Guide To Buying Property Directly From Real Estate Developers In Dubai

By Author: samana
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Whether you’re a real estate investor or just buying a house in Dubai, one way to ensure a hassle-free purchase and make a good profit is to purchase directly from real estate developers in Dubai. Here, we outline some of the benefits of buying property directly from developers along with the process.

Benefits of Purchasing Real Estate from the Developers

No Intermediaries: Not having a real estate agent saves money as there are no real estate agent fees.
Early Access: As a direct buyer you get early access. That means you get the best units and prices.
Payment Plans: If you are buying directly, you are often offered better and more flexible payment plans, so that you can buy your ideal property, with a relatively lower financial burden.
Quality Assurance: The property directly from the developer is of the best option because it’s constructed in compliance with Dubai's strict construction codes.
Warranty And Support: They offer a warranty, and after-sales service which ensures that the client is fully protected.

Selecting the Right Developer

This step ...
... is crucial when one is buying property in Dubai. Investigate the track record of the developer, their financial capability, and past performance in terms of the time they took to complete and handover their previous project. Choose a developer with a strong brand reputation, supported by positive feedback from other buyers.

Selecting the Appropriate Property

These span from villas in secure gated communities to stylish apartments in vibrant neighbourhoods. Assess the property based on its location, amenities, features, and prospects for further development.

How to Buy

The steps for directly purchasing a property from a developer in Dubai are as follows:

1. Signing the Booking Agreement:

- Finalize the property

- Sign a contract called the Offer To Purchase contract (OTP)

- Then pay the booking amount.

This process reserves the property under your name.

2. First Instalment Payment:

- You will be required to pay the first instalment or down payment (whichever applies under your selected payment plan.)

- You will also be required to pay the Dubai Land Department (DLD) registration fee and the Oqood fee.

3. SPA—Sales and Purchase Agreement:

- Once full payment is made, the developer will draw up a Sales and Purchase Agreement in your name. This document includes the terms and conditions of the purchase, payment schedules, and delivery timelines.

Read the document thoroughly. If need be, consult a lawyer.

4. Handover & Inspection:

- On making the payments, the developer will arrange a property inspection.

- You’ll hire an independent inspection team to inspect your apartment.

- If you think the result of the inspection meets your expectations, the developer will hand over the keys to the property.

- Upon handover, you can move in immediately.

5. Title Deed: Upon construction of the property, and on full payment of the amount, a certificate of ownership called “Title Deed” will be issued. This is your official proof of ownership..

Options for Financing

There are two ways to finance the property purchase in Dubai:

Cash: This allows you to negotiate better prices because you will have a better idea of your budget and bypass the banking delays

Mortgage: If you take this route, it’s generally a good idea to get pre-approval from the bank or financial institution before you start searching for the property you’d like to buy.

Conclusion

Dubai property investment has great promise in terms of financial rewards, and buying directly from the developer, if done right, greatly reduces the risks. Just remember to do your own research and due diligence, as well as seek advice from experienced professionals and be aware of the legal and financial requirements.