According to reports by Property Finder, Bayut, and two real estate experts

The developer's reputation, "return" and payment plans...important determinants before buying "off-plan"

The return on investment varies from place to place.

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Two real estate agents and two consulting companies presented a number of tips and determinants that the real estate investor should consider when buying an “off-plan” property, most notably the reputation of the real estate developer, the investment return, the offered payment plans, and the percentage of completion.

"Property Finder"

A report by Property Finder confirmed that the reputation of the real estate developer and the return on investment are among the most important things that a real estate investor should take into account when buying an "off-plan" property.

He explained that it is very easy in Dubai to know the resume of any real estate developer, pointing out that the investor has many means and multiple tools, through which he can check the reputation of the real estate developer, his record in construction, delivery, and prices.

The report indicated that the investment return is one of the important factors for the real estate investor, indicating that it is variable from one place to another, and from one city to another.

The report added that the extent of the real estate developer's ability to deliver the property, according to the timelines he set before starting the construction process, is an important determinant when choosing the developer, and buying a housing unit from him “on the map”, as the narrower the time period between the announced date and the date of delivery, the more Real estate developer reliability.

The report also indicated that the payment plans offered by the developer, and their suitability for the real estate investor, are important determinants when buying an “off-plan” property. City center, availability of public transportation.

The report emphasized choosing the property whose price is commensurate with the investor's budget, and knowing the services that the developer will provide later in the after-sales stage.

"House" report

In turn, a report by the real estate consultancy Bayut indicated the importance of knowing the real estate developer's credibility before the purchase process, by tracking his previous achievements, and committing to delivering the residential project on time.

The report advised to avoid buying real estate in periods of recession in the real estate market, as this may lead in the future, or upon completion of the construction of the property, to the price paid more than the actual value of the property.

The Bayut report stressed the importance of paying attention to the decorations of the property and the materials used in its construction, compared to what is published in brochures or pictures, pointing out that these problems can be avoided by referring to the previous achievements of the real estate developer.

Completion rate

For his part, CEO of Standard Real Estate Management, Abdul Karim Al Mulla, pointed to the main reasons that encourage real estate investors to buy a property off-plan, most notably its low price and flexible payment plans, in addition to the property's value that can rise in the future when the project is completed.

Al-Mulla advised against buying a property that has not yet been built, or does not already exist, and said: “At least, there must be a completion rate of the project of no less than 10%, in addition to the necessity of inspecting the property, making sure of its area, and that it matches the area on the papers. official, reviewing the drawing, and matching it with implementation on the ground.

Search and compare

In the same context, the real estate expert, Muhammad Al Ali, advised against rushing to complete the purchase process, searching and comparing real estate, and choosing the most appropriate among the real estate offered in the market.

Al Ali agreed, in any case, not to buy a property that has not yet been built or does not already exist, as there must be a completion rate of the project not less than 10%.

Al Ali also stressed the importance of inspecting the property, ensuring its area, matching it with what is in the official papers, reviewing the drawing and matching it with implementation on the ground, in addition to making sure that there are no problems with building licenses in terms of their issuance by the competent authority.

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