The UAE sales market is undergoing a boom. Increased demand from foreign investors is observed in Dubai. The country’s largest emirate attracts expats from all parts of the world. The results of 2021 showed that property for sale off plan in Dubai UAE was actively competing with ready-made housing. Let’s consider the specific features of this sector and get a sense of the pros and cons.
What is overseas real property off-plan
These are offers from developers and local real property agencies in residential complexes that have not yet been commissioned. Off-plan projects cover all types of real property, from apartments and apartments in residential complexes to townhouses and villas in gated communities of the emirate. This is an opportunity for foreigners to acquire ownership of the housing stock of the desired area. In most cases, housing is paid in stages, as the development stages are implemented. The initial payment depends on the specific developer and varies from 5 to 40% of the value of the object.
Pros and cons of off-plan apartments
The advantages of purchase can include:
- Favorable cost. The housing is much cheaper at the initial stage of construction than at the time of property commission. The difference can reach a few score of percent.
- Freedom of choice. The owner can resell the apartment or house at any time, without waiting for commission. High demand for Dubai real property provides liquidity. At the same time, housing stock will be sold at a higher price.
- A large number of offers. The more available apartments, the wider the choice for the buyer.
- Opportunity for additional savings. When registering ownership, the buyer pays the tax provided by the Dubai Land Department. It is 4% of the value of the acquired property. Developers strive to attract buyers and offer a discount system. Some developers take upon themselves tax payment in full, others pay 50% of the amount.
There is only one disadvantage: the need to wait for the property commissioning. If you do not plan to move to permanent residence in the near future, this moment is not crucial.
Potential risks in selling
Most buyers are concerned about the timeliness of the house commissioning. The risk of losing funds in a lingering construction should not repel a purchase, as it is reduced to minimum. The state regulates the construction process at each of its stages. Buyers are protected from financial losses:
- The developer cannot start selling if he does not have ownership of the land.
- For construction, it is necessary to open an escrow account, which must contain at least 20% of the total construction costs. This money acts as a guarantor of the fairness of the developer’s intentions.
- To start selling, it is necessary that at least 10% of the development has already been completed.
If the developer disrupts the deadline or cannot complete the project due to bankruptcy, it is transferred to another developer. You can get acquainted with the offers from developers with a reliable business reputation in the source https://emirates.estate/
