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Tips before buying “off-plan property” in Dubai

Walid Al Zarooni

25 April 2022

There is no doubt that it is a very good time to invest in Dubai real estate, to take advantage of the rising wave in prices, and to achieve good returns, because every delay represents a loss for hesitant investors.

However, there are several tips that help to buy "off-plan property" safely in the Emirate of Dubai, amid strong market demand, and great optimism from investors about the sector's future during the coming period.

Here, several things must be adhered to, so that the investor achieves a successful purchase of a property on the map, and is not exposed to a loss or fraud.

This includes, for example, the need to ensure that the real estate broker is accredited and has a legal license, and this can be known through the "Dubai Rest" application, or requesting a copy of the broker's card issued by the Land Department.

The real estate developer’s reputation must also be checked, by looking at his previous work, the extent of his commitment to the project’s delivery dates, and the quality of finishes, as well as making sure that the project is approved or not, and this can be verified through the Land Department’s website.

Also making sure that all payments are made into the project's escrow account.

The investor must review the purchase contract and read all the clauses contained therein, so that there are no unfair conditions against the customer and in the interest of the developer, and to ensure the dates of receipt and payment of installments.

The investor or the dealer must take a receipt of the paid payments to preserve his right.

The (real estate registration) service in Dubai provides many options to facilitate the registration process, and allows submitting an application to register the sale, as it was created in order to register the total or partial sale process between all parties to the contract, i.e. the seller and the buyer, or their representatives, provided that the Legally registered to purchase real estate, land, ready-made real estate unit, or real estate still under construction.

We invite dealers to make sure of their financial ability before making the purchase, because failure to pay the payments on time may expose you to fines, with sufficient liquidity to help you pay the payments on time.

You must be careful and not be “deceived” by the tempting real estate offers that are being promoted, because they often contradict reality, and are merely to attract customers.

The difference between investing in off-plan real estate in Dubai and ready-made real estate is clear, as the process of material returns begins directly when buying and renting a property, or selling it at a higher price. Or pay a certain percentage of its price.

Among the most encouraging things to buy a property off-plan is the low price compared to ready-made properties, in addition to the property's value that can rise in the future upon completion of the project. The projects that are still on-plan and under construction in Dubai are very popular by real estate buyers and investors. Therefore, Dubai is a destination for real estate buyers and investors to spend their money in this sector, due to the emirate's growing economy, strong infrastructure, and lucrative financial returns.

The real estate sector in the UAE is expected to maintain investment momentum and strong sales during 2022. There is no doubt that 2021 was an exceptional year for the real estate sector in most emirates of the country, led by Dubai, which recorded the highest value of sales in its history, with a total value of 300 billion dirhams.

It is expected that the real estate sector indices will reflect positively on the performance in the current year.

* Chairman of the Board of Directors of "W Capital" real estate brokerage

To read the previous articles of the writer please click on its name.