Process of buying in Dubai off plan property can be viewed from several angles: a profitable investment, a permanent residence or as a place to spend the winter. Buyers have a lot of questions before purchasing: what do you need to know, what are the risks, how to start? This is understandable and logical, because the acquisition of real estate is a serious step. There are key tips for future property owners in Dubai below.
Table of Contents
The study of information about the developer
The name of the developer has a great importance in the realities of Dubai. But there may be unscrupulous companies. The Land Department has prepared a register of real estate developers for preventing unpleasant situations. The database contains all builders, who have received an official license. It’s necessary to explore the reputation and previous projects, for example, the duration of construction and infrastructure.
The choice of the type of immovable
The modern market in Dubai offers a wide range of real estate. The purchaser has the opportunity to choose a type following the needs and budget. Villas, townhouses, apartments with a different number of bedrooms, studios are available for sell. If you made the choice in favor of apartments, then you shouldn’t worry about the infrastructure. There are swimming pools, gyms, children’s playrooms, parking, SPA and other compute in large complexes. Shops and educational institutions are within walking distance. You shouldn’t count on such a short distance buying a villa or a townhouse. General utilities can be reached on foot, while a supermarket or cafe will need to be reached by car.
The choice of the district
Foreigners can buy off plan properties in Dubai only in certain areas of the city. These include almost the entire territory of the «new Dubai», for example, Dubai Marina, The Palm Jumeirah, Emirates Living, and others. The real estate near the sea avail for investment. You shouldn’t call it a good option speaking of permanent residence. The constant flow of tourists creates extra noise. If the budget is large, you can look The Greens. It’s similar to the resort location in Europe: relatively quiet and about 15 minutes from the sea by car.
The market monitoring
You need to track the expected prices of real estate before making a purchase. All processes are cyclic. In other words, if apartments have fallen in price and cost 500 000 dirhams, their cost will increase to 700 000 dirhams soon. The tabteck is actively sold and rented in Dubai despite the global crisis. Demand for rental housing is growing by 5-10% annually. However it’s possible to purchase the property at an affordable price. The main rule is to watch the wavering.
Pay off period
This point is extremely important for buyers, who consider off plan projects as an investment. The average return on placement of funds is 7-9%. Optimally selected area and type of property can change this indicator for better or worse. Profitability can only be calculated roughly due to constant market changes. The payback is affected by the stage of construction. The real estate at the initial stages of building cost significantly less than commissioned.
The features of the financial side
Byers needs to make consistent of the final cost and method of payment. It’s possible to pay for property for up to 10 years, but an interest rate is added to the price of the real estate. All key elements and nuances must be indicated in the contract of sale. The legal processes are recommended to be delegated to specialists. This decision will help to prevent misunderstandings and errors.