New-build properties in Dubai – buying off-plan in Dubai

Almost all properties in Dubai currently available to buy are new-builds. The city’s expansion continues apace and tens of thousands of Dubai homes are currently under construction or will be soon. Buying off-plan in Dubai guarantees modern design and technology and offers a great opportunity to buy properties in Dubai.

The process of buying Dubai homes off-plan

Buying off-plan in Dubai means to purchase a property before the building has been completed. This can prove to be a cost-effective way of securing a Dubai home as the asking price is normally much lower than for completed properties. Dubai has a number of such opportunities due to the seemingly endless amount of developments being announced each week.

After deciding on which unit you wish to become your Dubai home you would be required to pay a 10% holding deposit. A contract will be drawn up which will detail when the remaining balance of your Dubai home must be paid. When buying off-plan in Dubai it is usual to pay between 10% and 20% of the purchase price of properties in Dubai every three months.

The build time can be anywhere up to three years so you should ask for an estimated completion date before you sign anything.

The market and types of property available off-plan in Dubai

Villas and apartments are the most common types of properties available off-plan in Dubai. These are modern, efficient units, most likely to be found within a large development of similar properties.

The market is strong at the minute with demand outstripping supply. As a result many developments marketed off-plan in Dubai are selling out off-plan within 48 hours of their release.

Some investors have bought a Dubai home off-plan and sold before the completion date at significant profits without ever paying the final installment. A property bought off-plan in Dubai can usually be resold during construction but to do this you must pay the developer a transfer fee of around 2%.

Such is the demand for properties, Dubai can hardly get units on the market quick enough.

Other points to note about buying properties off-plan in Dubai

Any money an investor pays for off-plan properties in Dubai goes into the developers’ accounts, effectively to fund the building process. The Dubai government requires developers wishing to sell even a single Dubai home to place 50% of the price of each unit in a bond. Therefore, if the developer were to suffer financial hardship the government would be holding enough money to get the project completed.

When buying off-plan in Dubai you should always assume the project will run over schedule and budget for the delay in completion of your Dubai home accordingly. Seek legal advice before committing to any off-plan properties. Dubai is a modern, vibrant city with off-plan opportunities for investors and emigrants alike.