Why It Is Profitable to Buy Real Estate in Dubai at The Stage of Development?
Off-plan property – it is a not finished property bought directly from a developer, rarely from a first owner. In the first case, the first installment is usually around 10-20%. After it, the buyer signs SPA (Sales Purchase Agreement). Thought the size and schedule of the rest of the payments vary from developer to developer, they are usually linked to construction. In 2019, the off-plan property transactions were less than 40% of Dubai’s construction market. It shows that this type does not fit all the investors. Indeed, this kind of development is best suited for investors; end users may want to get their property as soon as possible. But if waiting for a future house is not in issue, off-plan property is an excellent opportunity to purchase a real estate at the lowest prices possible.
Advantages of off-plan property:
1. The primary advantage, of course, is savings. Buying property with off-plan allows an investor to get the lowest possible price.
2. To sell before the project is completed. It is often a situation when investors can find a buyer prior to the handover of a project. It certainly brings a significant profit, if to assume that the project became popular and the market performed well.
3. The chance to choose the best apartment. Getting to choose first allows picking the best option from the available ones, which increases the possibility of maximizing the return on the investments.
4. To get a lower front cost. With some developers, the down payments start with only 5%, and the rest are linked to construction. It makes the expenses very low.
Costs and Fees of purchasing an off-plan property
For buying an off-plan property, Dubai Land Department charges to fees:
- Property Registration Fee at a rate of 4% of its stated value.
- Oqood Registration, its amount is AED 3,000.
How to guarantee that the projects will be completed?
The Real Estate Regulatory Authority (RERA) established many regulations for developers to ensure that project will be completed. To meet these directions, the developer, for example, must:
- Own 100% of the land belonging to the project.
- Submit a 10% performance guarantee.
Meet one of the options:
- To finish 20% of construction before starting the sales.
- To make a down payment of 20% of project value in a bank as a guarantee.
- Or to put 20% of property value in an escrow account.
However, the best way to guarantee your investment is to get a property from a
known developer with an impeccable reputation.
Our highly qualified agents will help you to choose the type of a property, and give advice on which area is the best to invest. The purchase can be done personally or remotely, and the payment can be made either by cash or cryptocurrency.