About Off-plan Property In Dubai
What Is An Off-Plan Property?
Literally meaning you’re buying an unconstructed home from the architect’s plans, it is possible to get some stunning bargains because of the heavily discounted opportunities. It’s beneficial for developers to sell properties before they are built as it allows them to the security of having a buyer in place for when the project is completed. The buyer usually pays from 5% to 10% as a down payment and signs a sales purchase agreement or SPA. The balance of payments is usually scheduled by the developer and linked in stages to the construction as it takes place.
The Advantages of Buying Off-Plan Property
There are some significant benefits of buying off plan in Dubai including:
You can Save Money
When you buy off plan, you can get a discount on the property price of up to 30% which gives you the opportunity to get more for your money than you would buying a home that’s already been built. It also allows you to cherry pick the best residences in some of the most prestigious developments in Dubai, which maximizes potential returns on your investment.
You can Sell before Completion
When high quality developments commence construction, it generally creates quite a stir in Dubai. For this reason, there is a unique marketplace for off plan properties in the Emirate, making it possible to sell a property while it’s still being built. When the market is performing well and a development is located in a prime area, the opportunities to profit can be considerable.
Reduced Up Front Costs
Although the costs vary slightly from developer to developer, it is possible to secure a home with as little as a 10% deposit, giving buyers the opportunity to plan for the purchase. The balance of payments is usually linked to stages of the construction as it nears completion, making the outlay relatively low compared to buying completed properties.
When Can I Sell My Off-Plan Property?
Dubai’s economy provides a stable climate for investment, largely due to measures taken by the Emirate’s government to stimulate investment in its property. Because of the increased activity in the off plan market and the rising number of buyers opting to sell their properties before completion, some developers have also taken action. For example, Emaar Properties now requires owners to have paid a minimum of 40% of the total price of the property before it can be sold on. This is something that varies from developer to developer.
Once the minimum amount has been paid on an off plan property, it is reasonably straightforward to sell. Buyer and seller agree price and terms, sign contracts and apply for a No Objection Certificate or NOC to register the buyer with the developer for outstanding payments. It is also worth noting that a new buyer will be liable for 4% of the DLD Transfer Fee, even if it has already been paid by the first buyer.
In The News: Off Plan Property Sales In Dubai
According to property market insiders, off plan sales continue to dominate the residential property market in Dubai, with no signs of the situation changing as we head into 2018. Much of this increased activity has been attributed to the recent introduction of a mortgage cap by the Emirate’s central bank.
Conversely, buyers are looking more to off plan homes as a way to get a foot in the door of Dubai’s lucrative property market, given that both the deposit and outlay for off plan is considerably lower. Buyers can pay as little as 5% of the purchase price to secure their property in the off plan sector, which in the face of the mortgage cap is a compelling reason to buy.
Interest in the off plan sector in Dubai is likely to continue beyond 2018 as we get closer to hosting the World Expo in 2020.
You will see on our listings that we have an exceptional range of prime properties available to purchase off-plan. High caliber developers such as Emaar, Dubai Properties, Damac and AZIZI all have first-class communities under construction, presenting some highly compelling opportunities for investors and homebuyers alike. Whether you’re looking for an affordable house or a luxury villa to buy off plan, you’ll find what you seek on our website.