The value of off-plan sales deals in Dubai reached its highest level in over eight years.
In the third quarter of 2021 alone, the Dubai off-plan market recorded 6,909 transactions worth Dh13.5 billion, making it the highest off-plan sales in 8 years. According to Lynnette Sacchetto, the director of research and data at Property Finder, “Off-plan sales started to increase considerably in 2021 and the amount of sales transactions between secondary and off-plan are now about 50/50. This is evident that investors see the value in investing in the future of Dubai”. Furthermore, in the third quarter of 2021, Dubai’s real estate market achieved a new milestone, as it became the best third quarter in the emirate’s history in terms of transaction value. The Property Finder’s latest figures for the third quarter of 2021 show that the total value of transactions reached Dh42.35 billion in 15,926 transactions. The volume of sales transactions grew 85.36% in the third quarter of 2021 compared to the third quarter of 2020, while the value increased 135.4%, making it the best third quarter for sale transactions volume in over 11 years. When compared to pre-covid periods such as Q3 2019, Q3 2021 showed a 64.51% increase in volume and a 138.81% increase in value. During the Q3 of 2021, the off-plan market transacted 6,909 properties for a total of Dh13.5 billion, while the secondary market transacted 9,017 properties worth a total of Dh28.85 billion in terms of volume of transactions. When compared to Q2 2021, the volume of off-plan transactions climbed 14.67%, while the volume of secondary/ready property sales declined 6.02%. The value of off-the-plan sales climbed by 47.11%, while the value of secondary sales increased by 4.24%. Additionally, due to the spectacular surge in monthly sales transactions and their valuations leading up to Expo 2020, Dubai real estate transactions surpassed Dh100 billion year till September, making it the highest transaction value since 2017. “Mortgage transactions are at an all-time high year-to-date, breaking all records, and the year hasn’t ended yet,” said Lynnette Sacchetto. Why you should invest in Dubai off-plan properties: Purchasing an off-plan house in Dubai has numerous advantages for an investor or someone looking to relocate in the near future. To begin with, off-plan properties are much less expensive than comparable properties in the area. This is particularly appealing to investors who want to buy inexpensively at a below-market-value (BMV) price and sell for a higher price, potentially earning thousands of dollars! Investors have made their fortunes by profiting from increasing appreciation as the project nears completion. As a bonus, any upfront fees are typically lower and more reasonable, which helps developers sell their off-plan property portfolios faster. Quick pros of off-plan investing: Off-plan properties in Dubai are at BMV-discounted rates You can benefit from low-interest financing and mortgages Smaller deposits and lower upfront fees. Property can often be customized to your liking. Properties are new and you will be the first occupant. With the correct property and market conditions, you enjoy a capital appreciation on your property. Learn more on how to invest in off-plan properties here Start building your personal wealth and earn passive income with intelligent real estate investing. Book a consultation today.
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.
Buying off-plan property in Dubai? Here are important things to know before investing in Dubai off-plan properties.
Purchasing an off-the-plan property may not appear to be the most apparent option, but with adequate research, better understanding, and smart investing, off-the-plan properties can yield higher returns than completed properties. Here is a complete guide to snatching the best off-plan deal in Dubai. But first, you need to understand what an off-plan property is. What is an off-plan property? Off-plan properties are unbuilt properties or properties that are in the process of being developed, purchased directly from the developer, or, in some cases, from the first owner or resellers. As a buyer, you are relying on renderings, floorplans, and virtual tours to help you decide whether this apartment is the correct one for you because you don’t have a completed property to base your decision on. If the buyer purchases directly from the developer at the time of purchase, the buyer usually pays a 10% to 20% advance and signs a SPA (Sales Purchase Agreement). Depending on which developer, the rest of the payment can and does vary, but is generally related to construction and handover. How to buy an off-plan property in Dubai Now that you know the meaning of off-plan property, you must understand the process. If the process is not clear and followed properly, it may cause concern, so we would like to elaborate on the following steps. Choose your investment: If you’re an investor or a house buyer, it is critical to check your budget and preferences with market availability in various projects when picking an off-plan property. This is where having a reliable and knowledgeable agent can help you get the most out of your investment. Know the project: Your next step will be to visit the developer’s sales boutique to gain a thorough grasp of the project’s benefits, as well as every aspect of your future property and project, using demonstration materials such as a Project Miniature Model, Brochures, or Virtual Tour. Some developers will also offer a Show Property that you can visit. Booking: After you’ve decided on a unit type, you’ll need to pay a booking fee to ensure that it’s taken off the list of available units for others. The majority of developers want a 5-10% booking fee in addition to signing the booking form for the unit of choice. Make your Down Payment and DLD Fees – After you complete the booking procedure, you will be asked to complete your first installment: “Down payment,” as well as pay the Government Registration Fees: normally 4%, however, some developers give DLD exemptions or other forms of discount. Sign the SPA: Whether you live in the country or not, the developer will send you the “Sales and Purchase Agreement” for your signature before sending you the dually signed copy after it has been signed by the developer’s authorized signatory. Oqood registration: This step is critical to ensure that your purchase is already registered with the government authorities. Once you’ve completed this step, you should receive your original contract of sale from the Dubai Land Department. Pay Due Installments: As part of the agreed-upon payment plan, you will be required to pay a certain percentage of the purchase price before your property is handed over. Completion Notice: As specified in the SPA, the developer is required to deliver the project and finish the construction before sending the completion notice to all clients at the same time. Inspection & Handover: Once you’ve made the required handover payment, you’ll be invited to examine your apartment on a specific date, in collaboration with the developer’s handover team. If you can hire a professional snagging team to accomplish this stage, it will make a significant difference in the condition and quality of your unit for future use. The benefits of purchasing a property off-plan Best Bargain: Purchasing an off-the-plan property allows investors to obtain a purchase price as soon as feasible and at the lowest possible price. Payment plans for off-plan properties are usually quite flexible and friendly. A property can be officially booked in your name with as little as a 5-10% deposit, followed by a similar figure within the following 30 days as you sign your SPA (Sales Purchase Agreement) with the developer. Eventually, the majority of the payment is deferred until the project is completed, providing an excellent opportunity for investors to buy a little more time and save up the full unit cost, or at the very least reduce the length of their mortgage repayments. Great Return On Investment: For intelligent buyers searching for reduced initial outlays and higher long-term financial returns, off-plan properties present excellent investment opportunities. Off-the-plan units are frequently sold below market value (BMV), and will naturally increase in value when the project is completed allowing investors to resell the unit at a significantly higher price once it is built. Additionally, investors can typically make a significant profit by selling off their off-plan property contracts during construction if the market has fared well, and there’s high demand for the project. Better affordability: Payment plans for off-plan properties can and do vary from developer to developer. The investment required is relatively cheap, with some developers demanding just a 5% down payment and the remainder tied to completion. Furthermore, new construction projects developed by reputable developers are finished to the highest standards, with a variety of modern amenities that save money in the long term. Increased savings in the years after the handover are possible thanks to the use of energy-efficient building practices, environmentally friendly features, and new technological breakthroughs. Lastly, Purchasing a brand new home can also help you avoid additional costs such as renovations and repairs that may be required if you purchase a property on the secondary market that hasn’t been well cared for by the previous owner. Greater choice of property units: When acquiring an off-plan unit, you will have access to the whole inventory of a building. This gives you the best opportunity to select the exact unit type you desire. By the time a project is finished, a