Thinking About Buying Off-Plan Property in Dubai? Here’s What You Should Know
Assalamu Alaikum, brothers and sisters. With so many new property projects launching in Dubai, I’m thinking of buying an off-plan home for the first time. What are the benefits and risks compared to buying a ready-to-move-in property? - CM from Sharjah
Buying off-plan property can be a great opportunity, not just in Dubai but in other Emirates too. Many investors have seen good profits by getting in early. But like any investment, there are upsides and downsides to consider.
Advantages:
- Often lower prices than finished properties
- Potential for good returns as the project develops
- Ability to choose your preferred unit and customize it
Risks:
- Construction delays or changes to the project
- Market fluctuations that might affect property value
- The property not being ready when you expected
To keep yourself safe, always check that the project is registered with the Dubai Land Department and make sure your payments go through the escrow account. This protects your money and links it to the building’s progress.
Off-plan buying is usually best for those looking for long-term investment and who have patience. If you need a house to move into right away or want guaranteed immediate returns, a ready property might be a better option.
Another question I’ve heard from a brother in Dubai: He owns a two-bedroom apartment in Dubai Marina rented out on a long-term lease. He wants to sell, but buyers ask for the unit to be empty. Can he sell with the tenant still living there, or must he evict first? - NB, Dubai
It’s common for sellers to face this. You can sell the property with the tenant still living there, and many investors like this because they get rental income from day one. But if the buyer wants to live there, it gets tricky.
By law, the tenant’s rights stay valid even if the property ownership changes. So the new owner becomes the landlord and must respect the existing lease until it ends. If the buyer wants to move in, they need to give the tenant a 12-month notice to leave.
This often makes people who want to live in the property hesitate to buy it if it’s rented out, since they might have to wait a year or more to move in. This could be why you’re finding it hard to sell.
If you want to sell quickly, you could talk to your tenant about moving out early in return for some financial help - like offering a couple months’ rent to make it easier.
The key is to be honest with buyers. If you tell them the property is rented and earning income, you’ll attract investor buyers, which can save you time and avoid problems in negotiations.
May Allah make it easy for all who are investing or looking for a home. If you have more questions, feel free to ask knowledgeable people or trusted real estate advisors.
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