Investing in a Dubai Off Plan Project can be a daunting task with so many different options and developers competing for market share. Every developer is catering to their own market niche and have designed payments plans and projects to attract a certain type of buyer. Some are serving home buyers, other are serving investors looking for appreciation while some are aiming to attract investors looking for a good rental income from their property. With so much to choose from it can be a little confusing to make a decision hence we have come up with a short guide that can help you in reaching a decision. We have also compiled data on different Dubai Off Plan Projects on a dedicated website aimed at helping you do your research on developers and projects, for this can visit dubaioffplan.org.
Reasons for Buying
Every Dubai Off Plan Project offering does not suit every possible need e.g. a property with a post handover payment plan of 2 years where you pay 40% of the price in equal monthly instalment will not suit a salaried person looking for the property as a home. For this exact reason you need to decide in advance if you are looking to purchase a property for long term, short term, RoI, etc. and will it fit into your goals for the future.
Once you know what you want from your property purchase it is tome to decide what type of a unit would best suit your requirement. It can by anything e.g. land, apartment, townhouse, villa, commercial unit, full building and so on. Make sure to weigh in factors like upkeep charges, maintenance, community service fees and more into your purchasing plan when deciding on the type of unit you prefer.
Perhaps one of the most important aspects when investing in a property is the location. Decide on the location where you want to purchase your property keeping in mind annual community maintenance costs, amenities, nearby schools, etc. Prioritize according to what best suits you. For Off Plan you also need to take into considerations the master plan of the community to see what the future for this community would look like.
Know your Developer
It is very important to do your due diligence on the developer that you would be purchasing from. Some of the important factors to consider would be:
- Off Plan Projects currently on-going
- Reputation and up-keep of completed projects
- Market reputation and after sales support offered by developer
- General perceptions of the types of development the developer specializes in e.g. luxury, budget, etc.
Your relation with the developer usually lasts throughout your ownership of the property so better to choose after thorough research.
Know your Property
It is very important to understand the unit and surroundings you are buying into. You should understand the layout, room sizes, balcony, floor, kitchen fittings, bathroom fittings, etc. of the unit before you finalise your purchase.
Knowing the surroundings is also very important. You should know how far it is for community centers, major highways, if your balcony or garden would be facing another unit, etc.
Understanding the Financials and Reading the Contract
You should carefully go through the contract or if you have the option then let your lawyer go through the contract and explain you to what you are committing to and what the developer is committing too. You should completely understand your payment plan and financing options before you sign the deal and pay your downpayment on the property.
Have an Exit Strategy
If things don’t go according to plan then you need to have an exit strategy. You should plan ahead for certain scenarios where you will sell the property during construction if necessary or is case the developer does not fulfill their promises then what options would you have. If you follow the steps mentioned above you would avoid coming to this point as you already know what you were getting into.