You can sell your off plan property after you pay a specific percent of the property value based on your SPA with the property developer. Usually, it is after you pay 30-40% of the property value. Keep in mind that your off plan property in Dubai may have fierce competition in case the developer still has availability since developers run generous property offers these days. If you decide to sell, then check the current market prices of your property, then give it to property experts to sell it for you. -- Sometimes it is worth paying some commission to the property broker to push your property in the real estate market.After you get the right buyer, you go to the developer office to obtain NOC from the developer that costs around 5,000 AED which is usually paid by the buyer. After that, you go to the trustee office with the buyer and agent. There you get the selling price of your shares in the property as a manager cheque from the buyer, and the buyer usually pays the transfer fees that is 5,000 AED in case of the property price over 500,000 AED and 3,500 AED in case the property value below 500,000. The buyer also pays 4% of the total property value as registration fees to Dubai Land Department.
Once you have identified which location and type of lifestyle you require, being aware of its benefits in terms of property value and return on investments is a must. The best thing about purchasing an off-plan property in Dubai is that it offers quick asset value appreciation especially those projects located in prime areas. If you are an investor, taking advantage of today’s market is a wise decision. By purchasing an off-plan now and wait for the right time to exit or resale your property especially when there is a good opportunity in the market, then you can definitely sell it at a much higher price. Furthermore, buying an the off-plan project does not require a large amount of money as most off-plan investments in Dubai comes with attractive payment terms and deals.
Fees are applied when purchasing an off-plan property in Dubai. Buyers and investors need to make a payment for the following fees such as Dubai Land Department (DLD) fee (4% of the total amount of the property), service charge (e.g. trustee fee), and the recent value-added tax (VAT). These fees are applicable to both UAE and foreign nationals. However, these charges are sometimes waived upon the intent of the developer or if there is ongoing promotion and deal with a particular off-plan project.
Any person of any nationality, whether based overseas or a resident can purchase or own in any freehold properties in Dubai. Buyers and investors are not required to hold any type of residency or similar permit in order to buy an off-plan property in Dubai. Popular freehold areas in Dubai include Dubai Marina, Downtown Dubai, Jumeirah Village Circle (JVC), International City, and Palm Jumeirah. These locations are ideal to both new and existing property buyers.
Buying an off-plan property allows investors to acquire a unit at its lowest price compared to ready properties. For first time buyers, off-plan properties for sale in Dubai offers a great opportunity in terms of return on investments (ROI), income-producing assets (for holiday home), and market value appreciation. These type of properties offers a number of incentives and benefits allowing first-time buyers to enter today’s Dubai real estate market at a more affordable price. Also, real estate developers offer attractive payment terms, making it easier for first-time buyers to avail off-plan properties in Dubai.If you are looking for the right property investment or a home in the future, you can browse on the list of off-plan properties in Dubai or simply get in touch with us to find out more information about these projects.
The maximum loan during the construction period is 50% and off-plan properties are typically cheaper than ready properties. When you pay 50% of the purchase price, it is preapproved at the time of application and is guaranteed to be paid off at completion, regardless of the individual’s financial situation. After paying 50% for an off-plan property, you can take 25% to 30% cash out. If the property during construction has increased in value, you can borrow 75% to 80% of the property value and withdraw more cash out. This process requires property revaluation and mortgage reapplication. However, if you’re content with the numbers and you’d like to receive cash at a low mortgage rate, it’s also another option. It is recommended to choose a plan that you are comfortable and committed and will give you the freedom to save up or exploring other investments when the property is completed.
Yes, you can sell off plan property before the completion date in Dubai.
The first step is to contact the developer and find out how much must be paid off of the property in order to obtain a sale No Objection Certificate (NOC). The exact percentage or figure is usually somewhere around 30-40% but will vary for different developers in Dubai.
The new homebuyer pays the seller an equal amount to what they've paid off to the developer (+/- any difference agreed on). Then the new buyer will take over the existing payment plan of the off plan property and pay all future due installments directly to the developer.
