For international property investors, Dubai offers a lot of attractive opportunities. As a smart investor, it is important for you to understand how the property buying process works in Dubai – the steps involved, the fees and expenses you have to incur, and how to protect your rights as an overseas property owner.
Advantages Of Buying Off-plan Properties in Dubai
- This is your opportunity to buy the best unit(s) at the lowest possible price for the project, in turn maximizing the returns on your investment.
- There is an opportunity to be had before the project is even completed, at a considerable profit on the assumption that the project proves popular and the market is performing well.
- Better payment plans are available for off-plan properties, usually with lower upfront costs.
Step By Step Buying Process In Dubai
- Select the typical investment – When it comes to choosing an off-plan property, whether you are an investor or home buyer, it is very important to compare your budget and needs with market availability in various projects. This is where having a trusted and experienced Agent plays a big part in increasing the chances of gaining the maximum return on your investment.
- Viewing – Your next step will be a visit to the developer sales boutique to get a complete understanding of the project advantages, as well as every component of your future property in the form of a project model, brochures or virtual tour. Some developers will have a Show Property available for you to visit as well.
- Booking – Once you have chosen the unit type, you will need to pay booking fees to make sure it will be removed from the availability list for others. Most developers ask for a 5-10% booking fee, along with signing the booking form for the selected unit.
- First installment & DLD Fees – After you complete the booking process, you will be requested to complete your first installment: “Down payment” along with paying the Government Registration Fees: usually 4%, but some developers offer DLD waivers or some other form of discount.
- Signing the SPA – Whether you are residing inside or outside the country, the developer will send you the “Sales and Purchase Agreement” for your signature before you will receive the dually signed copy after getting it signed by the authorized signatory from the developer’s end.
- Oqood registration – (This step is highly important to guarantee your purchase is already registered in the governmental authorities) After completing this step you should receive your initial contract of sale issued via the Dubai Land Department.
- Settle Due Installments – Depending on the agreed payment plan, you will be requested to settle a particular percentage of the purchase value before you become eligible for handing over your property.
- Project Completion Date – As per the clause stated in the SPA regarding the project completion date, the developer will be obligated to complete the construction, then send the completion notice to all clients together.
- Inspection & Handover – Once you have settled the required payment for handover, you will be invited to inspect your apartment on a selected date in coordination with the handover team representing the developer. It’s advised you hire a Professional Snagging team to complete this step – it will remove stress for you and ensure the unit is in the best condition for living/renting.