Month: June 2023

Investing in off-plan properties in Dubai offers an exciting opportunity for individuals seeking to secure their future in the thriving real estate market. However, it’s essential to understand the rights of cancellation that both investors and property developers have in this process. 

In this article, we will explore the existing off-plan laws in Dubai and shed light on the various scenarios based on the percentage of project completion.  

Understanding the Off-Plan Laws in Dubai

Dubai, being a progressive city, has implemented off-plan laws to protect the interests of both investors and property developers. In 2017, His Highness Sheikh Mohammed Bin Rashid Al Maktoum introduced law No:19 on the Interim Real Estate Register in Dubai. 

This law grants the Dubai Land Department (DLD) and property developers the right to terminate an off-plan sales contract without court interference. However, it’s important to note that this law may not apply if there are private contractual agreements with the property developer.

Cancellation Procedures Based on Project Completion

When investing in off-plan properties in Dubai, it’s essential to be familiar with the cancellation procedures that depend on the project’s completion stage. The rights of cancellation are determined by specific guidelines, ensuring fairness and protection for both investors and property developers. 

Let’s explore the different scenarios based on the percentage of project completion and the corresponding procedures that come into play.

Construction Not Started

In cases where construction has not commenced due to unknown reasons, the developer has the right to retain 30% of the amounts paid by the buyer. However, the remaining funds must be returned to the buyer within 60 days after the termination of the Sales and Purchase Agreement (SPA).

Completion Below 60%

If the project completion is below 60%, the developer can retain 25% of the amounts paid by the buyer and must return the excess amount. The buyer’s money should be refunded within one year of the SPA termination or within 60 days of the property’s resale.

Completion Between 60% to 80%

For projects with completion ranging between 60% and 80%, the developer has the right to keep 40% of the amount paid by the buyer and return the remaining sum. The same conditions apply as in the case of completion below 60%.

Completion Exceeding 80%

When the project nears completion, cancellation becomes a more complex process. At this stage, the developer may choose to declare the SPA and request the buyer’s execution. 

Alternatively, the DLD may sell the property through a public auction, with any gains offsetting an unpaid balance in favor of the developer. Furthermore, the developer can unilaterally terminate the SPA, retaining 40% of the purchase price.

Refunds and RERA Resolution

In the event of project cancellation by the Real Estate Regulation Agency (RERA), the developer is obliged to refund all amounts paid by the buyer in accordance with Law No:8 of 2007, regarding Escrow Accounts for Real Estate Development in Dubai. 

These regulations ensure that investors are protected and their investments are safeguarded.

Introducing Asette: Streamlining Off-Plan Property Investments in Dubai

Investing in off-plan properties in Dubai presents a promising opportunity for individuals looking to capitalize on the thriving real estate market. However, navigating the intricacies of this process requires a deep understanding of the rights of cancellation and the procedures involved, regulated by the Real Estate Regulatory Agency.

At Asette, we recognize the complexities associated with off-plan property investments and are dedicated to simplifying the entire investment journey. Our mission is to provide you with the necessary support and knowledge to make informed decisions and ensure a smooth and transparent purchasing process.

With Asette, you gain access to a cutting-edge platform that empowers you to create a personalized investment profile, explore a wide range of property investment options, and analyze crucial market metrics to evaluate potential performance and profitability. 

We believe in equipping you with the tools and insights needed to make confident investment decisions in the dynamic Dubai real estate market.

By leveraging Asette’s comprehensive resources and expertise, you can streamline your off-plan property investments, mitigate risks, and seize lucrative opportunities. Our commitment to transparency, customer satisfaction, and a hassle-free experience sets us apart as your trusted partner in the Dubai real estate landscape.

Embark on your journey towards successful off-plan property investments in Dubai with Asette. Experience the difference of a platform designed to simplify the investment process and provide you with the necessary support for transparent decision-making!

Imagine a world where investing in property is easy, transparent, and personalized to your needs. No more complicated legal requirements, hidden fees, or risky investment decisions. Welcome to Asette, the ultimate property investment solution for the UAE Off-Plan Market.

At Asette, we believe that property investment should be accessible to everyone, regardless of their status, nationality and finance. That’s why we offer a comprehensive range of services that are tailored to your specific needs and investment goals. From exclusive access to market data and investment tools, to personalized investment recommendations and flexible payment plans, we make it easy for you to invest like a local and achieve your property investment dreams.

The UAE Off-Plan Market: An Attractive Investment Opportunity

Dubai’s real estate market has long been known for its lucrative investment opportunities, with easy access to market by non-residents, and tax free income.

For those unfamiliar with the term, “off-plan” refers to properties that are still in the construction phase and not yet completed. 

While this may seem like a risky investment to some, it’s important to note that off-plan properties in Dubai are protected by legally certified escrow accounts and regulated by the Real Estate Regulatory Agency.

The off-plan market in Dubai has shown steady growth over the years. According to data from the Dubai Land Department, Off-plan sales have had exponential growth, accounting for nearly 55 per cent of overall sales volume in 2022 (up from 44 per cent the previous year). And off-plan sales accounted for 52.8% of all property transactions in the emirate in the month of March 2023. 