Fortunately for investors and end-users, Dubai is home to hundreds of affordable and luxury off-plan projects. These developments are usually located across the city’s most prestigious destinations, close to famous landmarks, eccentric man-made islands, nature-inspired communities, and cosmopolitan living right in the center of Dubai. The city has a lot of prime locations with off-plan projects ideal for your lifestyle needs. You can choose from beachfront communities at Bluewaters Island, Dubai Harbour, Jumeirah Bay Island, and Palm Jumeirah for example. Live on a tranquil environment setup at Emaar South, Dubai Hills Estate, and Al Barari. Or if you prefer a city lifestyle, urban off-plan projects are available in Business Bay, Downtown Dubai and Dubai Marina just to name a few.
Property developers in Dubai continuously create attractive payment terms to lure more and more investors. In fact, you do not need to have a large amount of money to purchase an off-plan property. See payment terms of these projects (e.g. pay just 10% and move in, 50% during construction and 50% post-handover, etc.) and identify how much is for the initial payment as well as the other fees such as government fees, service change, and VAT.
Buying an off plan property means you commit to purchasing a property either before or during the construction phase. It has significant advantages:
Plan and save money – It allows investors to get purchase at the earliest and lowest possible price and buyers to pick the very best apartments in a specific development. In return, there's a high chance of gaining the maximum return on their investment.
Sell before the completion date – Investors can sell off their off-plan property contracts prior to the completion of the projects and at a considerable profit (assuming the market is well-performed and proved popular.
Lower up Front Costs – Off plan property, payment plans can and do vary from different types of developers in Dubai. Some of the developers only require a 10% down payment and the rest linked to constructions the required expenditure is relatively low.
The potential risks when purchasing an off plan property are:
Delayed Completion Time– There are usually delayed handovers of off plan properties and there are have been cases of projects being completed after scheduled completion dates. In this case, it's highly advisable and important to do research on the project developer and look into their track record, Make certain any signed sale agreement ensures you are compensated for any unexpected or unscheduled delays.
Change in Market Conditions – The real estate market fluctuates all the time. If there's a downward move in property prices, the property can be worth less than what the buyer has actually paid. It can affect off plan properties more as it may be harder to liquidate than ready-to-move-in properties.
Before we go further, let us first define “what is an off-plan property?” An off-plan property is a property or development before a structure has been constructed upon it or simply an under construction property. It is usually marketed to investors and end-users before or while the construction is ongoing and to be paid with such financial terms. Off-plan properties in Dubai are widely and easily available, you can choose from which type of property you prefer - affordable or luxury. Also, the city hosts a plethora of off-plan developments strategically located across the city.
Investors can sell off their off plan property contracts prior to a project’s completion and so it varies from developer to developer. For example, before being able to sell it to a new owner, Dubai’s top developer Emaar Properties requires owners or investors to have 40% of their off plan property paid off. However, the 40% figure does depend from developer to developer, so it’s essential to check with the developer. Buyers and seller must come to agreement with price and terms, sign contracts and apply for No Objection Certificate (NOC) where the new buyer is registered with the developer. Once transfer is complete, the new buyer will ultimately take over all the outstanding payments. It's important to point out that the new buyer is responsible for the 4% DLD Transfer Fee although it been paid by the first buyer
Investors can sell off their off plan property contracts prior to a project’s completion and so it varies from developer to developer. For example, before being able to sell it to a new owner, Dubai’s top developer Emaar Properties requires owners or investors to have 40% of their off plan property paid off. However, the 40% figure does depend from developer to developer, so it’s essential to check with the developer. Buyers and seller must come to agreement with price and terms, sign contracts and apply for No Objection Certificate (NOC) where the new buyer is registered with the developer. Once transfer is complete, the new buyer will ultimately take over all the outstanding payments. It's important to point out that the new buyer is responsible for the 4% DLD Transfer Fee although it been paid by the first buyer
Off-plan property is a property before a structure has been constructed upon it. Pre-constructions are usually marketed to real estate developers and to early adopters as developments so that the purchaser can secure more favorable finance terms from their lenders.
Buying off-plan has its own unique financial challenges.
Most developers will want to see that you have mortgage finance in place before you exchange contracts. You will also need to pay a deposit of about 5 or 10 per cent at exchange.
However, most lenders will only hold mortgages open for six months so if your property takes longer than that to build then you face having to reapply for a mortgage later on. If you can’t get one you could then lose your deposit and have to start looking for a new property
To reduce financial risk, developers sell off-plan property on their developments. In most cases, this route helps the developer with cheaper financing than borrowing from a bank
Real estate investment is a recognised long-term investment in Dubai, and since 2002, the most populated city in the UAE has become a hub for property investors. Investment in Dubai is considered a stable investment choice.
