Buying an off-plan property in Dubai comes with a lot of perks. The most prominent one is that buyers get to book a property at rates much lower than the market price. For example, housing units in waterfront development projects are very costly in Dubai. However, if the project is still under construction or in the initial stages of development, you can get it at comparatively lower rates.
Having said that, it is important to note that not every investment in the primary (off-plan) market can reap fruitful results for you. There are cases when the projects are delayed, cancelled, or market conditions change. All these factors have an impact on the profitability and prospects of the development.It will give you a fair bit of idea if the developer has stayed true to their claims or not. To ensure that your investment yields the desired results, it is important to ask these questions before booking your unit in such a project:
Is the project registered with DLD?
It is the foremost thing you should take into account even before considering the project. If it is not registered with DLD, do not make this mistake of proceeding further, no matter how lucrative the offer is. You will land yourself in big trouble by buying a unit in such a project. Ask for proof of registration before making any payment. Only book your unit when you are completely satisfied.
When is the escrow account number?
As per the UAE’s Escrow Account Law, it is mandatory for every developer to open an escrow account at the time of launching a new project. It is basically third-party funding in which the buyer(s) transfers the money, which is accessed by the seller/developer. In case the seller doesn’t fulfil their agreement i.e. the project gets cancelled, this account is used to refund the amount to buyers.
This clearly signifies the importance of an escrow account. Therefore, make sure to inquire the developer about this specific account and make your initial deposit in the escrow account only. This account serves the purpose of protecting buyers.
When will the project be completed?
Property developers usually give an estimated time of completion at the time of launching the project. However, it’s not every time that this deadline is met. Numerous factors can result in the delay of the project completion. For example, COVID-19 halted the construction work of many projects. Resultantly, they were delayed, causing great inconvenience to buyers.
Therefore, it’s better that you ask the developer about the estimated completion date beforehand and during the construction stages as well. Check out their previously-owned and handled projects to know whether their projects were delayed or not.
What is the payment plan?
Usually, the payment plan is available on the website of a project. However, it is still recommended to ask the developer about this, as the information on the website may haven’t been updated yet. Furthermore, discussing this matter with the developer directly may get you a more flexible plan.
What are the proposed amenities and facilities?
Again, this information is available on the project or developer’s website. Still, it is advised to talk to the developer about the amenities, facilities and luxuries the project promises to offer to the residents.
New Manufacture (Off Plan) Basics
Whilst demand fluctuates all through the areas that have a tendency to have the easiest undersupply are rife with possibilities for builders and buyers to benefit. Investors and domestic shoppers are capable to buy ‘Off Plan’ residences from the builders even as they are underneath development or even prior to development commencing.
Can I sell my unit before completion?
Most developers allow buyers to sell their off-plan units before the project is fully completed. However, it is only allowed after the project has reached a certain completion level. So, if you intend to sell your unit, it’s better that you inquire whether the developer permits this or not. And if they do, are there any restrictions or limitations pertaining to the same. Getting an answer to this question can save you from future troubles.
Important Factors to Consider Before Buying Off-Plan Property
Apart from getting answers to the aforementioned questions, there are numerous other factors that you should consider before buying a property in the primary market in Dubai. These include:
- The Developer’s Reputation: Take into account how the development firm fared in their previous projects. Were they delayed? Are the buyers are satisfied with the end product? Getting this information is important as it will help you make an informed decision.
- Location: It is one of the important factors to consider when buying any property, be it ready or off-plan. Make sure the area is easily accessible. It has metro stations located nearby. Furthermore, it should also lie close to facilities such as hospitals, supermarkets, entertainment venues, schools etc.
- Completion Status: Do make a point to check the completion status before buying an off-plan property. Visit the site if possible. It will give you a fair bit of idea if the developer has stayed true to their claims or not.
It goes without saying that investing in a property market is a huge decision. Therefore, it should be done after thorough deliberation. Asking the aforementioned questions and getting answers will help you in making an informed decision. But if you are new to Dubai and it is your first time buying a property, it’s advised to hire the services of an expert.
Hiring a professional agent comes with numerous perks. They can guide you about the prospects of a project. Apart from that, they can also tell you about newer residential developments such as Stella Maris Tower in Dubai Marina that are expected to gain more popularity in the years to come. The reason why we have mentioned the Stella Maris project is that it is the last waterfront development in the most popular Dubai Marina, and is a perfect choice if you are looking for an off-plan property in Dubai.