When investing in Dubai, what could be better than real estate? The real-estate market of UAE’s metropolitan city, Dubai, is constantly rising with its high-tech and comfortable residential, commercial, and business properties. Though Dubai’s real-estate market provides you with a variety of investment opportunities, nothing comes close to off plan properties.
Yes, buying off plan properties is quite a trend in Dubai. People with all kinds of backgrounds and budgets invest in Dubai’s off plan properties; however, we cannot neglect the fact that they have accumulated a lot of interest over time. That’s right, by the time you reach the stage where you have to pay the remaining amount to the developer, it has already garnered a significant amount of interest. Due to that, many people resell their off plan properties when they start gaining some value before the completion of the project.
A Step-by-Step Guide to Selling Your off plan Property in Dubai
If you’re an investor who’s looking to sell his/her off plan property in Dubai, please look no further. It’s a simple process; however, there are a few things that you need to keep in mind when doing so. Let’s dig into the details and touch base with the different steps of selling off plan properties in Dubai.
What’s the right time to sell an off plan property?
As you know, one of the drawbacks of buying an off plan property is the delayed return on investment (ROI). That’s right. When it comes to off plan properties, you don’t receive an immediate return on investment; thus, selling your off plan property right after purchasing it isn’t a sensible course of action.
It is recommended to let the property gain some value before selling it out so that you can be in profit. Not to forget, a lot of developers have restrictions on reselling the property. When selling an off plan property early on, you may need to check the developer’s restrictions and resell only if you fulfill them all.
How to Resell Your off plan Property Before the Completion of the Project?
Not everyone wants to wait for the completion of the project before reselling the off plan property. As mentioned, a lot of people resell their off plan properties the moment projects start gaining some value. Besides that, fulfilling the developer’s term when selling an off plan property before the completion of the project is a must. For example, some developers demand 40-50% payment before reselling the off plan property.
Thus, if you’ve purchased the off plan property with a 10-20% down payment and now want to resell your property, know that you cannot do it. Fulfilling the terms of the developer is a must and once done, only then you’ll be able to resell your off plan property. In other words, you can treat it like an eligibility criterion for reselling properties.
How do you sell an off plan property in Dubai?
Once you know you’ve fulfilled the terms and conditions of the developer, you can then contact an off plan property-selling company in Dubai. They’ll make the process easier by helping you out with finding a seller and fulfilling the legal parameters that cover off plan properties in Dubai.
The process of reselling an off plan property in Dubai is similar to that of selling a completed property. It requires you to locate a buyer first who further needs to obtain an NOC (No Objection Certificate) from the developer to purchase your property. After that, price negotiations begin and once both parties are settled on the price and terms, the property is sold.
What are the Legal Parameters Around off plan Properties in Dubai?
When buying off plan properties in Dubai, the Dubai Land Department (DLD) charges a small registration fee. Furthermore, the investor is required to pay around 4% of the total amount to the developer when the off plan property is transferred to the investor. The same goes for reselling your off plan property. The DLD registration fee remains the same and the buyer is required to pay a similar amount at the time of transfer.
Apart from that, the buyer also needs to cover the charges of NOC. Also, it’s imperative to cover the tax requirements, in case they are any. We suggest you check the latest off plan properties in Dubai, especially the ones that have been resold to get a better idea of the process and the legal parameters that cover it. If not, you can simply get in touch with a real estate agent and they can break down the process for you.
In Conclusion:
In the world of real estate, buying as well as selling properties is quite common. Since off plan properties aren’t completed when purchased, they can be a bit different. However, the process of reselling them remains the same except for the NOC that needs to be obtained from the developer. Rest assured, it’s a simple process that won’t make any hassle in your day-to-day life.
