Offplan Properties in Dubai
Dubai’s property market meets the needs and varying preferences of investors, in addition to keeping up with real estate trends, such as the lookout for eco-friendly properties for sustainable living.
The Emirate’s real estate landscape is ever-evolving, with new projects delivered and new communities established regularly. From commercial to residential developments, ready properties and offplan properties, affordable options and high-end ones, all investors can find plentiful options fit for their investment purposes.
So, what is an offplan property? Why are offplan investments gaining traction from investors? What are the advantages of buying offplan units? And what is the process of buying one? Continue reading this article to learn the answers and more.
Offplan Properties
In terms of readiness, there are two types of properties: the ready properties and the offplan properties. So, what is an offplan property?
This property type refers to property units that are still in the construction phase or planning stage. Meaning that they are not completed.
On the other hand, ready properties, as indicated by the name, are ready for immediate occupancy since their construction is complete.
Benefits of Buying Offplan Properties
Many areas in Dubai provide both property types as they appeal to investors for different reasons; those who are purchasing an apartment or villa for personal use lean towards the ready type, so they can move into the property shortly.
However, if the purchase is intended as an investment plan, investors prefer the offplan properties for various reasons, and they are as follows:
- Offplan properties in Dubai cost less than ready properties, and developers offer more flexible payment plans with the offplan units, giving investors the benefit of financial practicality and flexibility.
- Investments in offplan properties promise great appreciation over time, high capital gains, and significant rental yields—all are encouraging factors for buyers who purchase properties for investment purposes rather than personal use.
- Regulations and laws are implemented to protect inventors’ interests.
- New offplan projects in Dubai are constantly delivered, creating a diverse array of options for buyers in key areas of the Emirate—affordable and luxury.
The Process of Buying Offplan Properties in Dubai
Now that it is clear what an offplan property is, below is the process of buying offplan properties in Dubai. It is similar to the purchasing process for ready-properties, with some adjustments catering to this specific property type.
Here is the buying process for offplan units in simple steps:
- Decide on Budget
Specifying a budget will narrow down your residential options, so the search becomes more focused. Additionally, it is essential for effective financial planning.
When buying offplan properties, the budget should account for down payment, instalments, and legal charges. Down payment and instalments differ according to the developer, the project, and the payment plan.
- Decide on the Particulars of the Property
Before searching for a property, it is essential to work out the specifics you want in a villa or an apartment. This is especially important with offplan properties because investors cannot see the property or visit it physically.
These details include but are not limited to layout, size, interior design, tiles, and fixtures. Also, consider your preferred location, community, and area.
In this stage of property search, it is recommended to work with a real estate agent to gain valuable insights regarding the market, available properties, prices and deals, developers, and much more.
- Obtain All Project Details and Research the Developer
Whether or not with the assistance of an agent, investors in offplan properties must obtain as much information as possible about the property they aim to purchase.
This is of great significance because buyers only depend on the property’s floor plan for offplan units. So, obtaining as much detail as possible is essential to visualising the residential property one is buying.
Additionally, research the developer to ensure it is well-reputable and trustworthy. Such search typically includes previous projects, their handover dates, and court cases.
- Pick a Payment Plan and Carry Out Legal Procedures
After choosing a property, pick a payment plan suitable for your budget and financial flexibility. Then, the buying process of the offplan property reaches its final stage with finalising legal procedures.
This final step includes signing a reservation form and the Sales and Purchase Agreement (SPA), transferring the down payment through an escrow account, and paying a brokerage commission to the real estate agent.
Mortgages are a common way of financing real estate investments; however, they are not available for offplan properties in Dubai. Banks do not fund properties that are still under construction, as mortgages are only granted when the buyer has the property papers, which serve as collateral. In the case of offplan properties, property papers cannot be accessed by the bank or the buyer as long as the development is under construction.
It is worth noting that some banks will finance an offplan purchase only from developers they approve. But even in these cases, the loan-to-value ratio is set at 50%. Meaning that the bank will only fund half the property price if the buyer can fund the remaining cost.
Offplan Projects in JVC
There is a wide range of new offplan projects in Dubai, including offplan projects in JVC. Jumeirah Village Circle, also known as JVC, is a renowned residential area, unique for its affordable yet elegant apartments and villas. The area is located in new Dubai, in proximity to Jumeirah Village Triangle (JVT) and Al Barsha South.
Thanks to such a location, residents can easily access Dubai International Airport, Downtown Dubai, Dubai Media City, Internet City, and Dubai Marina. And they can smoothly commute to schools, nurseries, healthcare facilities, entertainment destinations, and malls due to JVC’s location and available public transportation.
Ready and offplan properties in JVC are distinct for their excellent facilities and their ambiance of serene gardens, making them one of the top options for buyers.
- Offplan Properties in JVC by LEOS
Discover offplan properties in JVC by LEOS for an exceptional living experience found nowhere else. LEOS launched Hadley Heights, a residential community located in JVC, and it is home to LEOS elegant apartments—practical and functional yet elegant and contemporary.
Hadley Heights’ 1- and 2-bedroom apartments feature contemporary interior designs, practical kitchens, spacious bedrooms, high ceilings, and generous storage spaces, in addition to services and world-class amenities including landscaped gardens, private parking, swimming pools, gymnasiums, a co-working centre, 24-hour security, and many more.
Discover offplan properties in JVC by LEOS now for more information.
