Investing in off-plan properties has an obvious attraction: the price. But lower prices often come with inflated risks. It is very easy and familiar for a buyer, especially an inexperienced one, to make mistakes. To ensure you get the most out of your investments, we've compiled a list of things to consider when planning to buy off-plan in Dubai.
What does off-plan property mean?
Before we discuss some tips for buying off-plan properties in Dubai, let's see what it means. An off-plan real estate investment means purchasing a property still in the planning or construction stage.
How to buy off plan in Dubai
There are several things to consider when understanding the “process of buying an off-plan property in Dubai”. There is a lot to consider, from choosing the right project to considering location and future return on investment (ROI). To help you find the perfect investment opportunity, here are some things to consider when planning to buy off-plan in Dubai.
Find the right property
When you are looking to know how to buy an off-plan property in Dubai, the first step is to find the right project to invest in. Explore various projects from leading developers.
There are many real estate developers in Dubai and they build various projects in different parts of the emirate. You will surely benefit from extensive research on these developers and the areas where their projects are located. Various property-related exhibitions are held in Dubai, and a visit to such an event will connect you with the right developers and projects.
Developer Research
Antes de hacer cualquier otra cosa, investigue su historial de desarrollo y es mejor considerar los proyectos anteriores del desarrollador. Cuando se planea comprar propiedades sobre plano en Dubai, es esencial analizar la reputación del desarrollador entre los compradores, el historial de entregas de proyectos anteriores y la calidad de los proyectos. Varios promotores inmobiliarios en Dubai ofrecen una variedad de proyectos sobre plano.
Find a trustworthy real estate agent
Selecting a trustworthy and experienced real estate agent or agency is crucial if you want to buy an off-plan apartment in Dubai or a villa. These professionals typically have long-standing relationships with reputable real estate developers.
A real estate agent will defend your name and ensure that all contractual terms and the delivery process go smoothly. They take the time to understand your preferences and budget to select properties that fit your needs.
It is important to work with a certified off-plan real estate agent registered with the Dubai Land Department and Dubai RERA (Real Estate Regulatory Agency). A reputable agent will also thoroughly compare various off-plan properties in Dubai, helping you make an informed investment decision. You can also benefit from Bayut's TruBroker™ and connect with agents who are genuinely committed to your needs.
Evaluate your financial situation
When you buy an off-plan property in Dubai, you pay between 20% and 80% of the total amount upfront, and then the final amount is settled after the project is completed. The most common payment plan is a 50/50 equal split, so you should be fairly certain of your financial situation at the estimated time of project completion. Evaluate all risks before taking the step.
Reserve the house of your dreams
After doing your due diligence and assessing your financial health, it's time to reserve your property off-plan. It is one of the most crucial steps in the process of buying an off-plan property in Dubai. You can visit the real estate agent and close the deal through him. Another option is to visit the developer's sales office, where you can select and reserve the specific unit.
To secure your chosen unit and ensure that it is no longer available to others, you will typically need to make an initial deposit, which typically ranges between 5% and 10% of the total property price (may vary depending on the project).
Sign the SPA to buy off plan in Dubai
The next step is to sign the reservation form and the Sales and Purchase Agreement (SPA) of the selected unit. It's worth mentioning that a dedicated real estate agent can often negotiate favorable terms on your behalf to get you a good deal. Once the agreement is reached, you will have to pay the fees to obtain the property upon completion.
Now that we have addressed the frequently asked question “how to buy an off-plan property in Dubai”, it is time to analyze the advantages of investing in these properties.
Capital growth potential
Whether you are looking to buy an apartment or have plans to buy an off-plan villa in Dubai, another aspect to consider is the capital growth potential of the project. It is important to consider this point if you intend to sell the property for a profit in the future. Check the location of the project and do your homework on the property's return on investment and price appreciation.
Make sure you also have all the information about the quality of the project. Sure, the brochure and website look impressive, but can you guarantee that the final product will look fantastic?
This is where researching the quality and track record of your developer comes into play to appreciate the price in the future. Make sure you invest your money in developers who have a good reputation.
Once you have analyzed the above questions, you should be able to know precisely whether you are in a position to buy an off-plan property in Dubai.
