7 Steps to Buying Your First Off-Plan Property in Dubai from Abroad

Dubai’s real estate market gives many investors opportunities to invest in off-plan projects. International buyers who plan to invest should know the details of the buying process. This guide will explain how to acquire an off-plan property in Dubai from overseas in a simple way.

Steps of Buying Your First Off-Plan Property in Dubai

To make your first off-plan property purchase in Dubai from abroad, the following are the steps to make it a seamless experience:

Define Your Property Requirements 

Set your investment goals first before you start the buying journey. Set your goals for return, figure out your budget, choose a location and decide on any specific characteristics your home should have. Look into developers and projects that fit the qualities you have set. Once this step is done, you start looking for homes in suitable areas.

Engage a Reputable Real Estate Agent 

You should always rely on an experienced and trusted real estate agent during the process. A skilled agent is aware of the Dubai property market and has built connections with developers. They act on your behalf and direct you through all of the investment’s phases, starting from contract signing and ending with handover. They will share listings that meet your criteria and your budget and give you updates regularly. Your agent must be registered with the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA).

Shortlist and Evaluate Properties 

The real estate agent will bring you a selection of off-plan options that suit your needs. Make sure to review this information very carefully. Many developers in Dubai make mock-up units or virtual tours available so you can see what the facilities, amenities, sizes and layouts of their off-plan properties are like. It gives you a clear picture of what the final project will look like.

Reserve Your Chosen Unit 

Once you have selected a specific unit from the shortlisted projects, you proceed with its reservation. This involves formalising the intent to purchase through a virtual meeting or via your agent at the developer's sales office. To secure the property, you must pay an initial booking deposit. The amount of this deposit, a percentage of the total property price, varies by developer. Concurrently, you will sign a booking form and the initial Sale and Purchase Agreement (SPA). Your real estate agent's expertise can be instrumental in negotiating favourable terms for your off-plan investment.

Submit the Down Payment and Pay DLD Fees 

Following the execution of the booking form and payment of initial fees, you will submit the first instalment or down payment as stipulated in your selected payment plan. Also, you are required to pay a DLD fee, which amounts to 4% of the total property price, along with an administrative fee of AED 40. While legally the DLD fee is shared equally between the buyer and seller, in most off-plan transactions, the buyer bears the entire amount. This payment ensures your purchase is officially registered with the government. All payments must be directed into an escrow account provided by the developer. You can verify the legitimacy of this escrow account through the DLD's official website.

Sign the Sale and Purchase Agreement (SPA) 

The Sales and Purchase Agreement (SPA) is an essential legal document. It provides a complete outline of the transaction. This includes the property's value, precise unit specifications, the agreed payment plan, and projected completion dates. Developers are obliged to provide you with the SPA, irrespective of your residency. An authorised signatory from the developer's side must also execute the document. It is strongly advised to seek independent legal counsel before signing the SPA to ensure a complete understanding of all terms and conditions and to verify all relevant details, including the developer's credentials and property specifics. This agreement must also be formally registered with the DLD.

Manage Regular Instalments and Handover 

As per your signed SPA and agreed payment plan, you will make regular instalment payments until the property's completion. As the project approaches its handover date, the developer will issue a completion notification. Upon settling the final payment due at handover, you and the developer will schedule a property inspection. You may conduct this inspection personally or engage a professional inspection company, accompanied by your real estate agent. After a thorough and satisfactory inspection, the developer will formally hand over your property, marking the successful completion of your off-plan purchase.

Conclusion

Investing in Dubai's off-plan property market offers a strategic pathway to asset acquisition. By diligently following these seven steps and engaging with reputable professionals, international buyers can navigate the process effectively. Thorough preparation and adherence to legal requirements are key to a secure and successful off-plan property investment in Dubai.

Invest in Dubai's off-plan property market with confidence. Contact us today to start your journey.
 

Related blog: Step-by-Step Guide for Beginners Investing in Off-Plan Property