It’s an exciting time for Dubai’s residential property market.
Over the past few years, demand for villas and apartments in the Emirate has sky-rocketed – leading to unprecedented growth of 18% in sales prices and 26% in rental values (according to research from Deloitte).
The volume of sales set a new record last year and although further growth is expected in 2024, it’s likely to be at a more sustainable rate. One sector of the residential market that’s doing particularly well is off-plan property, with sales of off-plan apartments growing an astonishing 78% in 2023.
Having moved to Dubai three years ago to expand Track Capital’s global presence and access the local market, I’ve personally witnessed as investor interest in off-plan properties has quickly ramped up (no doubt helped by the highest rental yields in years). The country’s real estate developers are keen to tap into the demand, too, with a further 65,000 properties expected this year.
Now, if you’re unfamiliar with off-plan property in Dubai, this guide is for you.
We’ll explain how to buy off-plan property in Dubai, we’ll explore the top five areas for a property in Dubai, we’ll list the best off-plan projects for sale at the moment, and we’ll answer five of your most frequently asked questions.
What is off-plan property in Dubai?
Simply, off-plan properties in Dubai are purchased directly from a developer before they’re completed. This being Dubai, generally, most developers are either building villas or apartment blocks, so going “off-plan” is your chance to grab a stunning, modern property before it hits the open market.
Off-plan property investment is a well-established strategy in the UK, and it’s quickly becoming the go-to method for investors in Dubai, too. There are a few key reasons for that:
- Capital appreciation: Such is the pace of Dubai’s property market over the last year, an off-plan property can increase in value from the time of purchase to completion, offering investors the chance to sell and generate significant gains straight away.
- Early-bird deals: Dubai’s developers often encourage off-plan purchases with incentives like discounted prices, attractive post-handover payment plans, and furniture packs.
- Residency visas: The UAE government has loosened visa rules in recent years, and now even offers the opportunity for property buyers to get a two-year residency permit if they purchase a property worth 750,000 AED (currently £160,000). There’s also an option for a 10-year permit for purchases of more than 2,000,000 AED (just over £427,000). Ideal if you’re considering buying a personal or holiday home.
- High rental demand: If you’re more interested in a buy-to-let, then you’ll be glad to know that rental demand in Dubai is huge – with the expat-dominated populace and tourists all looking for high-quality properties. One advantage of going off-plan is that, given the discounted purchase prices (see above), you can achieve stronger yields than properties purchased on the secondary market.
If you’re looking to learn a bit more, I discuss all of this (in detail) on our podcast episode about Dubai, which you can watch below:
How to buy off-plan property in Dubai?
Buying an off-plan property in Dubai is a relatively straightforward process.
There are some things which differ from the UK, but nothing drastic. Below, I’ve outlined the typical step-by-step process involved:
- Research and choose a reputable developer: We always recommend properly reviewing a developer’s portfolio in the UK, and it’s no different abroad either. There are plenty of developers in Dubai, some of the biggest include Emaar Properties, Azizi Developments, and Damac Properties. These are extremely reputable companies with a strong track record of successful projects.
- Find a property: Once you’ve found a developer, you can look through their upcoming projects to see what off-plan properties they have available. This information may not be publicly available so you’ll often need to work with an agent (like ourselves) to get access. Some will charge for their services, however we do not.
- Pro tip: If you’re purchasing as a buy-to-let investment, look for factors that will give your property the edge over others in the rental market (location, amenities, etc).
- Understand the payment plan: Off-plan properties in Dubai often come with attractive payment plans, allowing investors to pay a deposit and then finalise the balance in stages or upon completion.
- Legalities and paperwork: For the legal aspects of the purchase, it’s smart to work with a solicitor familiar with the Dubai market. Ensure the Sale and Purchase Agreement (SPA) clearly outlines all terms and conditions, including payment plans, completion dates, and any penalties for delays. You’ll also want to check your deposit is protected in the (unlikely) event that the project stalls or collapses.
- Registration with Dubai Land Department (DLD): Once the legalities are done, you need to register the transaction with the Dubai Land Department. This involves paying a registration fee and ensuring all paperwork is in order. The DLD provides security and legal recognition to your investment, offering peace of mind.
- Stay informed: After securing your investment, it’s important to stay informed about the construction progress and any developments in the local property market.
- Pay final balance on completion: Finally, once construction is complete, the developer will request the final balance. Cash purchases are common in Dubai, but it is possible to secure a mortgage to cover the final payment, should you wish – just be sure to get pre-approval and everything set up well in advance.
Off-plan properties for sale in Dubai
You can head to our Dubai portfolio to check out the latest opportunities. But here’s a quick round-up of the most recent off-plan properties:
How we can help you buy off-plan property in Dubai
Our role is to help buyers from the UK and abroad to purchase Dubai properties safely and securely.
To do this, we visit all of the latest projects in Dubai so we know them inside out. We can then match them with your preferences to find the perfect property for you. Furthermore, we’ve built strong relationships with the developers, giving us exclusive access to new projects and great discounts for our clients.
Over the past few years, I’ve guided hundreds of buyers through the process, from start to finish, from our office in Dubai Marina. Among our clients, it’s now more common to target new off-plan projects than the resale market, due to the ease of access we can offer.
In short, we can help you with everything from:
- Choosing the right developer
- Finding the perfect location
- The purchase process
- Securing a mortgage
- Post-sale construction updates
- Post-completion property management
All of which comes at no cost to you.
So, if you’re considering purchasing an off-plan property in Dubai, get in touch for a free consultation.
FAQs
Can I purchase from abroad?
Yes, foreign nationals can purchase property in Dubai from abroad. Dubai’s property market is open to international investors, and transactions can often be completed with the assistance of a reputable solicitor, even if you’re not physically present.
Can I purchase using a mortgage?
Yes, you can purchase off-plan property in Dubai using a mortgage. Some banks may be hesitant to finance off-plan purchases directly, so it’s more common to secure a mortgage upon completion of the property. Typically, you can use the developer’s payment plan during the construction phase and then use a mortgage for the remaining balance once it’s complete.
Is it safe to buy off-plan in Dubai?
Buying off-plan in Dubai is generally considered safe, thanks to strict regulations and protections for buyers put in place by the Dubai Land Department. However, you can reduce risk even further by only working with reputable developers and thoroughly reading your contract terms.
What types of off-plan properties should I expect?
It depends on the area. In Downtown Dubai you’ll most likely find luxury apartments and townhouses on offer, whereas villas and larger estates are more common further out. Wherever you go, modern facilities and world-class amenities, like gyms, pools and retail spaces, are within easy reach.
Can I sell my off-plan property in Dubai?
Yes, investors can sell their off-plan property in Dubai before completion. However, developers usually require a certain percentage of the property to be paid off before allowing a sale, and some charge an administrative fee for the transfer.
