Unbuilt property acquired directly from a developer is referred to as “off-plan” property. It is a property that has not yet been built or, in some cases, is only beginning to be built.
In order to purchase this type of property, buyers rely on brochures and other marketing materials to learn about the project and the specific property they are buying. Typically, a 10–20% down payment and the SPA are required to complete a transaction (Sales Purchase Agreement). The remaining payments can and do vary depending on the developer, but they are typically related to construction.
Advantages of buying off-plan property in Dubai
Unlike many countries around the world, the Dubai property market is open to all. There are no limits on who may purchase and own a home in any of Dubai’s freehold neighborhoods, whether they are citizens of the UK or India.
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RERA has established a number of requirements that the developer must meet in order to assist ensure that an off-plan project is finished. One of them mandates that the developer must be the sole owner of the project’s land. Additionally, the developer must either provide a 20% bank guarantee down payment, place 20% in an escrow account, or finish 20% of the building before selling off-plan. In addition to the aforementioned procedures, RERA asks contractors to provide a 10% performance guarantee.
Along with these precautions, it’s crucial that consumers conduct their own research and investigate the developers they’re thinking of purchasing from. We advise researching into the reputation and track record of the developer.
To make the Dubai market a safe and secure location to invest, many safeguards have been put in place. One of these regulations directly affects buyers who want to resell an off-the-plan house before it is finished. Emaar Properties, the largest developer in Dubai, now demands that owners pay up to 40% of their off-plan home before it can be transferred to a new owner. It’s crucial to check with each developer because this 40% percentage might vary from one developer to the next.
Selling an off-the-plan property is quite similar to selling a ready property after the minimal payment criteria have been met. The price and tesellerse agreed upon by the buyers and contracts,contracts afor ansNOC,ed, and a NOC application is made. The new buyer registers with the developer and eventually assumes responsibility for any outstanding payments when the deal is finalized. It is alsbelief,portant to note that, contrary to common opintransfer fee,DLD Transfer Fee isfact that responsibility of the new buyer, even if the first buyer has already paid it.
In Dubai, there are several off-plan property types to choose from. These can be divided into three groups: flats, villas, and townhouses. Each of them possesses unique qualities, as well as advantages and possible drawbacks. Which alternative is the best will solely depend on the buyer’s unique needs, wants, and financial objectives.
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