How to Buy Off plan Property in Dubai

Are you dreaming of owning a piece of home in Dubai? Buying off-plan property in Dubai could be the route to making this dream come true. Dubai's stunning architecture, tax-free living, and booming economy continue to attract investors from around the globe to invest in off-plan property. So, here’s a guide on buying off-plan property, benefits, and the best area for off-plan property investment.

What is Off-plan Property?

Off-plan property in Dubai is still in the construction phase, and buyers can directly buy it from the developer before completion. This investment typically has attractive pricing since there are lower entry points than ready-to-move-in properties. 

Why Buy Off-plan Property in Dubai?

Here are a few reasons why buying an off-plan property in Dubai pays well:

• Off-plan properties are sold before completion, and the developers usually offer competitive prices. This makes them affordable for any buyer who wants to invest in Dubai real estate.
• Off-plan property in Dubai increases in price value by the time it is ready to occupy, offering an opportunity for investors to extract huge returns on investment.
• Developers offer payment schedules for off-plan property, where customers pay in installments during construction. This eases the financial load and helps with cash-flow management.
• Most developers offer customization options to their clients, through which they can modify their property according to their preferences. 

How to Buy Off-plan Property in Dubai?

Here are some steps to buy off-plan property in Dubai: 

Step 1. Research and Choose the Right Area

When buying off-plan property in Dubai, one of the first things to do is research and choose the best areas. Researching the Dubai real estate market trends and understanding the areas showing steady demand and growth will help you determine the best places to invest.

Step 2. Select a Credible Developer

The developer's track record is one of the most important things to consider when investing in any off-plan property in Dubai. First, you must ensure the developer is genuine, has an excellent record of timely completion of projects, and quality construction. 

Step 3. Understand the Payment Plan Options

One of the benefits of buying off-plan property is the plans that off-plan property developers offer for payment. Standard plans include paying a certain percentage as a down payment, with the remaining spread over the construction period. Indeed, some plans allow you to pay partially after project completion, which gives you extra flexibility.

Step 4. Review the Sales Agreement

The sales agreement for an off-plan property in Dubai includes the project's delivery date, payment schedule, and other important information. You should review the contract and consult with a real estate lawyer to ensure the terms meet your expectations.

Step 5. Register the Property with the Dubai Land Department

Once the sales agreement has been signed, you must register the property with the Dubai Land Department. The Dubai Land Department charges a registration fee from the buyer for the ownership of the property, usually 4% of its purchase price.

Step 6. Monitor Construction Progress

The Dubai Real Estate Regulatory Agency (RERA) checks off-plan projects to ensure developers follow its set timelines and standards. Buyers can also check their developer's progress on the DLD's website or by visiting the construction site.

Best Areas for Off-plan Properties in Dubai

Here are some of the best areas for off-plan properties in Dubai:

• Dubai Marina is perfect for investors seeking high-end rental yields.
• Famous for the Burj Khalifa and the Dubai Mall, Downtown Dubai is a prime spot for high-end, off-plan investments.
• With a mix of residential, commercial, and hotel developments, Business Bay is ideal for business professionals and tourists.
• Being a family-oriented community, Jumeirah Village Circle (JVC) is famous among families and young professionals.
• Mohammed Bin Rashid City is a new development that is famous for its lavish lifestyle options and proximity to Downtown Dubai.
• Dubai South is an upcoming area, especially with the Expo 2020 site nearby, offering affordable housing options.

Common Risks & How to Manage Them?

While investing in off-plan property is a wise option, there are also some potential risks that investors should consider, including:

• Construction delays can cause project delays. However, these are less likely if one works with a reputed developer with a record of timely completion.
• Property values have increased and decreased within the Dubai real estate market. The long-term appeal of the location should be considered to diversify the risk related to market conditions.
• Review payment plans to avoid overextension and live within your budget. 

Conclusion

Planning to buy a house in Dubai? Buying off-plan property is a great opportunity to enter the market at competitive prices, supported by flexible payment plans with options for personalization. During the construction progress, the value of the property rises and often sets a solid return upon completion.

To ensure a seamless buying experience of off-plan properties in Dubai, research the best locations, select credible developers, and carefully study payment and contract terms. Risks associated with an off-plan investment, like construction delays, might exist, but trusted developers can solve such risks successfully.