Tips to Remember Before Buying Off-Plan Property in Dubai
In 2002 the UAE approved the freehold law, and Dubai has become one of the best places for real estate investors who want to buy, sell, rent or lease property. Dubai’s today real estate market is a stable one that has survived different economic challenges. So, many investors like ex-pats living in Dubai, wish to buy a property for sale in Dubai as a viable investment opportunity.
Pay attention, you have to consider important information before stepping into a property purchase, especially if it is your first case. This will help you to avoid the financial losses of a failed investment. Below here, you can read about some of these essential tips to buy a great off-plan property sale in Dubai.
What should I consider before buying an off-plan property in Dubai?
Here are five of the most important tips that you have to remember to choose an off-plan property in Dubai.
● Know the property buying process in Dubai.
When an investor wants to buy an off-plan property in Dubai, the developer asks for certain documents, such as a passport copy, Emirates ID, and reservation form (containing the deal’s terms and conditions). Also, the investor has to pay a fee of 5 to 15% of the total amount for reservation or booking. This is especially to draw up the Sales and Purchase Agreement (SPA) that has to be signed by both parties. If you are intending to buy off-plan property from a real estate agent, make sure that the broker is registered with the Dubai Land Department. Choose one that effectively connects you to developers and guides you throughout the purchase process.
● Research your desired property.
Before any decision, you have to research about the off-plan property you want to buy. If buyers of ready properties hire surveyors to check the premises of their prospective home, off-plan projects should also be given such thorough inspection. Also, you have to search about the developer’s legacy to see if they have a successful record of ending properties on time. The location is another item that you have to consider, for example, is it near grocery stores, schools, shopping malls, restaurants, and other necessary areas. Are there transportation stops available? Is it located near your workplace? If possible, personally visit the area to scout if any factors would be disadvantageous to you.
● Calculate the additional acquisition fees.
More than the actual price, there will be other charges when you want to buy off-plan property. There might be costs like legal fees, developer fees, or agent fees, and a 2% Dubai Land Department (DLD) fee for land registration. I recommend you find the total amount of extra fees, as it can be a relatively huge amount when combined with the price of your chosen off-plan project in Dubai.
● Get expert advice.
Pay attention, you can not miss consulting with a professional before purchasing a property. While you might think it is not necessary as it was not mentioned in the law, a legal expert and a real estate advisor can help you prevent untoward losses or failed investments.
● Carefully review and understand your property contract.
After gathering all the needed information and consulting with experts, you have to review and understand your agreement. Buying off-plan projects in Dubai or even ready properties require legal documents such as a Memorandum of Understanding (MoU) or a Sale and Purchase Agreement between the buyer and the seller. These legal documents detail the complete terms and conditions, including the responsibilities of both parties. When you want to buy off-plan property, you have to be careful that the completion date is mentioned in the agreement. Also, check that the compensation for delay is mentioned in the expected completion date. And finally, remember to sign the agreement when the contract content is completely clear to you.
If you want to find all the information about the best off-plan property in Dubai, open the dxboffplan website. There, you can search for price lists, payment plans, floor plans, and other basic information you need. Also, if you need to get informed about the background of Dubai’s best developers, their legacy in the real estate business, and their previous projects, contact us online. We are here 24/7 to answer all your questions for free.