Introduction
Undoubtedly, Dubai is home to thriving off-plan property investment opportunities. Primarily this is due to a strong, expanding, and progressive real estate market. It’s a secure and stable market and thus, investors have confidence and trust while investing.
Dubai remains an open market for its investors from all quarters. This makes it incredibly practical and convenient to buy off-plan properties in Dubai. People with little savings in their pockets can opt for this. It is a perfect way to enter the property market at affordable rates. Rather, it is one of the easiest and simple ways to own a property in Dubai.
What is off-plan property?
An off-plan property refers to an under-construction or developing property. Usually, it is directly purchased from the renowned and well-known property developer. It is a property is in the early stages of development and construction is under progress.
They are purchased on a contract. It is clearly stated in the agreement about the completion of the property in the future. Normally, such properties are available at cheaper rates than the market value. Once the project is finished, a skyrocketing rise in its worth is expected. A wait for it will appreciate the value.
Usually, off-plan property projects are accompanied by brilliant infrastructure, amenities, parks, and much more. Such investments that require time to mature are often associated with a higher rate of returns. Profits can be earned from it.
3 main categories of off-plan property are available in Dubai. Apartments, villas, and townhouses are the 3 types. All of the 3 categories have various characteristics along with potential benefits. Anyone can be the best option for you. Well, it all depends upon your specifications and investment objectives.
Legal procedure to purchase off-plan property in Dubai
There is a set of laws, regulations, and rules that governs real estate transactions. The steps are vital for the security of your investment. It is a lucrative option for investment in Dubai. Dubai land Department governs the off-plan property transactions in Dubai.
The overseas residents require the passport copy, Emirates ID copy, and visa copy. With it, they also need to pin up the No objection certificate from the employer (NOC). While, the UAE residents need to attach the Emirates ID copy.
Some other documents required are the following:
- Title deed
- Purchase agreement
- Mortgage contract (if needed, it is only from UAE banks)
- Occupancy certificate
- Unified code (for UAE nationals)
- National ID (for GCC nationals)
- Insurance policy (not mandatory)
- Reservation form
Following this, once you have handed over the complete set of documents you can reserve the unit as per your desires.
Process of payment
In Dubai, the property is purchased by paying a 10% or 20% down payment. For this SPA- a sales purchase agreement is signed between the two parties. The initial deposit is submitted along with the relevant documents.
It is the perfect way to save money and give payments in various installments. For most people giving money altogether is quite challenging. This has made it a whole easier.
Much like any other property, buying the off-plan property also has associated fees with it. There is a property registration fee of 4% which is payable to the Dubai land Department. It is immediately paid to DLD at the time of booking without any delays. The title registration fee is paid within 30 days’ time period. On the contrary, failure to make the payment will result in penalties and charges by DLS according to the rules and regulations.
Following the initial payment
Once DLD registration is paid, the property purchase will be registered into the system. You will get a notification from DLD.
In the future, you need to make payments according to the given plan. The contract narrates the terms of the payment. The booking deposits that are submitted are non-refundable.
Moreover, you can easily re-sell your property as per your need. Once it is submitted with DLD it can be sold out anytime to anyone based on the rules and regulations i.e. 50% of SPA value. For this, you can contact the CRM department which deals with it.
Final words
Once the ownership is locked at the time of booking, no alterations are entertained whatsoever. It is important to note that the property registration can only take place via the developer’s office direct applications to the DLD will be denied and not entertained.
In particular, there are no restrictions on who can buy the off-plan property. Anyone is permitted to buy and own a property anywhere in Dubai
RERA is a regulatory body that takes care of the project. They take plenty of measures that should be met by the developer. We as developers fully comply with it. In addition, we make sure that off-plan project is completed on time.
They also make sure that the developer owns 100% of the land belonging to the project.