The United Arab Emirates attracts expats from all parts of the planet. About 90% of Dubai population, the country’s largest metropolis inhabitants are foreigners. This makes the megacity’s housing stock requested both among those who have chosen it as a place for work or seasonal recreation, and among those who plan to move to permanent residence.
There are two types of properties on the market: ready-made apartments and properties for sale off plan in Dubai, UAE. Let’s try to gain insight on the last variant: what is off-plan, what are the pros and cons of acquisition, are there any risks?
Features of Overseas Real Property Off-plan
It is also called real property from the developer. However, it is important to understand that the developer does not always sell already commissioned residential complexes with apartments or apartments. Sales start from the moment when more than 10% of the work is completed, however, there is a sufficient amount of time left until the full implementation of the project. A special feature of the purchase is the payment system that is beneficial for the client.
It is carried out according to the payment plan scheme, when at the conclusion of the contract only a part of the property cost is paid. The amount of the initial payment can vary from 5 to 40%, depending on the specific developer. Further payments are made in accordance with the approved schedule. A number of developers offer installment payments even after the house commissioning, which allows you to avoid obtaining a mortgage with the limited budget.
Why it is Worth Investing in Off-plan Real Property in Dubai
The main advantage of offers from developers is substantial savings. At the time of the sales start, the cost of housing is lower by at least a few score of percent in comparison with ready-made properties. But this is not the only advantage of off-plan housing purchase. Also the advantages can include:
- The ability to change your mind and sell the unfinished property at any time. Demand is high in the emirate, it often exceeds supply in affluent neighborhoods. Even in this case, the owner will make a profit, as prices rise regularly.
- Great choice. You can choose any of the layouts you like at the initial stage of development, a limited list of proposals remains, as you approach the completion of the process.
- Opportunity to save on paying tax to the Dubai Land Department. It is 4% of the purchase price and is paid at registration of ownership. A number of developers take this amount or half of it on themselves, attracting buyers.
Risks in The Sale of Housing Under Construction
Most of all, buyers are concerned about the breach of a time limit for the commissioning. But much depends on the choice of a responsible contractor. For developers with a considerable reputation, this risk is minimized. If real property is purchased not as a place for an urgent move, but for investment, then this moment does not play a significant role. In addition, buyers may receive additional compensation if there is a delay.