Are you desiring to invest in real estate and buy off plan property in Dubai, then we are here to assist you. Let you know what is an off plan property first. A property which is under development or in starting phase of constructing is known as an off plan property. This kind of property is bought from the developers or builders directly by giving them a 10 or 20 percent of the whole amount as the down payment. The buyers also sign a sale-purchase agreement with the developer or builder. This off plan property could be a villa, apartment, or a house.
Advantages of buying off plan projects and property
Before you buy off plan property in Dubai, know its advantages and profits you are gonna earn:
- Earn Profit and sell it before completion: The off plan properties have this very basic advantage that they can be sold without completion. And if the real estate market is doing well, you may earn a profit while selling off plan properties.
- Easy on Pockets: If you are lacking some money while buying a property then off plan properties will be the best alternatives for it. Initially, you have to pay just a small per cent as the down payment. Then you can pay the rest in installments easily to buy off plan projects.
- Lower upfront costs: Since you have to pay a 10% to 20% down payment to the developers, the required cost of construction is relatively low. Thus when you buy off plan projects you can always reduce your costs.
Potential Risks in buying off-plan property:
- Bad Market conditions: With a change in time, there is a change in the real estate market too. So, during the construction of your off plan property, if the real estate market does not perform well, the value of your property will decrease.
- Delay in completion: Due to many conditions and reasons, there could be a delay in the completion of your project. It could be climate, personal problem, disease, labour strike and etc.
When can I sell my off-plan property?
If you want to sell your off plan property before its completion, you have to initially make a token payment. Later you can sell your off plan property to the buyer in return of that minimum amount plus profit. Also, you need to sign some documents and sale NOC. You receive your price for buy off plan properties with some profits.
Step-by-step guide to buying property in Dubai
Finding the right property adviser in Dubai. Dubai property market is very different to other countries in the world, making sure you have a Dubai real estate agent you trust to guide you through the process is crucial.
My Dubai Properties is one of the most established Dubai estate agents specializing in property for sale in the most sought-after areas of Dubai.
We provide a bespoke Dubai property buying service, making sure you find the right Dubai property whilst supporting you throughout the buying process.
Living in Dubai
We can help you with every aspect of relocating to Dubai such as giving advice on where to buy according to your work or lifestyle needs.
Any person of any nationality, whether based overseas or a resident of Dubai, can purchase in Dubai’s freehold property market in designated areas as authorized by His Highness the Ruler of the Emirate of Dubai.
You are not required to hold any type of residency or similar permit in order to purchase property.
Leasehold and Freehold property in Dubai
The majority of developments that My Dubai Properties handles are freehold, though there is a mixture of leaseholds ranging from 30-99 years
An average property transaction in Dubai takes 30 days to complete from the date on which the Agreement for Sale is signed.
The procedures for purchasing real estate in Dubai are straightforward, for the most part.
- Buyer and seller agree terms
- A Memorandum of Understanding (MOU) is signed and a deposit (usually 10%) is paid.
- The parties meet at the offices of the developer to apply for a No Objection Certificate (‘NOC’) to sell the property.
- The developer will usually issue the NOC against a payment of a fee once the developer is satisfied that any amount due to the developer in the form of service charges have been settled in full.
- Once the NOC is issued, the partied are able to go to the office of the Dubai Land Department to officially transfer ownership. The Dubai Land Department will insist on payment of the purchase price being made in the form of a manager’s cheque made payable to the seller on the date of transfer. Once formalities are completed, a new title deed will be issued in the name of the buyer.
- If the buyer is purchasing with a mortgage then the bank’s involvement will be required. If the seller has a mortgage on the property the buyer is required to settle the seller’s mortgage in full prior to the NOC application. This increases the risk for the buyer and means the transaction is more complicated.
- Original Passport
The following fees will generally apply to the sale and purchase of real estate in Dubai:
- NOC fees – these can range between AED 500 and AED 5,000 and are payable to the developer, usually by the seller. Certain developers also levy a refundable deposit upon the buyer which is only refunded when the buyer presents the new title deed at the developer’s office and their records are updated.
- Real Estate Agent’s commission is 2% of the purchase price
- Transfer fees – these are calculated at 4% of the purchase price with an additional amount paid towards admin fees which currently is not in excess of AED 5,000 and is paid to the Dubai Land Department.
- Mortgage registration fees (if applicable) are calculated at a rate of 0.25% of the registered loan amount and paid to the Dubai Land Department.
- Developers ask for their annual service charges to be paid in advance and buyers should therefore account for their pro rate share upfront.