1 / Consulting before buying
It is advisable for those wishing to acquire an off plan property to ask for advice from a real estate consultancy licensed by the regulators. Here he will get complete data about the specifications of the property that have been agreed upon. Real estate consultancy in general is an important step for the buyer to make a good deal, especially in a market of too many choices, and many real estate brands, as is the case in the UAE market.
2 / The developer’sreputation
The off plan property buyer should search for the real estate developer with a good reputation. In Dubai, it is very easy to know everything about any real estate developer. Investors have many channels and multiple tools through which they can verify the developer's reputation as well as their history of construction, delivery and prices.
The quality of the real estate developer and his history help in clarifying everything such as his commitment to completing projects on time, as well as having an “Escrow Account”. The Dubai Land Department keep a special register called “Real Estate Developers Registry”, with the names of the licensed real estate developers. Developers are not allowed to practice unless they are registered and licensed by DLD so as to comply with conditions.
For example, the Escrow Account Law issued in 2007, is a financial tool to preserve the rights of all parties, through which the department maintains real estate developers funds not delivered to them unless the property is delivered to the buyer. Those funds remain in the escrow account until the hand out of the final unit.
3 / Return on investment
Return on investment ROI, is one of the most important considerations that an investor must keep in mind when buying a property off plan. Return on investment varies according to market conditions. With ROI ratio of 7 to 9%, the emirate of Dubai is one of the cities with the highest return on real estate investment in the world.
4 / The project site
It is important to buy a property in a privileged location, with all the services that the residents need, including schools, hospitals, and shopping centers. It is preferred to be close to a suitable road network that connects well with the rest of the city. The floor in which the intended unit is located and the view it provides, must also be taken into consideration.
Therefore, the buyer is advised to make sure of his good choice of the place, before signing the contract, and know all the details of the property, in terms of its location and proximity to public transportation, schools or universities, hospitals, and markets. They are advised to visit the project site and ask for details on the spot from the residents .
5 / Quality of the property
The quality of the property is of great importance when buying off plan. This includes the quality of the compound or the location in which the property is built and the availability of important services. Attention must be paid to the finishing and the materials used in construction. Quality may not comply with what we see or hear from sales agents, brochures or images. Such hints can be avoided by visiting other projects done by the same developer.
6 / Completion rate
The ability of the real estate developer to deliver the property, according to the timelines set before starting construction works, is an important determinant when choosing the real estate developer to buy a residential unit. The shorter the time period between the promised date and hand out date, the greater the developer’s reliability, which is taken in consideration when buying off plan property.
It is necessary, at this point, to ensure the credibility of the real estate management companies and the rates of achievement, by tracking their previous projects and knowing whether they are committed to delivering the housing project on time, or there are delays in handing units out, if any. It is advisable to visit the building site to check the progress of work.
It is a must to make sure of the performance and reputation of the real estate management company, as developers sometimes cancel the project and do not fully develop it, which results in some problems in the process of refunding the paid amount.
7 / Payment plans
The buyer must specify the price of the property agreed upon, and the payment plan, as real estate developers offer many payment plans that sometimes extend to 10 years. It should be noted that real estate developers add the interests to the selling price, and thus the longer the payment plan, the higher the cost borne by the buyer will be. This means that it is necessary to mention the expected completion date of the project in the off plan real estate purchase agreement, and the compensation incurred by the developer in case of any delay.
The property price must not be paid in full before the completion of the construction works and the unit hand out. It is also advisable to pay in installments as the construction works is still in progress.
8 / After-sales service
After-sales service is an essential part of real estate assets management, and it boosts customer confidence when they are freed from procedures and routine, such as clearing property documents after purchasing, or ownership changing and so on.
Aldoulah, who provides free real estate consultations to clients, pointed out that there are 5 main aspects that encourage real estate investors to buy a property off plan, most notably its low price and flexible payment plans compared to ready-to-use properties. The value of a property increases upon project completion, which helps in good sale returns.
Aldoulah added that one of the most encouraging motives to buy an off plan property is high rental return, in addition to the availability of strict laws to protect the rights of real estate buyers and investors. That also provides several options for new real estate projects being studied or incomplete.
The UAE provides an encouraging legislative environment to protect the rights of buyers and real estate investors. Projects are usually not subject to delays which boosts confidence in the local market. This means that the rules must be studied and reviewed well to know the rights of all parties and how to abide to the rules that fulfill each party's obligations.
About "On Plan"
Real estate company, On Plan, was established in August of 2019 in Dubai by Ahmed Aldoulah in partnership with Mohammed Al-Otaibah. They managed to keep investors’ confidence in a record time period, through social media. They raise the individuals’ and investors’ awareness on the best ways to share and lead competitiveness in the real estate market, capturing available opportunities and avoiding risks in the real estate sector. They also provided free consultations, real estate ideas and vision that raise awareness in the real estate market.
The company that won several sales awards from major real estate developers,focuses on projects under construction.
On Plan vision is to become the number one real estate company in Dubai .
About Ahmed Aldoulah:
The real estate consultant Ahmed Aldoulah is the chairman of "On Plan" real estate company. He has got deep experience in the UAE real estate sector. He started his career in the Emirate of Sharjah, then moved to Dubai ,the world hub of ambitions that provides the best opportunities for entrepreneurs and businessmen, in chase of the city’s real estate sector of high competitiveness.
Aldoulah is a holder of the “ Intensive Real Estate Diploma” from the Emirate of Sharjah.
© Press Release 2021