Factors To Consider Before Buying Off-Plan Property In Dubai | What To Know?

Dubai's off-plan market has seen a momentum change and there is no sign of stopping down! The city's strengthening economy, investment-friendly regulations, and tax-free policies all together have made it an ideal investment choice. Owing a property in such a vibrant city like Dubai has become a goal for people worldwide and not just Emiratis. And, the popularity of off-plan projects has grown significantly, thanks to its affordability, flexibility, and high returns.

Now, Dubai is home to some of the most renowned, and luxurious developers, who’re enticing the global market with discounts and flexible payment plans. They are shaping the city’s skyscrapers with some of the best developments. In fact, there are endless communities that one can pick from.

Like beachfront, pet-friendly, golfing, family-friendly community options, and much more. But with all of that, the off-plan market comes with both, risks and rewards, therefore careful evaluation is a necessity! When investing your money in the same, it is crucial to look out for multiple aspects that direct the results of these investments.

What to Know When Buying an Off-Plan Property in Dubai?

Dubai is home to a unique range of properties, from villas, townhouses, and apartments, to duplexes and more. Undoubtedly, the off-plan property has to be a lucrative investment option and the reasons are multiple! However, before you step into it, let's look out for the aspect of purchasing a property like it.

Market Dynamics

As an investor, you want your property value to increase, so that you generate a better ROI. This depends upon the shift in market dynamics, and it is important to consider it. Shift in the market will impact the prices of the properties, and it can affect either positively or negatively.

If the market shifts downwards, the property value declines, and investors won’t be able to generate better ROI. Similarly, if the market shift upwards, that's the best time to sell a property and gain the best ROI. Therefore, one needs to invest in a market that has a strong future potential!

Know the Process

When buying a property there are certain documentation that you have to go through as a buyer. They may need your passport copy, Emirates ID, and even a reservation form. There will be a Sales and Purchase Agreement (SPA) that both parties have to sign and for reservation, the investor has to pay a specific fee too. All of this requires a licensed realtor's advice to go through the documentation, with ease. When buying a property in Dubai, you need to hire a broker who's registered with DLD.

Choose the Right Developer

This city is overloaded with developers, ranging from mid-range to affordable, luxurious, and boutique developers. Therefore, you need to be careful when it comes to selecting the right developer. It is important to do your study and note down their track record, financial position, previous projects, their success, client testimony, and so on. Get hold of their work quality, as well as their delivery timeframe, which is important. Off-plan properties are not like ready ones, they are still under construction, so you cannot take risks on that.

Research the Location

Dubai is huge, and there are so many communities located at every corner of the city. Some communities are well connected to the metro and public transportation. While there are communities that can only be accessed through cars and cabs. In that case, you need to be careful when picking a location to live with your family. The areas that are popular in Dubai with expensive homes include Downtown, Palm Jumeirah, and even Bluewaters. While there are affordable areas like Emaar South, JVC, and the list goes on.

With connectivity comes the basic necessities that your property should be surrounded with. Is it near a grocery store? What about schools, hospitals, malls, and shopping centers? Is it close to your workplace, if not can you easily access your workplace? Only if you find this project close to the conveniences of life, then agree and move ahead. You need to personally visit the area to check what your life will be like, here.

The Advantages of Buying Off-plan Properties

Save Money

The purchase price of an off-plan property is always on the lowest side, which makes it a great deal to pick. It also helps the buyer to choose an apartment that is best, in a particular development. You can pick your favorite floor, with a balcony facing a specific view, and different layouts and sizes too. This way, you gain the maximum chance of getting more returns on investment.

Sell Before Completion

Nowadays, there are many investors who sell an off-plan property just before its completion. This is based on the assumption that the market is performing well and that it can generate good returns. This has proved for many owners to get a considerable amount of profit for the same.

Lower Up-Front Costs

Upfront costs in off-plan properties are certainly always lower. This is decided by the developer that fixes a certain down payment amount! For example, there are developers in Dubai that require owners to pay a 5% down payment. And, later, monthly there will be a specific amount to pay. This doesn’t seem to be a financial load, and it can be paid time by time, systematically.

Brand New Investment

We humans love something that is new, and fresh. Similarly, when you buy a ready property, you know that it is already been used by someone. But, when you buy a new property, it feels belonged to you, and you set to build all fresh memories in it. You design, décor, color, and add feelings to it, the way you like. You can add your favorite amenities, technology, and feature, to customize your home, your way.

Get Expert Advice

You cannot miss your chance of consulting a professional when you purchase a property! It may not be legally enforced, but a necessity if you want to make a smart investment deal for yourself. Buying an off-plan property requires you to go through legal challenges, which may seem too complicated.

This kind of property has various advantages, due to its reduced pricing, payment options, capital gains, and more. But, before you make any decision, you need to look out for a smart investment plan. Do your homework, and carefully examine developers, locations, and properties.