The trend of buying ready properties has always been on the rise in Dubai. However, in recent years, transactions for off-plan properties have witnessed a spike as well. This shift in trend is majorly due to the comparatively low rates of these properties and the fact that they come with a convenient payment plan.
It’s a known fact that buying a property in Dubai is a big feat. You need to have a lot of financial resources to be able to do this. However, off-plan properties do not require huge capital. And coupled with that, these properties come with a convenient pricing plan. This attracts not only local but foreign investors in Dubai as well.
Suffice it to say, due to affordable prices and payment plans, it’s not extremely tough to buy a waterfront property, which otherwise can be very expensive if it’s in a ready-to-move-in state.
On this note, let’s take a look at the complete procedure to buy off-plan property in Dubai:
Define a Budget
That’s the basic step you need to take before making any investment. If you haven’t researched the market and defined an impractical budget, you are certainly going to face challenges and difficulties during this process.
Even if you want to apply for a loan, it’s recommended that you do your research. Apart from a decent credit score, your income source should also be stable. If both these conditions aren’t met, your home mortgage application will be rejected.
Lastly, don’t use all of your savings for the investment. It’s always a wise idea to save some amount for a rainy day.
Select a Location & Project
This phase consists of two main steps.
The process starts with selecting a location. As Dubai houses numerous residential communities, it can be tough to narrow down to a single one. In fact, the decision can prove to be a rather overwhelming one. It depends on numerous factors, including proximity to the main attractions of the city and other facilities. Also, the fact that you’re a foreigner or local matters here since the former can buy property freehold areas only.
However, bear in mind that a community located near the city centre will cost you more as compared to the one that’s located away from the hubbub of the emirate.
Coming to the next part, it consists of choosing a residential project. Buyers are surely spoilt for choices in this regard since there are numerous projects launched by renowned developers in Dubai.
An important thing you need to know here is that not every project is suitable for your investment. Again, this step requires the buyer to do extensive research. You must choose a project that occupies a convenient location, is well-connected and equipped with modern facilities. Furthermore, pay special attention to its layout and floor plans.
This entire phase holds crucial importance. Therefore, it must not be rushed. It’s always a wise idea to take your time and consider various factors before finalising a community and project.
Select the Type of Property
The next step is to select the type of property. Again, you’ll have many options at your disposal at this stage. You can choose a studio, apartment, townhouse, penthouse, duplex or villa, depending on the availability of units in the selected project.
If you are buying the property for investment purposes, choosing an apartment can be a lucrative option, or you can opt for a villa. Some newly launched residential projects, such as Stella Maris Tower in Dubai Marina, have options for both apartments and villas.
Contact the Developer
Once you have finalised the type of property, project and location, it’s time to proceed further. And for this, you would need to contact the developer. Ask every question that you may have in mind and get as much information as you can from them about the project. Also, don’t forget to visit the site of the selected project. This will help you know about the progress and completion status.
Reserve your Unit
After you have done every bit of research about everything, the next step is to book your unit. It can be done by signing the agreement and paying the booking fee, which is usually 5 or 10% of the total price of the property.
Pay 1st Instalment
The time you have to pay the 1st Instalment varies from developer to developer. However, most of them require buyers to pay it when they sign the sales agreement. Be mindful that the down payment of the property and government registration fee is also included in this Instalment.
This step requires you to pay your first Instalment. This also includes government registration fees and down payment.
By completing the aforementioned steps, you’ll become a proud owner of a property in the city of gold i.e. Dubai.