What is Off-Plan Property?Off-Plan property is a property before a structure has been constructed upon it. It is a pre-construction property, typically available for purchasing during the construction process of the building. Off-plan property is usually purchased at a discount price to the actual value of the completed state. This makes the property investor more attractive to invest.
Generally, the reservation fee and deposit need to be pay by the investors. The deposit can be anything from 10-25% and upwards of 30% depending upon the development and developers.
Why Off-Plan Property?In a rapidly rising estate economics housing market, buying off-plan is often an appealing option for investors to buy a property at a discounted purchase price as compared to the value of the completed state. It also allows the purchaser to place a deposit to secure the property while construction takes place. The value of the investment in a particular sought after and upcoming areas can grow substantially during these construction periods.
Overall aim of the Off-plan property is a capital growth and secures investment.
Off-Plan Property is a good Investment Option?Buying off-plan property in up-and-coming areas enables landlords to secure luxury, well-located property before they hit their most competitive prices. Off-plan developments can offer maximum potential profits as opposed to buying second-hand or after completion. In addition, buying off-plan may be the only way to get a property with a specific location or set of features as choice.
Key factors to be considered for Off-Plan:-You might have heard many stories about people losing their money while buying off plan property in Dubai and that is mainly because they did not do property homework or their consultant did not give them the right information, hence having right adviser is very important.
There are few things must be take care of and you are good to go.
1. The reputation of developer?
2. Is project registered with Land Department?
3. The Escrow number for project? (Never ever deposit money to developer directly, always ask for an escrow number, verify it by visiting Land Department's website and then make the payment).
4. Always ask for sales and purchase agreement draft before buying/ making any payments. Most of the developers have a standard SPA, usually unchangeable, but it should not stop you from reading the agreement before hand and raising questions on the clauses which you don't understand.
5. Pay the 4% registration fee and get the good certificate from Land Department. This certificate is your property ownership document unless the project is not finished and Title Deed is not issued.
6. Make sure you know the market. Either you will get the price reduced from developer or won't buy a highly priced property in the first place.
Off-Plan Property in Dubai:-With a growing economy and sound political infrastructure there is a lucrative return on the property investment. Dubai is a haven for those looking to put their hard-earned money in the real estate sectors. Dubai real estate market has since garnered a lot of interest from potential local and international buyers. Sales of Dubai off-plan properties hit a 9-year high in 2017, unit sold over 25,000. The trends seem to continue well with more launches and announcements coming in from the real estate sector.
5 Reasons to Invest in Off-Plan Property In Dubai:-
1. Flexible Payment Plan :One of the most obvious advantages of investing in Off-Plan properties is that these projects are not yet constructed and available at significant low cost prices. Because of these attractive offers and feasible payment option makes them slightly more affordable and practical when compared with constructed development plans which are at a high value.
2. Profit Gain:-Dubai is the One of the fastest growing in economies in the world, so real estate investments here are extremely promising in terms of high returns. Once the project has completed the value of the property will be increased. So, even while you're paying off the investment in phases as per the developer's payment plan, you could witness a rise in the market value of your property and expect significant capital growth before or after completion of the project plan.
3. Rental Yields:-Rental income is one of the key drivers for investing in Dubai property. There is always be demand for housing options in Dubai, has there is no sign of slowing down it is a one of the trend. So whether you buy off-plan or ready properties in Dubai, chances are you will earn a decent rental income from your real estate investment, giving you financial security and a firm base in this vibrant city.
4. Protection Laws:-Off-plan comes at a risk. To grant a protection against delays, cancellations or fraud, there are numerous measures taken by RERA (Real Estate Regulatory authority) and Dubai Land Department (DLD) in UAE for the buyers. One such rule is that buyers must make payments for off-plan property purchases at DLD-approved banks. Developers will only be permitted to access funds until the project has reached a certain stage of completion. This will be verified by a project consultant. Such measures reinforce buyers' confidence in the off-plan property market, making it a safe climate to invest with certainty that under normal circumstances properties will be delivered.
5. Variety of Off-Plan Projects availability:-One of the important aspects that investors would consider before making a decision to invest in Dubai is its location. It is a primary factor while choosing an investment property. Some of the best locations to invest in Dubai are nearby offices, tourist spots, business hubs.
There are few things must be take care of and you are good to go.
For primary market first-hand purchases:-
# You can directly buy from the developer.
# By making sure that the developer, project and project's Escrow account are all registered in the Dubai Land Department's Real Estate Regulatory Arm (RERA).
# You will process to pay according to the payment plan outlined in the contract; every off-plan project has its own payment plan.
# Make sure the developer registers your property with the Dubai Land Department through the good registration - registration will cost around 4% of the total purchase price.
For secondary market purchases:
# You can buy off-plan units on the secondary market from another owner.
# Make sure the seller has registered the property with the Dubai Land Department and can provide you with a copy of the registration.
# After signing an agreement of sale between you and the seller, you should both go to the developer and apply for a No Objection Certificate (NOC).
# Once the NOC is issued by the developer, the transfer of ownership takes place in a Dubai Land Department trustee office and this is when you pay the seller.
# The total fees will include a 2% commission fee (in case you went through a sales agent/broker), the NOC fee [around 5,000 AED max], and a transfer appointment fee [4,000 AED].
But it becomes very difficult to choose the right and genuine real estate company. Many big off plan developers are developing amazing off plan projects all over Dubai.
Areas like Dubai Hills Estate, Dubai Creek Harbour, Dubai South and many more are being developed exclusively with off-plan projects and there is a high demand. A huge role played by Expo 2020 in bringing foreign investment in Dubai which in turn has brought many expats.
Now, it's easy to search for your desired and most exclusive homes in Dubai, 91estate.com provides the perfect and exciting properties are in development throughout the city. Dubai will reshape the face of luxury in the city with various beautiful new neighborhoods. Dubai's landscape is forever changing from burgeoning city center to its expanding coastline and stunning man-made islands. It grows into one of the premier lifestyle destinations in the world.
These exciting properties can easily search with your desired property or its location based on your preference. Throughout the city some projects are developed in established and popular districts and other as part of upcoming project.
Here you can easily compare prices and features of Dubai's latest off plan properties by accessing all the latest information along with the full details about each project with locations.
Here is your One Stop portal to browse all the latest details off plan projects in Dubai from Prominent property Developers.
There is no better time than now to invest in off-plan Dubai properties.