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Got a plan to buy off-plan?

20.05.2018
Got a plan to buy off-plan?

Buying a home under construction is always risky. But in Dubai, the risks are kept to a minimum. Read more to ensure you’ve considered everything before going to the developer’s sales office.

Regardless of whether you are planning an investment or you want to buy an affordable home for you family, Dubai off-plan market now offers the widest choice ever.

However, before deciding on such a purchase, it is important to "do your homework", that is, to work out the entire purchase plan with a reliable broker and lawyer, who understands all the subtleties of buying an off-plan real estate in Dubai. For example, it could be an IMEX Real Estate brokers and lawyers.

So, let's have a look at all pros and contras of purchasing real estate under construction.

Benefits

Over the last few years, off-plan home buyers had plenty of opportunites to invest their money in such units and gain high returns with minimal capital outlay. Investors, in particular, were able to expand their investment portfolio and invest in several projects at once in order to get the maximum profit in the future.

The affordable real estate sector, in particular, showed high revenues from 8 percent and up during last year in areas such as Jumeirah Village Circle, Emaar Beach Vista, LIV Residences on the Bluewaters Island, and Seven Hotel and Apartments on the Palm Jumeirah.

Risks

Despite the fact that last year number of real estate off-plan transactions in Dubai increased by 36 per cenr, according to data released by the Dubai Land Department (DLD), in recent months, there have been evitable signs detected of a softening demand in this sector too, when the scales began to tilt slightly towards the secondary market.

The main concern of many potential buyers and investors is that the number of new off-plan offers growing in geometric progression will have a negative impact on these units’ prices in the future. The memory of the financial crisis and the price crash in 2008-09 is still alive, giving rise to fear that 42,000 new units under construction won’t find buyers at the construction stage.

Good Advice

In this sense, the correct choice and consideration of all important factors will help to moderate risks. For example, experts advise to give preference to under construction projects with quality amenities, services and social infrastructure units, such as schools, shops and recreation areas, combined with good transport accessibility.

The quality of construction and design, as well as the reputation of the developer, are also of great importance, if you want to secure yourself from any surprises.

However, when buying an off-plan unit, you should not count that you’’ll be given back all the invested money at once, in case you decide to terminate the contract on your part. According to Dubai law, the moneys the developer has the right to retain from the amount already paid by the buyer, depends on the construction phase, which is indicated in the contract.

If the project's completion stage is less than 60%, the penalty amount is up to 25% of the unit’s value, and if the project is completed by more than 60%, the developer has the right to retain up to 40% of the unit’s cost. However, buyers, for their part, are protected by special escrow accounts, where all invested money are accumulated, and to which the developer has access only under permission and control of the regulatory authorities.

Other details of the off-plan properties purchase in Dubai, as well as new information on special offers for apartments and villas under construction in different areas of the 'future city', are available through our experts. Please don’t hesitate to call or write:

Tel.: +7 903 232 80 80 Oleg Lavrik (Whatsapp, Viber, Telegram)

Tel. UAE: +971 (50) 2528188

Toll Free in Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com

Skype: resident69

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2,350,000
Ref.No: AP670
1BR Apt
1,308 ft2
0 AED/ft2
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Lease process (Rent out)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.
Real estate search.

Up to 5 days

Real estate search.

Selection of optimal options.

Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Property Selection

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Customer charges:
  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration
Additional services:

Property management

Sales Process
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

None

the management process
Contract of the owner and agency

1 hour

Contract of the owner and agency
Rendering of management services

1 year

Rendering of management services
Reporting

1 day

Reporting
Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Selection of optimal investment options

From 3 days

Selection of optimal investment options
Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Expenses of the investor:
  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration
Additional services:

Property management