Off plan Guide

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Why Choose Off-Plan?

In case you're considering investing in real estate, off-plan properties are a compelling substitute to consider. Since many UAE developers are offering alluring discounts and flexible payment plans, off-plan properties have become more and more popular among investors in Dubai. Properties that are still in the construction phase are referred to as being "off plan." These projects present profitable investment opportunities, whether it's because of a great location, an exquisite layout, or a designer brand association.

Understanding Off Plan as a Prevailing Trend in Real Estate

Outstanding capital growth: Off-plan properties are a good option if you're looking for capital appreciation, especially if you invest during the development phase. As work progresses, the project's overall value increases, so it's like seeing your investment increase in front of you. You will have a profitable asset on the market once the development is complete.

Flexible terms of payment: The simple payment plan is just another fantastic advantage of off plan. It will be easier for you to pay for your home because the price is spread out over several months or years, depending on the completion date. In order to enable you to make the last few payments after the property is completed, many projects even provide a post-handover plan.

Prospects for investing: Whether you are a novice or a seasoned buyer, your real estate investments should be supported by current statistics and expert guidance. Schazda has included all of this and more, in this guide we aim to assist you in navigating the market, avoiding traps, and seizing incredible new opportunities.

High Return on Investment: There are more opportunities to receive larger returns with lower investments. Off-plan properties are typically reserved by buyers as soon as they are made public. Furthermore, the likelihood of a maximum return on investment rises as the project's value increases and construction moves forward.

Safest Form of Investment: It is considered as one of the safest methods of investments, while the RERA and DLD have implemented special measures to safeguard investments, investment in off-plan properties is still taken into account when comparing off-plan vs. ready property. Once the project is completed to a certain degree, the developers of the off-plan project can access buyer funds. Additionally, the buyers can only make down payments or pay off-plan instalments at banks that have been approved by the DLD.

Buying Off-Plan in Dubai

Investigate the Developer: When purchasing off-plan real estate in Dubai, it is crucial to have a thorough understanding of the developer. Considering how to rate the developer? The best sources are buyers. One can determine whether a developer is sufficiently dependable based on how they are perceived by buyers. Since purchasers are either current or former clients of the developer, decision-makers value their opinions. There are two crucial factors that must be examined: (1) the projects' historical performance record and (2) their overall quality.

Prepare for Delays: When purchasing off-plan real estate in Dubai, buyers most frequently worry about project delays. A year or longer has been observed to have elapsed in the majority of projects in the United Arab Emirates when it comes to their handover. Conversely, some initiatives were completely shelved as well! It is therefore crucial that you remain ready for any delays and express gratitude in the event that the project is completed on schedule.

Evaluate Your Financial Situation: Initially, 20–80% of the total payment is required for all off-plan projects that are for sale. When everything is finished, the entire payment must be handled. Investors most frequently use a 50/50 payment plan, wherein you pay 50% up front and the remaining amount is due when the project is finished. Investors get financial security from it. It's critical to weigh every risk before taking a leap of faith.

Examine Quality Reductions: If visually appealing brochures and websites a sign of high-quality products, in your opinion? This is where your research skills and the developer's history come into play. Ensure that your investment doesn't end up being useless. It is crucial that the developer you choose takes reputation seriously, regardless of how many of the newest off-plan properties in Dubai they have.

Selling Off-Plan in Dubai

Select the appropriate agent: The first thing you should do is locate a reputable and well-known real estate agent. It is preferable to look for a specialist with more knowledge about Dubai. Schazda is the finest when it comes to attracting clients. Selecting them would mean that millions of potential buyers would see your property. Thus, get in touch with them if you're trying to sell your off-plan property in Dubai! Once you have selected, they will work with you to develop a marketing plan for your home and provide market data to support the valuation process. They will also see to it that you close the best deal available.

All required documents are available: You need to have all the necessary paperwork in order to sell your off-plan property in Dubai. It is the appropriate paperwork because licensed real estate agents wouldn't consider application otherwise.

Keeping prospective customers entertained: The hunt for a buyer starts as soon as the seller and real estate agent sign the contract. The first thing that anyone does when they want to buy, sell, or rent a property in Dubai is search online for the top real estate company in the area. Thus, selecting us would enable many prospective buyers to easily access your off-plan project.

Signing a Contract: The final step is to sign a contract among both parties to continue with further proceedings.

Laws and Regulations

A developer is legally required to own all of the land involved in their project, according to the Dubai Land Department. In addition, the developer has to finish 20% of the construction before selling off the plan, or put 20% into an escrow account.

On top of that, the Dubai Land Department offers an official project tracking service to improve transparency and guarantee the security of buyers. This priceless tool enables purchasers to remain up to date on the status of real estate projects. Since payment plans are linked to project milestones, it is imperative that buyers are able to track the progress of their properties. This guarantees that purchasers won't be required to pay in installments until the predetermined construction milestones have been met. thereby providing this service, the Dubai Land Department protects the interests of buyers throughout the purchasing process and equips them with the knowledge they need to make wise decisions.

For those looking to get into the Dubai real estate market, off-plan properties can seem a tempting investment option. Off-plan properties are advantageous for a number of reasons, including lower costs, more flexible terms for payments, and the possibility of capital gains. As with any investment, do your research and carefully consider all the options before choosing.

Here are some common FAQs that provide essential information and address typical concerns that Off-Plan property buyers and owners might have.

FAQs in Off-Plan Guide

Purchasing off-plan real estate can be risk-free provided you perform thorough research on the developer's standing, performance history, financial stability, and adherence to legal requirements like ESCROW account laws.

Developers are required to deposit buyer payments for off-plan properties into regulated escrow accounts, or escrows. As a result of guaranteeing that their money is secure and utilized exclusively for construction, these accounts offer protection to buyers.

Depending on the developer and the project location, additional costs could include registration fees, service fees, maintenance fees, utility connection fees, and possibly VAT on real estate transactions.

If at all possible, visit the site, speak with the sales team or project managers, and keep an eye on the construction milestones and completion schedule in order to stay informed. You can also get regular updates from the developer.

The sales contract, payment receipts, development payment confirmations, project specifics (such as the master plan and completion schedule), and any other pertinent paperwork requested by the buyer or their legal counsel must all be provided.

Assessing similar properties in the market, taking into account the developer`s and project`s reputation and progress, speaking with real estate agents or valuation specialists, and taking into account the demand for comparable properties in the current market are some of the factors to be considered.

Expenses could include transfer fees that must be paid to the developer upon ownership transfer, administrative costs for preparing the required paperwork, and any penalties or charges that might be included in the sales contract. Real estate agent commissions are normally between two and three percent of the sale price.