Buying Off Plan in Dubai


 

Dubai, known for its iconic skyline and luxurious lifestyle, offers a dynamic real estate scene with scenic water views, skyscrapers, and serene spots for quiet reflection. Dubai's booming real estate market and attractive investment opportunities make it a popular destination for property buyers around the globe. From luxury apartments to beachfront villas, the options seem endless. However, buying property in Dubai requires careful consideration and due diligence. So, it's essential to consider several things to keep in mind before you make your purchase. These include:

 

 

Total Transaction Cost 

Before buying an off plan property in Dubai, it’s essential to consider its affordability and all the fees that will be included in the transaction. Here are some key points to keep in mind:

 

Budgeting: Setting a budget for purchasing a property can be determined by thorough research of available projects in the market, reviewing their prices, and more importantly understanding the payment plans being offered. Its important that you have cash on hand for booking fees or for the Expression of Interest (EOI). Upfront fees are estimated to be between approximately 6% and 8% of the purchase price.

 

Mortgage: In the United Arab Emirates Off-Plan properties do not qualify for mortgages. Secondary properties or Primary-Ready with a handover notice from the developer are the only types of properties that qualify for mortgage financing. 

 

Service Charges: Be prepared for hidden costs like services fees, including transfer fees, registration fees, Oqood fees, Dubai Land Department fees and Knowledge fees. Additionally, consider annual service charges as a property owner before selecting a project to invest in.

 

Operational Costs: Factor in operational costs such as annual maintenance charges, air condition(chiller free or independent), furnishings, move-in costs, and utility charges when budgeting for the property purchase. 

 

Choose The Best Location

When choosing the best location for buying property in Dubai, it is essential to consider various factors such as proximity to amenities, the reputation of the developer, and the overall investment potential of the area. Some of the best locations for property investment in Dubai include:

 

Jumeirah Village Circle: This residential hub is a popular choice for investors looking to rent out their properties over a long period of time. It’s centrally located and easily connects residents to major highways. It has become a prime residential location for UAE residents.

 

Dubai Marina: Known for its luxurious apartments and vibrant lifestyle, Dubai Marina is a popular choice for property investment and has remained as one of the most sought-after locations in the region for over 20 years.

 

Downtown Dubai: This central business district offers an eclectic mix of residential, commercial, and retail properties, with the largest landmarks, entertainment centers, and shopping destinations in the world, making it an attractive investment destination.

 

Palm Jumeirah: A global landmark that can be viewed from the skies, this project continues to grow with only the best ocean and city skyline views. It’s known for its private beaches, world famous hotels, and resorts with access to its own metro line it's easily accessible for tourists and residents alike. 

 

Dubai South: An up-and-coming area that is being developed with some of the best developers as a destination fortified by the Dubai government’s vision. Like most areas in Dubai now, it is a freehold district planned to have seamless connective public transportation that includes a new Dubai Metro line connecting to Expo City, Golf District, MBR Aerospace Hub, and Al Maktoum International Airport.

 

Palm Jebel Ali: Is a megaproject spearheaded by HH Sheikh Mohammed bin Rashid Al Maktoum Vice President of the UAE and Ruler of Dubai which will see the new development transformed into a destination with hotels, beaches, residential and ultra-luxurious leisure attractions. It’s planned to add roughly 110 kilometres of coastline to the city.

 

Off Plan Projects 

It is essential to conduct a thorough search for projects that align with your budget and preferences. Dubai's real estate market offers a diverse range of neighbourhoods, each with its unique characteristics, facilities and price points. Identify your priorities first and consider things such as proximity to amenities, transportation links, and lifestyle preferences. Explore emerging areas that may present more affordable options compared to well-established neighbourhoods. Research on upcoming developments and infrastructure masterplans can also provide insights into potential growth areas that may offer good investment opportunities. Some more affordable locations include:

 

Legalities of Buying Property

Before buying property in Dubai, there are several legal steps and considerations to keep in mind. The legal aspects of buying properties in Dubai are regulated by Real Estate Law No. 7 of 2006: Land Registration Law. According to this law, UAE and GCC citizens can purchase real estate anywhere in Dubai, while foreigners can buy properties only in areas designated for foreign property ownership, including freehold and leasehold options. Here is a simplified overview of the legal procedures you need to follow when buying property in Dubai:

 

Ownership Eligibility: Understand the eligibility criteria for property ownership based on your citizenship and visa status.

 

Contract and Agreement: Thoroughly review the buyer/seller contract and sign the real estate sale agreement.

 

No Objection Certificate (NOC): The seller must obtain an NOC from the developer, confirming that there are no outstanding amounts on the property.

 

Property Registration: All property transactions are registered with the Dubai Land Department (DLD), and as an expat, you'll need to pay a registration fee. 

 

Due Diligence: Conduct thorough due diligence to ensure the property's ownership and legal status.

 

Interested in buying property in the UAE?

CIELO Properties provides personalised solutions for all your needs, ensuring a smooth, well-informed and stress-free buying process. Whether you're a first-time buyer or a seasoned investor, we offer comprehensive support from understanding financing options to identifying the perfect property that aligns with your goals.

Let’s Unlock the door to your dream property with CIELO!