The idea of buying off-plan property in Dubai is growing in popularity. For decades, off-plan property has been a viable option in the real estate sector, and many property investors won’t buy anything else. However, with Dubai’s growing regional and international reputation, more real estate investors are now turning to the country to find out more. Additionally, with Dubai offering attractive incentives like the retirement visa, they aren’t the only ones interested in off-plan property. Naturally, though, some people are cautious. They only like to buy property that is completed bricks and mortar. So, this article explains the definition of off-plan property in the real estate sector, why buy off-plan, pitfalls to watch out for and other tips for making a successful purchase.
About Off-Plan Property in Dubai
1: Why Buy Off-plan Property
Dubai’s Growing Profile: Thirty years ago, the thought of investing in Dubai property was a foreign concept to most people. However, these days, Dubai earns admiration and respect for its growing economy and solid political system. These two combined are what most real estate investors like, and Dubai offers both.
Proven Track Record: Dubai first opened its freehold real estate sector to foreigners in 2022; since then, sales have increased yearly. Additionally, many foreigners buy property, live and raise a family in Dubai. As a result, the destination is rising to become a top ex-pat haven.
Lower Prices: Of course, for many real estate investors and average home buyers, the big lure is discounted prices. This is the perk of buying property you cannot move into immediately. As well as offering discounted house prices, some developers provide other incentives to attract investors to their project, like a discount for cash payments.
Payment Plans: Some developers offer structured payment plans with a low APR for those who want to pay over the long term. These prove more cash beneficial than applying for a mortgage. Combine these flexible payment plans with discounted prices to see why off-plan property is viable worldwide.
Capital Gains: As soon as the property is completed and title deeds are issued, that property instantly rises in price. The Dubai real estate market also offers healthy capital gains potential compared to many other foreign destinations.
Choice: Some neighbourhoods in Dubai are still developing; hence the selection of off-plan properties is enormous. Put together all locations collectively, and you will find what you want, whether luxury or budget.
Brand New Quality: For many, the advantages of off-plan property are brand new quality. Depending on what stage of the development you buy, you can also request the developer to install the décor and design of your choice. This offers significant advantages over resale properties.
2: Tips for Buying Off-plan Property
Go Local: While you might look at Dubai as one destination, narrow down your criteria to specific neighbourhoods. Some offer more capital return appreciation than others, and buyers need to know where local amenities are, like transport, schools, mosques, shopping malls and banks.
Rental Return: Local research is essential if you plan to invest in rental property. Places that attract tourists include Bur Dubai and Bur Juman, Downtown and Business Bay, Mina Seyahi Beach, Dubai Media City, Dubai Marina, Jumeirah Beach Residence and Palm Jumeirah Island.
Protect Your Investment: The UAE Real Estate Regulatory Authority and Dubai Land Department have set specific criteria in plans to help you protect your investment. Only pay for the property via DLD-approved banks. The reason is that developers can only access funds at certain stages of construction, which have to be signed off and approved. Additionally, the developer must own 100% of the land he is building on and make a down payment of 20% for guarantees.
Allow for Delays: In an ideal world, everything goes to plan; however, when it comes to building and construction, there are always unexpected events. So expect delays, and be flexible where possible.
Snagging Lists: Many off-plan property buyers ignore snagging lists. So before you move in your furniture, do a full property inspection. Check windows, doors, electrical sockets, taps and other minor property features to ensure they work.
Market Fluctuations: Dubai is much like any other global market in that current affairs and circumstances affect the market. Take into account that market conditions can go down and up.
3: Additional Fees
Don’t forget to factor in closing costs alongside property prices; these are the Oqood Registration (AED3000) and property registration fee (4%) to pay to the Dubai Land Department. In some cases, developers will pay 50% closing costs to attract you to their development, so this is something to keep an eye out for.
4: Selling Before Completion
Different developers offer the option to sell. However, some are at 40% competition while others are at 50 or 60% completion. If the minimum repayments have been made, then the process is the same as selling a key-ready apartment.
5: Best Places to Buy in Dubai
Luxury: For ultimate luxury, look to the Crescent Palm Jumeriah. As the largest artificial island, it shapes into a palm tree, hence the name. As well as being a fully functioning community, the area is desirable to buy property in Dubai because of its prestigious status. (About more luxury neighbourhoods in Dubai.)
Budget Property: For those who want to buy budget property, look at International City, Liwan and Discovery Gardens. Despite the budget factor, the fantastic quality of builds means home buyers don’t compromise on location.
Rental Property: sitting at the West End of Dubai marina, Studio One offers potential because it suits young working professionals who want a year-round place to live. Otherwise, for holiday rentals, the downtown Dubai area is perfect.
Families: Sitting North of Dubai and east of the airport, Mirdif stands out as an affordable area, especially for families. The decent selection of international schools offers globally recognised accreditations and qualifications, and social amenities are plentiful.
Villa Properties: Apartment living in Dubai city is a core feature, yet if villas are your preferred choice, look at Arabian Ranches, an ideal community that attracts families who want to buy. With an expected 5% investment, several new future projects make this an exciting area to purchase a home.
6: Find Out More About Properties
If you want to know more about off-plan properties and buying in Dubai, call us today and chat with a local agent. We can answer your questions, provide additional information, and send through a portfolio of off-plan properties for sale in Dubai. Otherwise, please browse our website listings of apartments, duplexes and villas for sale in Dubai. Each listing contains the price, location, home features and contact details to find out more via email, telephone, or to arrange viewings.
7: More About Dubai
Retire in Dubai: The government-run “Retire in Dubai” scheme has gained more attention over the last two years as foreigners enjoying their retirement abroad became the new norm. In recent polls by Veolar, Dubai ranks as the world’s 14th-best city for retirees. This position was based on living standards, but the UAE ranks number one regarding financial security.
Famous Buildings in Dubai: Off-plan property in Dubai is popular, but so are many ready-built buildings. Marking Dubai’s skyline, they reflect innovation and skill, and the city is home to six of the world’s tallest skyscrapers.