Firstly, buying off the plan means you could save a lot of money on stamp duty, as most states offer greater discounts on newly constructed properties and, if a buyer signs a contract before construction begins, stamp duty will only apply to the land value, not the finished product
A legal charge, in simple terms, means a person or group who has a legal right over a property. This means if the developer goes bankrupt then you have a legal right over the property.
It is not possible for any non-GCC national to get lifelong residency in the UAE, even if they purchase property. While it can be possible for an expat to obtain a residency visa based on property ownership
The process of buying a property includes four basic legal steps that need to be followed in Dubai.
1. Establishing buyer and seller agreement
Once you have found a property that you want to invest in, you must consult a real estate agent. They will help you communicate, negotiate and outline the terms of sale with the owner.
2. Signing an agreement for sale
Once all the details are finalized, it’s time to sign the agreement of sale, also known as the Memorandum of Understanding (MoU). In Dubai, this document is entitled ‘Contract F’ and is available on the Dubai Land Department’s website, under the ‘Contracts’ page. Upon signing this contract it is standard practice in Dubai for the buyer to pay a 10% deposit of the property value to the seller.
3. Applying for a No Objection Certificate (NOC)
To allow for the transfer of ownership you must apply and pay for a No Objection Certificate from the developer of the unit you are purchasing. This will allow for the transfer of ownership. Once all outstanding service charge payments are finalized the developer will be able to provide an NOC.
Off-plan property is a property before a structure has been constructed upon it.
Any person of any nationality, whether based overseas or a resident of Dubai, can purchase in Dubai's freehold property market
The emirate's RERA has introduced numerous measures that needs to be met by developers to make sure the off plan project is completed. Of those measure, the developer must own 100% of the land belonging to the project. Additionally, they must either deposit 20% in escrow account, make a down payment of 20% as bank guarantee, or at least 20% construction completion before selling the off plan property. The regulatory arm of Dubai Land Department than requests contractors to submit a 10% performance guarantee. It’s crucial that buyers do through research and advise looking the developer’s track record as well as reputation. Make sure the developer, project and project’s Escrow account are all registered in the Dubai Land Department’s Real Estate Regulatory Arm (RERA).
Buying real estate 'off the plan' means committing to buying a property that hasn't yet been built. For both potential home owners and property investors, buying off the plan can be more affordable and flexible than buying an existing property
The quality of work may also not meet your standards. Rising Interest rates – Interest rates could increase before you settle on the property which is problematic if you wanted to fix the term of the loan at the current interest rate.
If you are unable to complete the payment of your off-plan property, then the developer has the following rights:
If 80% of the construction is complete, the developer may keep all the money received from the buyer and sell the unit in Public Auction to recover the payments or the developer may deduct more than 40% of purchase price and cancel the contract.
If 60% of the construction is complete, the developer may deduct 40% of purchase price and cancel the contract.
If construction has started but hasn't reached 60%, the developer can deduct 25% of purchase price and cancel the contract.
If circumstances arise outside of the developer’s control that prevent the completion of construction, the developer is entitled to deduct 30% of the purchase price and cancel the contract.
Here are some of the benefits of buying a property in Dubai.
Economic Stability
Advanced Technology & Innovation
Security & Safety
UAE Residency
Low Costs
Tax-free income
High standard of living
World-class infrastructure
Safety
Strategic location
Competitive prices and rental yields
Stable and mature Dubai property market
The primary market purchasing fee in all DLD Registration Trustees offices is AED 4,000 for transactions over AED 500,000, and AED 2,000 for those below this amount. Fees are payable in cash and paid by the parties as agreed.
For secondary market purchases, total fees include a 2% commission fee (for the sales agent or broker), the NOC fee [around AED 5,000 max] and a transfer appointment fee [AED 4,000].
You will need to apply for a mortgage through one of the banks in the UAE. Mortgage registration charges payable to the DLD amount to 0.25 per cent of the loan value, plus AED 290 as a standard charge.
The following documents are typically required for UAE residents to receive mortgage approval:
Passport and visa copy of the purchaser.
Copy of Emirates ID.
Proof of current address such as Ejari and Dewa bill.
Salary certificates or evidence of regular income.
Bank account statements for three to six months, which reflect the corresponding salary credit.
