We have witnessed that the UAE property market is improving at an alarming rate. The market has come up with decreased sales and rental prices which have attracted many investors. Now the market is known as buyers’ market and tenants are also taking the advantage of benefits. Due to recent developments in UAE, developers want buyers to invest in off-plan projects.
There are many advantages associated with the off-plan property, but there are certain aspects that one should be aware of before signing a contract.
Before looking for the property, first work on the areas you want to live in by thinking about future and focus on your needs such as easy access to the beach, school. Supermarket, fitness club and so on. Always make sure of the infrastructure around the property development. The new areas with recent developments have all the essential facilities of life to make sure your life is easy and peaceful.
Moreover, now the modern houses come up with the latest smart technology, make sure your house has that as it makes the living very easy.
Developer Track Record
When you are done with off-plan property search, work on the track record of the developer. You can also visit the developer recent finished projects to ensure about the end product and quality. Always look for show homes they will give a good insight into the developer. Also, ensure that deliverables are also present on the official contract paper for the future proof.
The good and positive thing about the off-plan property is that a payment plan can be staggered as per the construction progress. You can also take a bank loan and have a valuable investment. You can take a maximum loan up to 50% of the property value, thus half amount you have to pay before taking a loan from the bank. Also, keep in mind about your current home you live in, you might have to pay its mortgage and rent as well. Thus a good homework about the finances should be done before.
We have also seen a new trend in UAE which allows you to pay some amount as a deposit first and then the major payment after the property will handover. Also, ensure that all payments are made at the name of the project account instead of a developer.
Final Completion and Handover Date
The major problem that off-plan buyer face is the delay in the competition date of the project. In order to avoid this, the UAE government has come up with strict laws and regulations that need to be met first by the developer before selling the project’s units. These include:
- Complete possession of the land on which property has built
- Bank guarantee in the form of 20% payment
- 20% deposit to escrow
- Construction of 20%
However, rules and regulation might differ from emirates to Emirates so keep that in mind.
Make sure that your off plan agreement whether purchase or sale has highlighted handover or completion date along with compensation from the developer if the project is not complete by the due date.
We have to admit that off-plan properties are very popular and attractive among the buyers. It all depends on the preference of a buyer and we can’t say much about rights and wrongs. Have patience because there are no quick returns, you have to wait for a good time. Though, financing, good price, and leniency in monthly payments to the bank in case of the loan are the major attributes of the off-plan property.