With its immense determination, Dubai has established itself as a firm global leader in terms of innovation. As a hyper-connected business hub connecting the West and East, it offers great career opportunities to many talented graduates from across the world. Thus, the city has the highest rental yield of many other countries. As a result, most people are now investing in Dubai’s real estate, making it the world’s prime property hotspot. Therefore, with increasing demand, property prices have become a major hindrance for investors. And as a consequence, investors are now looking for buying off-plan property in Dubai because it is more affordable and provides a strong ROI (Return on Investment).
Run down to find out the best tips for buying off-plan property in Dubai!
Tips for Buying off-plan Property in Dubai
The purchase of off-plan properties has gained popularity with both experienced investors and first-time buyers in Dubai. Thus, we have stated some key points here that one must follow while investing in a property that is under construction.
- Before You Invest, Consult
The foremost thing for buyers who wish to invest in an off-plan unit is to seek the best advice from an accomplished real estate consultancy that is certified by the regulators. An expert’s advice is important to get complete information about the specifications of the property that you have agreed upon. In general, approaching a real estate consultancy is an essential step for purchasers to make a well-informed decision, especially in a market with so many options like UAE real estate market.
- Check the Developer’s Reputation
of their prior projects and understand how well they have operated them. Check if the developer stuck to his words and delivered the project on time. Did the unit have all the promised facilities and amenities? Check the present market worth of those projects? Answers to these questions are a great help in making a good deal.
- Estimate the ROI
Return on investment is a major aspect that a buyer must keep in mind while investing in an off-plan property. Although ROI varies as per the market conditions, Dubai is amongst the cities with the highest real estate returns ranging from 7% to 9%.
- Review the Project
Similar to the developer, you must also go through each and every detail of the off-plan project you are investing in. If you wish to buy an apartment, we suggest you invest in a cluster of buildings rather than a single unit. The reason behind this suggestion is that the developers often come up with the latest amenities that draw more buyers. This enhances your chance to earn a high return on your investment.
Considering the amenities, you must be aware, beforehand, of what your off-plan property comes with. Keep in mind that not all the residential units in Dubai provide play areas, swimming pools, gyms and so forth. The availability of these facilities significantly impacts the ROI, so you must know in advance which facilities your developer will be providing in the unit.
- The Quality of the Property
The quality of the unit is of great significance when buying off-plan property in Dubai. The buyer must pay close attention to the property’s construction materials and finishings. The quality must not deviate from what you see in the images or brochures and what you hear from real estate agents. You can clear these doubts by visiting the ongoing projects and the prior projects of the same developer.
- Discuss the Payment Plan
Before you finalize, always discuss the off-plan property deal with the developer or the agent you have hired. You must always discuss the payment plan with the developer. Understand the payment terms in detail and review the conditions of what will happen if you fail to pay the instalment on time because of any unforeseen scenario. And do not forget to ask about the exit plan from the developer.
You can also ask the developer for the project-based plan in which you are allowed to pay the instalments as per the progression of the project.
- Read the whole Contract Carefully
In the end, read the property contract carefully while buying off-plan property in Dubai. Be sure that there are no hidden terms and conditions that might limit your ability to sell the property in the future. Always ask the developer or agent to brief you on the service charges and other overheads that are associated with the project or given in the agreement.
On a Final Note
off-plan properties come with various benefits, from low-cost purchase and repair cost savings to depreciation benefits and potential capital gains. Buying an off-plan property makes you a first-time buyer of that unit, which you can design accordingly while it’s still under construction. Although it comes with several benefits, to secure your investment, you must always go through the buying tips for off-plan property in Dubai via a proficient realtor.
