Off Plan Property Investment

Off plan property is referred a property that is under construction where the Developer is selling it with a payment plan. Buying off plan property means that you are paying for the property before it is completed with a payment plan schedule. Some Projects even offer post-handover plans to make it easy for investors to pay in installments and get returns from it as well.

It all depends on the options and unique selling points the Developer is offering.

Investing with the right developer, area and agent makes a big difference to the returns you are going to make. So, make sure to work with the area and developer experts . Contact us to get more insight.

Factors you need to check before investing in off plan:

• Developer’s background and quality of previous projects.
• Price comparison with market
• Payment plan structure, whether it is easy or challenging. Post-handovers are a plus but be careful of the sale price, many developers charge more on the property with post-handover plan leaving investors with no chance of return on investment.
• Ask yourself “can I sell the property once completed for the price I am expecting in the area?”. It happens that some investors purchase property but without a proper exit strategy.

• Consult with our top expert agents on the best projects.
• Book the available selected unit by providing your documents and booking amount or submit an Expression of interest if the project is not yet launched.
• Sign Sales and Purchase Agreement (SPA) and get your Pre-title deed (Oqood)
• Pay as per the payment plan schedule and avoid any late payment penalty (if any).
• At the Handover, Get the keys and start Snagging for any defects in the development. Your Agent will help you out here.
• Get the final ‘Title Deed’

Any developer to sell off plan will be required to get approval from Dubai Land Department first where they will be assigned an Escrow account for the project. Avoid any project that does not have an Escrow account until it does before booking a unit.

Dubai Land Department has an app called ‘Dubai Rest App’, Verify the project by searching the project name or the project number provided by your agent or direct developer. You can also see the construction progress of the project in the App.

There is no thumb rule of re-selling off plan property, so sell any time you get an offer you desire.

It is important to keep in mind that it is very challenging to find a project that would generate good enough returns before the handover. So, to sell your purchased off-plan property with the highest possible returns then it is advisable to wait at least till the handover.

Usually, the Sales offer that you will receive from the developer will have all the cost of purchasing the unit, but if not then expect the following:

• DLD 4% of the purchase price as transfer fees
• Annual service charges - different for each project so make sure to check this with the developer.
• Other Charges (Admin Fees, Oqood (pre-title deed), title deed, and more) up to 6k AED

Note: Buyers do not pay commission to an agency when buying off-plan properties.