MoU for the sale of the property.
Title deed of the property to be purchased.
Seller’s passport copy.
No Objection Certificate from the developer
Buying off-plan means you purchase your home before the developer has finished building it.
The property which is sold before it has been constructed.
Off-plan property investment has the potential to produce incredible capital gains and rental income when you do it right.
An average property transaction in Dubai takes around 30 days to complete from the date on which the Agreement for Sale is signed.
The UAE government implemented a landmark policy by introducing value-added tax (VAT) at a rate of five per cent, effective from January 1st, 2018.
The VAT law states that all real estate transactions, apart from the sale of vacant commercial properties and commercial property leases, are either not subject to or exempt from the tax.
It's a place buyers never want to be in, a 'Delayed Handover'! Your property has been signed, sealed but not handed over on time. However, the Dubai Land Department has enforced laws since the opening of freehold zones to assist investors who find themselves without a key on their date of handover.
Here are the measures and stuff you need to take care of:
First, make sure you paid all the required fees due by the handover date as well as all the paperwork you would have got.
Go To the Site for a Tour Find the actual completion date.
When upgrading a house, contact the Dubai Land Department and meet with the developer on-site to see the physical state of the property.
Talk About A Solution to Your Developer
Be sure to tell your developer what solutions they deliver. The options available distinguish not only between developers but also within individual projects, so find one that works for you.
File a Claim
Please contact a good property lawyer and file a lawsuit with First Instance Court of Dubai if none of your developer's options are feasible or reasonable.
Track If It Is A RERA Cancelled Project
In the case of construction officially cancelled by RERA, legislation for developers is in effect in Executive Council Resolution No. (6) of 2010 (as per Law No. (13) of 2008). As formalized in Decree No. (21) of 2013, cancelled projects are the responsibility of the specially formed judicial committees, the Real Estate Cancelled Projects Committees (part of Dubai Courts) which handle the settlement of rights and liquidation in these cases. If your project has not been officially cancelled yet, investors are encouraged to inquire by email with the Committee.
How to protect yourself when purchasing an off-plan property:
Choose a developer that provides post-surrender payment or payment bonuses against building milestones.
Make sure the property is a registered project of DLD (Dubai Land Department) and is approved by RERA.
Confirm that they have registered the property in the Interim Property Registry through Oqood with the developer, a DLD service that facilitates the registration of off-plan properties with a view to managing and protecting investor and buyer interests.
By the end, do the reading! Visit the site, check out previous developer projects, speak to other investors, read forecasts and finally just work with trusted developers and brokers.
Eligibility :
1. Minimum 2 million (fully paid, not mortgaged)
worth property (more than one property also will
accept) under the applicant name .
2. The applicant must be 55 years old and above.
3. Person must be inside UAE .
Steps of Procedure :
1. Medical fitness test .
2. Hold the family visa / Cancel the family visa .
3. Cancel the visa for the applicant.
4. Visa Stamping (For 5 Years) .
5. Emirates ID (For 5 Years).
6. Un hold visa for family .
Requirements :
1. Title deed .
2. Passport .
3. Old Emirates ID .
4. Photograph .
5. Health insurance .
Fees :
1. Medical (VIP) – 753 AED .
2. EID (5 Years) – 572.50 AED .
3. New (5 Years) visa – 888.75 AED .
4. Management Fees – 100 AED .
Total – 2314.25 AED
File Opening for Dependent Visa – AED 318.75
Note: The fees doesn’t include health insurance
Eligibility :
1. Minimum 5 million (fully paid, not mortgaged)
worth property (more than one property also will
accept) under the applicant name .
2. Person must be inside UAE
Steps of Procedure :
1. Medical fitness test .
2. Hold the family visa / Cancel the family visa .
3. Cancel the visa for the applicant.
4. Visa Stamping (For 5 Years) .
5. Emirates ID (For 5 Years).
6. Un hold visa for family .
Requirements :
1. Title deed .
2. Passport .
3. Old Emirates ID .
4. Photograph .
5. Health insurance .
Fees :
1. Medical (VIP) – 753 AED .
2. EID (5 Years) – 572.50 AED .
3. New (5 Years) visa – 888.75 AED .
4. Management Fees – 100 AED .
Total – 2314.25 AED
File Opening for Dependent Visa – AED 318.75
Note: The fees doesn’t include health insurance
