For many, the idea of owning an expensive asset in a foreign country is daunting. Arecent Property Finder research survey found that 47 per cent of those polled who rent wish to continue to do so and are not interested in purchasing a home. A smaller percentage are either actively looking to buy or are […]
An independent report published earlier this year and commissioned by the Dubai government said that Expo 2020 will contribute more than Dh122.6 billion to the country’s economy by 2031. The report, by the consultancy EY, also stated that at its peak, Expo 2020 will generate business equivalent to 1.5 per cent of the UAE’s GDP. […]
Before we go further, let us first define “what is an off-plan property?” An off-plan property is a property or development before a structure has been constructed upon it or simply an under-construction property. It is usually marketed to investors and end-users before or while the construction is ongoing and to be paid with such financial terms.Off-plan properties in Dubai are widely and easily available, you can choose from which type of property you prefer - affordable or luxury. Also, the city hosts a plethora of off-plan developments strategically located across the city.
You can sell your off plan property after you pay a specific percent of the property value based on your SPA with the property developer. Usually, it is after you pay 30-40% of the property value.Keep in mind that your off plan property in Dubai may have fierce competition in case the developer still has availability since developers run generous property offers these days.If you decide to sell, then check the current market prices of your property, then give it to property experts to sell it for you. -- Sometimes it is worth paying some commission to the property broker to push your property in the real estate market.After you get the right buyer, you go to the developer office to obtain NOC from the developer that costs around 5,000 AED which is usually paid by the buyer. After that, you go to the trustee office with the buyer and agent. There you get you selling price of your shares in the property as a manager cheque from the buyer, and the buyer usually pays the transfer fees that is 5,000 AED in case of the property price over 500,000 AED and 3,500 AED in case the property value below 500,000. The buyer also pays 4% of the total property value as registration fees to Dubai Land Department.
Fortunately for investors and end-users, Dubai is home to hundreds of affordable and luxury off-plan projects. These developments are usually located across the city’s most prestigious destinations, close to famous landmarks, eccentric man-made islands, nature-inspired communities, and cosmopolitan living right in the centre of Dubai.The city has a lot of prime locations with off-plan projects ideal for your lifestyle needs. You can choose from beachfront communities at Bluewaters Island, Dubai Harbour, Jumeirah Bay Island, and Palm Jumeirah for example. Live on a tranquil environment setup at Damac Hills, Emaar South, Dubai Hills Estate, and Al Barari. Or if you prefer a city lifestyle, urban off-plan projects are available in Business Bay, Downtown Dubai, and Dubai Marina just to name a few.
Once you have identified which location and type of lifestyle you require, being aware of its benefits in terms of property value and return on investments is a must. The best thing about purchasing an off-plan property in Dubai is that it offers quick asset value appreciation especially those projects located in prime areas.If you are an investor, taking advantage of today’s market is a wise decision. By purchasing an off-plan now and wait for the right time to exit or resale your property especially when there is a good opportunity in the market, then you can definitely sell it at a much higher price.Furthermore, buying an off-plan project do not require a large amount of money as most off-plan investments in Dubai comes with attractive payment terms and deals.
Property developers in Dubai continuously create attractive payment terms to lure more and more investors. In fact, you do not need to have a large amount of money to purchase an off-plan property.See payment terms of these projects (e.g. pay just 10% and move in, 50% during construction and 50% post-handover, etc.) and identify how much is for the initial payment as well as the other fees such as government fees, service change, and VAT.
Fees are applied when purchasing an off-plan property in Dubai. Buyers and investors need to make a payment for the following fees such as Dubai Land Department (DLD) fee (4% of the total amount of the property), service charge (e.g. trustee fee), and the recent value-added tax (VAT). These fees are applicable to both UAE and foreign nationals.However, these charges are sometimes waived upon the intent of the developer or if there are ongoing promotion and deal to a particular off-plan project.
Any person of any nationality, whether based overseas or a resident can purchase or own in any freehold properties in Dubai. Buyers and investors are not required to hold any type of residency or similar permit in order to buy an off-plan property in Dubai.Popular freehold areas in Dubai include Dubai Marina, Downtown Dubai, Jumeirah Village Circle (JVC), International City, and Palm Jumeirah. These locations are ideal to both new and existing property buyers.
Buying an off-plan property allows investors to acquire a unit at its lowest price compared to ready properties. For first time buyers, off-plan properties for sale in Dubai offers a great opportunity in terms of return on investments (ROI), income-producing assets (for holiday home), and market value appreciation.These type of properties offers a number of incentives and benefits allowing first-time buyers to enter today’s Dubai real estate market at a more affordable price. Also, real estate developers offer attractive payment terms, making it easier for first-time buyers to avail off-plan properties in Dubai.If you are looking for the right property investment or a home in the future, you can browse on the list of off-plan properties in Dubai or simply get in touch with us to find out more information about these projects.
The maximum loan during construction period is 50% and off-plan properties are typically cheaper than ready properties. When you pay 50% of the purchase price, it is preapproved at the time of application and is guaranteed to be paid off at completion, regardless of the individual’s financial situation. After paying 50% for an off-plan property, you can take 25% to 30% cash out. If the property during construction has increased in value, you can borrow 75% to 80% of the property value and withdraw more cash out. This process requires property revaluation and mortgage reapplication. However, if you’re content with the numbers and you’d like to receive cash at a low mortgage rate, it’s also another option. It is recommended to choose a plan that you are comfortable and committed and will give you the freedom to save up or exploring other investments when the property is completed.