are interested in / what investment strategy suits you.
- Set your budget (Preferably a price range)
- take a look at our webpage and note down the properties and/or projects you find interesting.
- contact our team of experts by e-mail or phone.
- you will receive all data and facts about these objects/projects from us. We will also inform you about other similar projects so that you can compare them with each other.
- if you are traveling to Dubai or are already here, we would be pleased if you visit us in our offices. We are also happy to arrange appointments with the developers to give you an even better feel for the quality and construction of our properties.
- if you are not in Dubai at the moment, we will of course keep you informed about upcoming launches of new projects.
- as the speed of transactions in Dubai is extremely high we recommend to act fast once all necesary information is received
- reserve an unit. Depending on the developer and it’s project the booking or reservation payment can be 25'000 - 150’000 AED. At the same time you will sign a reservation form. Once the payment is received by the developer he will conter sign and send you the stamped form. Within 5-10 days you will have to transfer the full Downpayment minus the booking payment. Additionally the registration fee ( Dubai Land department ) of 4% of the total purchase price has to be paid. This payment will be forwarded by the developer straight to the Dubai Land Department. Typically this payment goes to the private bank account of the developer, so that the developer can immediately transfer it to the government. The reason being for not paying it to the escrow account is that once a payment goes towards the escrow account of a project, the developer can’t access the money unless he is providing construction progress.
- payments - the partial payments are to be made according to the agreed payment schedule
- completion of the project - the developer is obliged to hand over the property on the date agreed in the purchase contract. Prior to this date, the developer will send you a completion notice to inform you of the upcoming handover. Developers are allowed by law to delay handover for up to 24 months.
- inspection & handover - when the final instalment has been paid, you will be invited to inspect your property on a date agreed by both parties. This is so that you can inspect the property and report any defects to the developer. Subsequently, the developer will rectify the defects and the official handover of the keys to your finished property will take place.