Few valuable tips for buying off-plan property in Dubai

Inayat-ur-Rahman, Business Editor

The Dubai property sector is on a solid growth track and is marching ahead despite the global challenges. The local and global investors are keen to invest in the realty sector of the city of wonders due to huge demands and higher returns.

Walid Al Zarooni, Chairman of W Capital, the UAE-based real estate brokerage has identified several tips that help to securely purchase off-plan property in the Emirate of Dubai, amid strong market demand and great investors optimism about the sector’s future  performance.

Al Zarooni said that there are very appropriate chances to invest in Dubai real estate for those who bank on taking advantage of the rising trajectory of prices which lead to good returns. Any delay may mean a loss for hesitant investors.

He stated that for investors to grab a successful deal of buying an off-plan property and not be exposed to loss or fraud, they should abide to  some tips.

Deal with a certified real estate broker: He stressed the need to ensure that the real estate broker who manages the purchase transaction is certified and has a legal license. This can be known through the “Dubai REST” application or by requesting a copy of the broker’s card issued by the Dubai Land Department.

Check the real estate developer’ reputation:

Al Zarooni believes that the reputation of the real estate developer must be checked by looking at their portfolio, their commitment to the hand over dates in the project , and the quality of  finishes.

Ensure that the project is approved by the DLD: He indicated that the project must be verified, and this can be obtained through the Dubai Land Department website.

Pay all payments into the project’s escrow account:  He stressed that all payments should be made to the project’s escrow account, because the real estate escrow account is the bank account for the real estate project in which the sums collected from buyers of units sold off the map, or from project financiers, are deposited. The escrow account aims to regulate the progress of the establishment and construction of units sold off-plan, and thus to guarantee the rights of investors.

Review the purchase contract before paying: Al Zarooni pointed out that buyers need to verify the purchase contract and review all the terms contained therein so that there are no unfair conditions out of his favour, and in favor of the developer, and to ensure the dates of hand on and payment of installments.

Take a receipt for all payments made: He indicated that a buyer should ask for a receipt of every penny they paid in order to preserve their right. By doing so, they can prove that the installments  are paid on time without violating the terms of the contract. He can also recover his money if the developer violates the terms of the agreement.

Speed up the property registration: Al Zarooni noted that the Dubai Real Estate Registration Department provides many options to facilitate the real estate registration process. It allows the registration service with the DLD by applying for a registration. The services was created in order to register the whole or partial sale process between all parties to the contract, i.e. the seller and the buyer, or from any agent , provided that he is legally registered to purchase real estate, land, ready-made real estate unit, or real estate under construction units.

 Match your investment to your financial capabilities: He revealed that you must check your financial ability before making the purchase, because failure to make payments on time means applying fines.

Ensure that there is sufficient liquidity for all payments: He also stressed the need for having sufficient liquidity to help you pay the payments on time, so as not to be a plea for signing fines or a partial condition that is stipulated in the contract.

 Aware being fooled by tempting ads:

Al Zarooni stated that one should be careful not to be deceived by the tempting real estate offers that are being promoted, because they sometimes don’t tell the whole truth , and are merely to attract customers.

W Capital Real Estate Brokerage” was established in 2007 in the United Arab Emirates, specializing in real estate development, buying, selling, renting as well as consulting services for real estate companies.

Since its inception, the company has sold over Dhs 200 million of properties to major developers.

 Walid Al Zarooni is the founder and Chairman of W Capital Real Estate Brokerage.