Option to sell before project completion
The Dubai off-plan property contract can often be sold before the project is completed. If the market is performing well and the project is popular, this will generate huge profits for the seller.
There are several aspects to consider when selling an off-plan property in Dubai. The developer may have terms and conditions that prohibit him from selling the property to another person before completion. Check with real estate agent and developer for details.
Comes with buyer protection
The Real Estate Regulatory Agency (RERA) also put in place regulations that have added more protection to buyers against many illicit activities and sudden changes of plans (such as long delays or cancellations).
With all the benefits that off-plan properties offer, it is worth considering some disadvantages. Let's look at some risks of buying an off-plan property in Dubai.
The project could be delayed
The problem most cited by those who buy off-plan properties in Dubai is that the project can be delayed. In many cases, there have been delays in deliveries for almost a year or, in some cases, more than a year after the quoted delivery date. Some projects have even been canceled entirely! So hope for the best, but don't be surprised if your project runs a little late.
Change in market conditions
Another disadvantage of getting an off-plan property for sale in Dubai is the sudden change in market conditions. During the COVID-19 pandemic, the real estate market experienced a downward trend in property prices, resulting in a decrease in real estate values. In most cases, the market tends to rise after conditions improve, but loss of value is a risk you should consider before investing in an off-plan project.
A portion of the sales price must be paid before selling.
While buyers can sell their property off-plan, there may be limitations if you consider selling it before it is completed. Many developers in Dubai require buyers to pay a specific portion of their off-plan property purchase before allowing resale. Therefore, it is a good decision to contact the developer and ask them about the minimum amount you need to pay before selling your unit off-plan.
Do you prefer to pay the predefined amount once the project is delivered? Consider projects that offer post-delivery payment plans.
It takes time to give good returns
An off-plan property can take a long time before it can offer a good return on your investment. If you are looking for short-term profits, this may not be the right investment.
Several areas offer affordable and luxury off-plan projects in Dubai. Use the Dubai Sales Transactions page to assess trends in your area of interest.
JVC
Al Furjan
Arjan
Dubai Hills Estate
Dubai Creek Harbour
Emaar is a top-level real estate developer with several projects under his belt. Emaar off-plan projects in Dubai that you should explore include:
PALMIERA AT THE OASIS
Palmiera at the Oasis is an upcoming development offering 4 to 5 bedroom family homes. It will be located at The Oasis.
THE HEIGHTS COUNTRY CLUB
Potential investors considering buying off-plan in Dubai may also consider The Heights Country Club. The 81 million square foot development will feature 3 to 4 bedroom townhomes and 4 bedroom villas.
AVENA AT THE VALLEY PHASE 2
Avena at The Valley will be perfect for those looking for off-plan areas with modern villas.
VELORA AT THE VALLEY PHASE 2
Our guide to buying off-plan property in Dubai also includes the second phase of Velora at The Valley Phase 2. It will feature 3 to 4-bed townhouses.
What does it mean to buy an off-plan property in Dubai?
Buying an off-plan property in Dubai means buying a property that is still under construction or has not been built yet. These properties are available at a discount and offer good potential for price increases.
Can non-residents buy off-plan property in Dubai?
Yes, non-residents can buy off-plan in Dubai. There are no restrictions on property ownership for expats in freehold areas in Dubai. However, property rules may vary depending on the location and type of property in Dubai.
What documents are required to buy an off-plan property in Dubai?
Here is a general list of documents you may need to submit if you plan to buy an off-plan property in Dubai. Please note that this list is not exhaustive and you may need to submit other documents for the actual purchase.
Emirates ID (copy)
Emirates ID (copy)
Sale and Purchase Agreement (SPA)
Reservation form
Mortgage contract (If applicable)
This concludes our guide on how to buy off plan in Dubai. There couldn't be a better time to invest in one of the many real estate projects currently for sale in Dubai. These properties tend to increase in value over the long term and offer fruitful rental returns.
Foreigners can also invest in usufruct properties in the United Arab Emirates. Discover our complete guide to beneficial ownership agreements and learn everything you need to know about this unique investment opportunity.
Those looking for off-plan developments to invest in Dubai should consider Binghatti off-plan projects. These developments feature stunning accommodation with premium facilities.
