Guide: Buying Off-plan Property in the UAE

As one of the largest real estate markets globally. The UAE is already famous for providing good opportunities for making money. Buyers have off-plan and ready-to-occupy homes, with various housing options for investors. Are gradually gaining popularity among investors and buyers. Accessibility of the payment plans and fundamental profitability of project completion. Are the core causes of the increased interest in off-plan property purchases?

It is now high time to discuss the peculiarities of the processes, methods. And other factors essential to consider to speak about purchasing off-plan property in Abu Dhabi and all over the UAE.

What is an Off-plan Property?

The property may well have been merely the site.

How to Buy Off-plan Property

These are all the requirements that investors have to fulfill before buying off-plan real estate in the United Arab Emirates.

Draft your Budget

The first process of purchasing an off-plan house in Dubai or any other Emirates entails making a proper budget. To make things easier. Break down the costs associated with buying an off-plan property into three categories. It covers the amount equal to 10% of the contract price of vehicles. The installments, and the legal charges. As a down payment. Bear in mind that no bank will grant a mortgage for the down payment. Therefore, buyers will have to save a certain amount on their own.

To get some excellent tips on managing your expenses. Read the blog entry that covers strategies for saving for a down payment.

Consult with a Real Estate Agent

To go on with the purchase, you should consult with a real estate agent. As we have a certain look into the matter, hiring a real estate agent has numerous benefits. And has the required experience and expertise for that.

The real estate agent will assess the property market value. After the entire completion of the project besides giving relevant information about the project. Further, the experience with the developers may be of great help. In arriving at the final cost and the pattern of installment.

Extract Complete Details of the Project

To become an off-plan property buyer. A buyer has to be willing to commit long-term to a property without actually seeing a real-life model. And make his or her decision based on the floor plan of the particular property. With this in mind, it is crucial to identify and then verify any project-related information. This should include information on detailed market experience and track record. The number of projects developed and the date delivered, any legal suits as well as lease terms of the land. A thorough check will save you headaches in the future as a driver.

Choose a Payment Plan

The payment plan should be determined in the last stage of this process. To secure them the investors are offered many payment schemes by the developer. The company mainly pays for the business based on the amount to be paid after the down payment. And every payment plan varies from one buyer to the other.

Choose the strategy depending on the budget calculated by you. In your contract, you should pay special attention to the interest rate. The date of completion of the construction, and penalties.

Complete the Legalities

After the developer has signed the closing of the contract. The buyers are on their own in terms of legal requirements.

Acquire Reservation Form

Following the legal confirmation of the off-plan unit purchase, the first obligatory step acquire the reservation form. It is a lawful instrument that includes the buyers’ identification data. And kind of property, payment plan, and the down payment. From the formwork, it becomes apparent that before it goes to the next stage.

Sign a Sales and Purchase Agreement (SPA)

In the UAE, one of the most significant steps in buying an off-plan property is making an SPA. The SPA has details of property value the structure of units, the handover date, and the payment option.

Always read the signed form as this is normally evidence of the agreement between the two parties.

Besides this, ensure that the legal name, identity, and all other information about the developer. Also as information about the property is correct. Like the DLD of Dubai or the TAMM of Abu Dhabi.

Deposit Money in Escrow Account

To check the verity of an escrow account. You can go to the official website of the institute that comes under the government of your emirate. For instance, Dubai residents can Access the DLD and check the escrow account of the property.

Once you have confirmed that account, then transfer the funds to the escrow account. You have two options for making payments: credit card or wire transfer.

Pay Brokerage Commission

The commission also differs and mostly depends on the overall value of a given property.

Property Handover

And check the house seven days before the handover date. Purchasers can confirm at the inspection stage if the final works of the property meet the expectations of a developer. Also, buyers require an examination of the interior and seating, painting, surface finishing, and materials used in consumption. As earlier stated the buyers have the option of demanding a replacement of the missing components from the developer.