The property market in Dubai is considered rather safe for investors. Tax-free environment, low risk of fraud, a high ROI, abundant choices – these are some of the main reasons why it attracts investors from different regions. Another attraction that they have in this emirate is the launch of several new residential projects. This allows them to add more listings to their inventory as off-plan properties are available at comparatively low rates.
Apart from investors, offers for off-plan properties are also suitable for end-users. This allows them to buy an otherwise extremely expensive waterfront property at rather economical rates with a convenient payment plan. Having said that, if you’re a new investor or a buyer looking for off-plan properties in Dubai, it’s important that you do your research before venturing into the market. A single mistake can cost you a lot in this regard.
To help you make an informed decision, we have jotted down some common mistakes people make when buying off-plan properties so that you can steer clear of them. Read on to know more!
1. Making a Hasty Decision
Investing in the Dubai property market comes with its share of risks. And, when it comes to off-plan properties, the risk level increases a little more because these projects are still in the development stages. Therefore, it’s recommended to take your time and make a wise choice.
Do not get lured by seemingly best deals for these properties. Also, remember the fact that the marketers and agents will also pressurise you to buy the unit you had shown interest in. Even if they say that there is a huge line of investors and buyers willing to buy the said property, do not give in until you are 100% sure.
2. Not Verifying Details
While verifying details is important for every type of investment, it becomes even more crucial when it comes to off-plan properties. There can be an untimely delay in the construction of these projects. Or the project may altogether get cancelled as well. This is certainly a situation you wouldn’t want to be in. It takes a lot of effort and time to arrange funds to buy a property, and getting to know in the end that the project has been shelved isn’t exactly a favourable situation.
In case the project gets cancelled, you will only get your invested amount back if there’s an escrow account. Now, how to make sure the project has this account? Simply be verifying details. Take some time out and know about the development firm and the projects they have previously handled. Furthermore, verify details about the floorplan, layout, available amenities, and other vital aspects of the project.
3. Not Setting the Budget
It’s already established above that off-plan properties are available at a relatively low price. However, this doesn’t imply that there’s no requirement to set a budget for them.
You cannot excel in the real estate sector if you don’t know how to manage your budget. As a matter of fact, the primary step in the process to buy a property is setting the budget. If you’re not doing it right, you are laying the wrong foundation.
Now, it’s not less than a challenge to set the budget. You need to consider various factors when doing this. Furthermore, account for every expense associated with buying the property, apart from its actual cost.
4. Choosing the Wrong Neighbourhood
You may have found the perfect home that comes with every possible facility you had desired, but if it is located in an area that’s too far away from your workplace or isn’t well-connected, buying it can prove to be a mistake.
As a matter of fact, it’s considered one of the top factors that you must consider when looking for a property, be it off-plan or ready. If you intend to settle in the purchased unit once it is completed, make sure it’s easily accessible and has basic facilities and landmarks located nearby. Furthermore, also know about the ROI the residential projects in the selected area offer.
There are many neighbourhoods in Dubai that can be suitable for you, whether you are looking for an investment or residential purposes. For example, you can choose Dubai Marina to buy an off-plan property. It is home to some of the top tourist destinations in the emirate, along with several high-rise residential projects, including Stella Maris Tower. Or you can choose Dubai Hills Estate. The options are abundant.
We hope that knowing these mistakes will help you avoid them and get the best off-plan property in Dubai that’s suitable for you in every way possible.