Finding an Investment Property in Dubai
Some of the best investment opportunities in Dubai are found in off-plan real estate. Purchasing a property directly from the developer at an early stage in the construction process ensures that an investor maximizes his capital gains when selling the property on the secondary market. Zola Group has built strong ties with only the most reputable developers in Dubai to serve their clients’ off-plan property purchasing needs. Contact us for advice on purchasing your next investment property in Dubai.
Booking your Off-Plan Property
When purchasing an off-plan property directly from a developer, investors are required to submit a completed reservation form, along with a copy of their valid passport. The reservation form is a summary of the general terms and condition of the sales and purchase agreement, the payment schedule details and the personal details of parties to the contract. Every off-plan investment property in Dubai will require a reservation form.
To complete a reservation, an investor must pay a booking fee (typically between 5% to 15% of the total property price) to the developer, as well as a Oqood fee of 4%.
What is Oqood?
Oqood is a fee required by the Dubai government, which enables the developers to conduct and register off-plan sales transactions with the full knowledge and approval of Dubai Land Department (DLD). It allows the sale of an off-plan property to be a fully transparent and regulated process. It also protects the buyer from illegal practices, i.e. a developer selling the same unit to multiple people, and allows the developer to keep an accurate record of his properties with the DLD.
Sales and Purchase Agreement
Once the above steps have taken place a formal Sales and Purchase Agreement (SPA) will be drafted. The SPA is a contract similar to the reservation form and is used to commit the buyer and seller to the deal. It is common practice for developers to require that an investor pay up to 20 percent of the purchase price of the property prior to drafting this agreement, thus it is recommended to agree when this document will be signed at an early stage.
When purchasing off-plan investment property in Dubai from a developer, be sure the SPA includes the completion date and the compensation if the property is not completed by the date stipulated in the SPA. Additionally, if purchasing a property with furnishings or any other amenities, decide on an appropriate deadline for these features to be completed.
To complete the process of buying property in Dubai the buyer must transfer the deeds. For off-plan property purchases this is typically done at the developer’s office. The buyer must obtain financing and pay 100 percent of the property price at this point.
It is then normal protocol that the buyer inspects the property and makes a “snag list” of any issues that the developer must address.
For any questions concerning the purchase of property in Dubai, you may contact us here.
Zola Group Real Estate Services are available to local and international clients looking to take advantage of the highly rewarding property market in Dubai and the UAE. You're invited to contact our property consultants via email or phone to learn more about our specific services or to inquire about current real estate opportunities. To view current property listings Click Here.