Choosing the Right Real Estate Developer When Buying a Property

A real estate investment in Dubai is both an alluring and a daunting prospect; because you need to play your cards right, and take into account a multitude of factors before pulling the trigger on your dream property.

This is especially true if you’re someone who is not living in Dubai, and unfamiliar with how the property market works. Having said that, in this article, we will shed light on the factors that you need to take into consideration before making an investment in arguably the world’s most loveable and livable city.

Select the Right Real Estate Developer

There are a plethora of property developers as well as agencies in Dubai. So, firstly, you need to understand your needs. Are you looking to purchase a home for yourself and your family? Do you seek a property that gives you sizable returns in the future? Will you invest in a project that’s under development or buy an already existing residence? Once you’ve identified your needs, only then will you have a clearer picture of how to go about your property search in Dubai.

Buy Off Plan - Things to Consider

An appropriate way to describe an off-plan property purchase is this: You want a brand-new home for your family or an investment in a community-focused residence, and are willing to wait for a few years. Here are the benefits of purchasing an off-plan property:

• You buy directly from the developer after a certain time period

• You get a flexible payment plan

• You can maximize your rental yields, given that the property is new, and in a developed area

• You can be eligible for certain incentives from the developer, such as no service fee for the first few years, free concierge, etc.

On the contrary, here are some risks associated with buying an off-plan unit from a real estate property developer in Dubai:

• Usually when a project is even announced, most if not all units are booked on the first day itself. So, supply could be an issue

• Expect some differences in the final product from what’s advertised in the renders

• Economic climate could have an effect on the project timelines

• Off-plan properties inherently carry more risks than existing projects

Things to Consider in a Secondary Market Property

A secondary market purchase refers to any property that you buy from an existing owner. Let’s discuss some key benefits of getting your hands on a secondary market residence:

• They’re more affordable than off-plan properties, since the cost of land, construction materials and other surcharges have already been paid off by the owner

• There’s little to no waiting period

• You can immediately put the property on rent through an agency or yourself, and start generating income

On the flip side, here are some drawbacks:

• Used properties might require you to make certain refinements to the aesthetics or the layout

• Payment plans are usually not flexible

• May or may not have ideal amenities, views, parking, accessibility and surroundings compared to an off-plan development

Now that we have an understanding of off-plan and secondary market properties, let’s dig into the factors that you need to account for before buying property in Dubai from a developer.

Check their Portfolio

There is a myriad of developers in Dubai, all vying to attract property buyers from across the globe. Having said that, the best way to gauge a developer’s credentials is by looking them up on reputable portals such as Property Finder, Bayut, and Dubizzle. There, you will find extensive property listings as well as thorough information on the developer, including their history, current projects, future ambitions as well as their contact information.

Pay a Visit to Completed Projects

It’s always a good idea to go in person, and view the property and its community firsthand. Look for factors such as nearby amenities, quality of materials, accessibility to major road networks, etc. You may also speak with current residents to receive feedback on their experiences with the developer.

Check their Professional Accreditation

Checking a property developer's professional accreditation is one method to assure authenticity and trustworthiness. The Dubai Land Department (DLD) approves property developers throughout the emirate. The DLD's certification scheme requires developers to meet high financial, legal, and project management criteria.

Review Payment Plans

Because of competition, most developers will offer you a competitive payment plan that’s flexible and spread over many years. Examine the payment plan conditions carefully, which should provide detailed information on all financial aspects. Ensure the installments and down payments are within your budget. Once the negotiation is complete, carefully read the terms and conditions.