How to Sell Your Off-Plan Property in Dubai
Buying off-plan properties is one of the most intelligent ways to invest in real estate. Intelligent buyers searching for reduced initial outlays with both higher long-term or short-term ROI usually go for off-plan properties. When an off-plan unit has significantly increased in value, investors can now resell the unit at a significantly higher price even whilst still under construction. WHEN CAN YOU SELL MY OFF-PLAN PROPERTY? After gaining some value on your off-plan investment, it’s important to know the rules and regulations before attempting to sell your off-plan property. Several measures have been put in place to ensure that the Dubai market is a safe and secure place to invest. One of these measures is the minimum payment by the first seller. This has a direct influence on buyers looking to sell their off-plan property before it is completed. For instance, Emaar Properties, Dubai’s largest developer, now demands owners to pay off a minimum of 40% of their off-plan property before it can be sold to a new owner. Although this 40% figure varies from developer to developer, therefore it’s important to double-check with each one. The procedure of selling an off-plan property is comparable to selling a ready property once the minimum repayment requirement has been fulfilled. Buyers and sellers agree on a price and terms, sign contracts, and apply for a NOC, which allows the new buyer to register with the developer and take over all outstanding payments once the transfer is complete. It’s also worth mentioning that, the new buyer no longer have to pay for the 4% DLD as this has already been paid for by the first buyer NOW WHAT? Now that you know the regulations governing the selling of off-plan properties, below are the steps to ensure a successful transaction. Choosing an agent: Finding a reputable real estate agent is the first step. It is preferable to seek out an expert who is more knowledgeable about Dubai, and there’s no better choice than The Property Investor. Get your documents ready: You must have all of the necessary documentation in order to sell your off-plan Dubai property. Some documents such as NOC will also be required, this will allow the new buyer to register the developer. Contract signing: Once the buyer is found, a contract is signed between the buyer and the seller. All necessary documents including the NOC will be handed over to the new owner. Start building your personal wealth and earn passive income with intelligent real estate investing. Book a consultation today.
UAE rent prices rank fourth highest in the world, and what it means for investors.
According to a recent study by money.co.uk, UAE rent prices are ranked fourth-highest in the world just after Hong Kong, Singapore, and Qatar respectively. This may not come as a shocking result, nevertheless, this result shows how valuable real estate investment in the UAE can be. The report also showed that UAE residents spend 39.85% of their monthly spending on rent, with a three-bedroom property in the UAE costing an average of $1,921 (Dh7,054) per month for rent. Additionally, the survey also found that the monthly cost of maintaining a family of four is approximately $2,901. Furthermore, the research data compared the average cost of renting a 3-bedroom property across over 50 global destinations and found that even though Dubai residents spend $1,921 on rent per month, they get the best value for money with bigger apartments. The UAE property market has been showing great signs of recovery following the three-year oil price slump that began in 2014. This is further fuelled by people who are upgrading to larger homes with outdoor amenities amid a remote working and learning trend sparked by the Covid-19 pandemic. What does this mean for investors? The high rental income may be a good reason to invest in Dubai properties, however, there are several other reasons as well. For instance, the UAE Government has put in place several initiatives such as; residency permits for retirees and remote workers, the 10-year golden visa program, and the recent slash of the cost of setting up a business in Abu Dhabi. These initiatives trigger an inflow of ex-pats and investors alike, thereby increasing housing demand. Would you like to invest in Dubai properties? Click here to book a consultation.