Foreigners and expat’s biggest goal is to Buy home in Dubai. However, the dream cannot become a reality for everyone due to the high property price. In such circumstances, the only way to remain is to invest in a property that is under construction or the property that is yet to build, but the plan is ready.
Dubai is a hub of foreign investment. Every investor’s dream is to invest in Dubai real estate. Making Dubai a dream place to invest, there are many reasons that support why you should invest in Dubai off plan projects. First, Dubai is famous due to its infrastructure. Furthermore, the stable political and economic conditions are favorable grounds that attract investors.
Over the last few years, Dubai off plan property investment has captured the interest of foreign investors. In simple terms, Off plan properties for sale mean purchasing an under construction property directly from the developer. In addition, buying a property directly from the developer means you are the first owner. Therefore, you will get the lowest price for the property.
Underneath, we have gathered the helpful tips to invest in Dubai off plan projects. Also, we have mentioned the risks and perks of buying an off-plan property.
Helpful Tips to Invest in Dubai Off Plan Projects
Research the Developer
If you wish to invest in some worthy Dubai property. First, you must have complete knowledge of the developer. It is indispensable when you are buying off plan Dubai properties. The best method to carry out details about the developer is through past projects. You may also get in touch with the buyers as they can provide you with a clear picture of the developer.
Buyers are the prime source if you want to know about the developer. The authenticity of the developer can be measured by the information you receive from the buyers. Consider both negative and positive reviews to help you make a fine decision.
Below are the two vital requirements discussed with the buyers.
- Track record of past projects.
- Quality of the projects.
Beware of the drawbacks you might experience while investing in off plan projects. The most prevalent issue faced by the buyers is that projects may defer. To minimize the risk, the better way is to do thorough research about the developer.
According to reports, an estimated 50% of projects in the UAE are on delay. However, few projects were called off in some cases due to unwanted circumstances. So before you invest in Dubai property, you must be prepared for any extra delay.
Assess your Financial Condition
The best feature about investing in Dubai off plan projects is the financial security. In most projects, around 80% of the total payment has to be done. At the same time, the rest of the payment will not be released once the project is completed.
The most followed payment practice that Dubai follows is 50/50. In this case, half of the payment is given at the starting phase. Then, the remaining payment is released when the project reaches its final stage. This method provides peace of mind and financial safety as the payment needs to be done in stages.
Understand the Prices
The most common mistake that first time buyers often make is they are more concerned about the asking price and payment plan only. In a rush to close the deal, the buyers make such mistakes. This is the mistake you need to address and avoid any cost. Before purchasing the Off plan apartments for sale Dubai know the price per square foot. This will provide you with a better understanding of the real price of the property.
Therefore it is critical to concentrate on understanding the price. If you miscalculate understanding the price. this may lead to buying an off-plan property for the same price as the ready property. So, use discretion and find out exactly what you’re paying for.
Check the Legitimacy of the Project
The most preeminently step when purchasing off plan project is to inspect and study the project’s credibility. It is also the safest way to move forward if you wish your investment wouldn’t go down the drain. According to property advertising law, only authorized registered developers can advertise the projects. Still, for your satisfaction, you can visit RERA portal to find all the registered projects.
Moreover, don’t be impressed by the creative advertising posters. This is where most first time buyers get deceived and invest in such a Dubai real estate that is not the ideal option. As payment is concerned, use escrow account. Ensure you do not make payments in any other account than the escrow account.
Know About the Location
The key aspect that can take your investment to the next level is the location. Location is significant to consider when investing in Real estate in Dubai. Thus, it will directly influence your standard of living if you Buy house Dubai for living. Also, location will also determine how much profit you will have if you sell or rent it out.
Before investing, you should do everything you can so you get the best return. Don’t just take the developer’s word for it. Make a point of visiting and inspecting it in person. To Buy property in Dubai, you must inspect the area around the property. The best suggestion is to purchase a property in a well established community if you want high returns on the investment.
Comparatively, investing in non-established areas, you cannot earn high returns. The entertainment places around the property can raise the demand for the property—for instance, amusement parks, educational institutes, and supermarkets.
Hire Real Estate Agents in Dubai
Not many people will advise you to get in touch with real estate agents as you will need to pay a fee for their service. However, directly buying an Off plan townhouse Dubai without the agent’s assistance may get you in a challenging situation.
You can enjoy various benefits when you include a real estate agent during the process. Firstly, the agent has sufficient knowledge about the property. Therefore, developer will not disclose the setbacks and downside of the property. Nevertheless, if you have a real estate agent working with you, he will provide you with the best assistance.
Real Estate Agents in Dubai
If you are looking to get in touch with a professional real estate company in Dubai, contact Time homes real estate. Currently, there are hundreds of expert agents working with them. Moreover, with a sound knowledge of price shifts and upcoming trends, they can surely suggest you better when it comes to selecting the off-plan property.
Scrutinise the Project
Remember, you are not the developer, but you still need to inspect the property from different aspects. Carrying out the details is significant when selecting an off plan property. For instance, while purchasing Off plan apartments for sale in Dubai, your priority must be complex buildings.
You should buy a property in the complex building. Because the amenities and services attract more buyers. Hence, this increases your chances of earning a high ROI.
There are kinds of facilities that can feature at your property. For example, gym, children’s play area, swimming pool. Before finalizing the deal, you make sure that these facilities exist in the off plan project as it greatly impacts the ROI
Discuss Payment Plan in Detail
Having in depth knowledge of payment is crucial before finalizing your off-plan property. To discuss the payment plan in detail, you must arrange two or more meetings with the developer. Also, make sure to ask all the questions you have in your mind regarding the payment process. In addition, don’t forget to ask what will happen if there is any delay in payment. Ask about the exit plan as well.
Read the Contract Thoroughly
Before finalizing the contract, you must go through each point. Once you have signed the contract means, there is no way back. So make sure that are no concealed terms and conditions in the contract. You can also turn to Real estate agents in Dubai as they can assist you in a better manner. Also, be aware of any service fees or other project-related costs specified in the contract.
Buying Dubai off plan projects allows foreigners and residents to Buy property in Dubai at a reasonable budget. However, such kind of projects takes years to complete. It means you have to wait for a longer period to get the ownership.
Overall off-plan property is quite beneficial, especially when looking for an economical option. Furthermore, investing in Dubai is a worthy investment as it is one of the escalating economies in the world. Thus make sure to follow all the Helpful Tips to Invest in Dubai Off plan projects mentioned above.