The real property off-plan in Dubai is a profitable investment format. Properties under development are offered by both public and private developers. The main advantage of their purchase is a lower price compared to the finished housing stock. All that remains to explore how safe such transactions are and what are their features.
What you need to know about overseas off-plan real property
The developer gets the right to announce the start of sales only if there is a special account on which there is an amount of at least 20% of the project cost. It acts as a bank guarantor. The start of sales can be opened no earlier than 10% of the construction is completed. The detailed information about the process of buying properties off-plan and about the latest offers in Dubai can be found in the source https://emirates.estate/.
Is it worth investing in apartments and villas under construction?
Given the increased activity of the UAE market, which has been observed since the end of 2020, investments in the housing stock remain top requested. At the same time, facilities under construction are no less popular than those already put into operation. Investments in off-plan is worthwhile for several reasons:
- the possibility to save in purchase;
- capitalization of the cost when setting the housing into operation.
Given that you can resell apartments at any time even before the housing commissioning date and at a price exceeding the expenditures in the purchase, the profitability of investments is obvious.
What documents are required to buy property off-plan in Dubai
The sales market is controlled by the state. It is quite easy to choose a developer, it is enough to get acquainted with the existing business reputation, as well as to check the availability of the required package of documents, which the developer must have. They include:
- ownership right to the land plot on which construction is being carried out;
- permission from the Dubai Land Department and registration with RERA, the agency that controls the activity of developers;
- the account to which funds are received from buyers and from which the project is financed.
In the UAE, there are clear rules that the contractor must comply with. Therefore, construction work can only be carried out on a site that is wholly owned.
How to buy apartments in a residential complex under construction safely
It is important to consider offers from developers and licensed real estate agencies. In this case, both the seller and the intermediate agent taking part bear full responsibility for the compliance of the transaction. Buyers are most concerned about the risk of “freezing” the construction period or disruption of construction deadlines. The state has designed a scheme to prevent these problems. If the developer is unable to complete the project on his own, then the authorities choose another developer or return the funds deposited to the escrow account to the buyer. Given that the future owner pays only part of the amount, making full payment only by the housing commissioning time, the risks of losing finances are reduced to a minimum.