Investing in Dubai’s Off-Plan Properties? You must know these key aspects first
The Dubai real estate market has always been one of the most popular investment choices for foreign investors. With the new market trends, investing in Dubai real estate is easier and highly lucrative, especially for off-plan properties in Dubai.
As you may already know, off-plan properties are properties that are under construction. Here, the developer signs a contract to finish the building and prepare it by the stipulated date.
Besides lower prices and flexible payment plans, off-plan property purchase allows you to enjoy capital appreciation when it's ready for occupation. In addition, Dubai has witnessed the development of several modern and luxurious properties which exceed international standards.
According to the Khaleej Times, the UAE registered 90,881 real estate deals setting a new historical record high after 81,182 transactions. This report also showed that off-plan real estate investment was subject to a 92.5% spike.
In other words, the Dubai property market opens a plethora of opportunities and benefits for investing in off-plan projects in Dubai.
Let us look at it in some detail.
Property Regulations In Dubai
One of the primary concerns of purchasing an off-plan property in Dubai is fraud or delays in completion. However, the Dubai Land Department (DLD) has adopted strict measures to protect investors from such risks.
Through the DLD’s official website offering the ‘Project Tracking’ service, a buyer can monitor the progress of a project. It is vital to ensure that the project’s status follows the payment schedule. Once DLD confirms that it has completed a certain percentage, as promised earlier, you have to make the payment. On the contrary, you are not under obligation to make the payment if you do not receive a confirmation from the DLD.
What’s more? A subsidiary of the DLD, namely the Dubai Real Estate Regulatory Agency (RERA), supervises that these rules are followed. Failing to abide by the policies will impose penalties on developers who violate obligations.
Now, let us go through some of the other things that you need to learn before investing in off-plan properties in Dubai.