So why is the off-plan market such an attractive investment opportunity? 

For starters, off-plan properties are typically sold at a lower price than completed properties, making them a more affordable entry point for investors. Furthermore, investors in the off-plan market have the potential to benefit from capital appreciation as the value of the property increases during the construction phase. This is in addition to the rental income that can be generated once the property is completed and ready for tenants.

With such promising prospects, it’s no wonder that investors are turning to the off-plan market in Dubai. And with Asette, investing in off-plan properties has never been easier or more accessible. 

Let’s take a closer look at why Asette is the go-to choice for investors in the UAE.

Who is Asette for?

Investing in the UAE Off-Plan Market can be a lucrative opportunity for seasoned and first-time investors alike. At Asette, we understand that each investor has unique needs and goals, which is why we offer personalized investment solutions to cater to every individual.

No matter what type of investor you are, Asette has the tools, expertise, and knowledge to help you make informed decisions and grow your off-plan property portfolio in the UAE.

First Timers

For those new to the world of property investing, Asette makes it easy to navigate the market. Our online tools and experts offer personalized advice to guide you through your property investment journey. Our platform also provides easy-to-understand investment insights and analysis to help you make informed decisions.

International Investors

At Asette, we cater to international investors looking to tap into new locations with the support of our local market data. Additionally, we also offer access to the residence and investor visa options to help you make the most of your investment in the UAE Off-Plan Market.

Seasoned Investors

If you’re a seasoned investor, you already know the value of informed decision-making. Asette offers access to market data to help you make informed decisions and cut down on the time needed for investment analysis. Our platform facilitates access to flexible payment plans for better cash flow management.

What Does Asette Offer?

At Asette, we believe that every investor has unique goals and requirements. Therefore, we offer personalized investment solutions to cater to the specific needs of each of our clients. Here are some of the ways we can help you achieve your investment objectives:

Your Goals: Create Your Own Personalized Investment Strategy

At Asette, we understand that investing in real estate can be overwhelming, especially for first-time investors. That’s why Asette offers a personalized investment strategy that’s tailored to your unique goals and objectives. Our digital tools guide you in creating your profile and to identify your investment needs to provide you the best investment options that fits your affordability with best returns.

Informative Experience: Discover the Finer Details of Personalized Property Options

Asette allows you to explore and discover the finer details of your personalized property options. You have direct access to detailed analysis of the properties that fit your investment criteria. This includes market analysis, locations specifics and payment plans, and other crucial information that can help you make informed decisions.

Instant Analysis: Create Scenario That Suit Your Budget and Goals

Our investment platform allows you to create a scenario that suits your budget and goals. Our analytics tools help you to assess investment options and evaluate the potential return on investment. This feature helps you make an informed decision and ensures that you invest in a property that aligns with your investment goals.

Informative Investments: Access Instant Market Data and Investment Knowledge

At Asette, we believe that informed decisions are the key to successful investments. That’s why we provide our clients with instant access to market data and investment knowledge. Our platform offers market insights and knowledge on UAE Off-Plan Market, enabling you to stay ahead of the curve and make informed decisions.

By choosing Asette as your property investment partner, you can be sure that you’re investing in the right property at the right time.  

What Sets Asette Apart?

When it comes to investing in the UAE Off-Plan Market, it’s crucial to choose a platform that offers peace of mind and protection for your investments. At Asette, we take pride in offering our investors a range of benefits that set us apart from other investment platforms.

Transactions protected by legally certified escrow accounts:

All property investments facilitated by Asette are protected by legally certified developer escrow accounts. This means that your funds are held in trust until the property is completed, ensuring that your investment is protected throughout the entire investment process.

RERA’s Oversight of Real Estate and Construction Activities

Asette is fully compliant with the Real Estate Regulatory Agency (RERA), which ensures that all real estate and construction activities in the UAE are monitored and regulated. This means that you can invest with confidence, knowing that your investment is backed by a reputable regulatory agency.

Access to Freehold Properties for foreign nationals

With Asette, investors have access to Freehold Properties, which allows for full ownership of the property, including the land it is built on.

Flexible payment plans provided by vetted developers

Asette partners with vetted developers to offer our investors flexible payment plans best suited to their investment goals and budget. This ensures that investors can manage their cash flow effectively and invest in properties that align with their investment strategy.

 Favorable laws to protect Off-Plan investors

The UAE has implemented a range of laws and regulations that protect Off-Plan investors, including the requirement for developers to provide a guarantee for any funds paid towards the purchase of off-plan properties. Asette ensures that all investment metrics and analysis shown on our portal are derived from local Land Department Data, ensuring that our investors can make informed decisions based on accurate data.

At Asette, we believe that our investors deserve the best. We are committed to providing our clients with a comprehensive investment solution that is tailored to meet their unique needs and goals. With personalized investment options, access to exclusive property data and expertise, and commitment to safety and security, Asette is the right choice for your property investment needs.

Visit Asette‘s website to learn more and start your property investment journey today!

From high rental yields to affordable off-plan property payment plans in well-maintained neighbourhoods, Dubai is an attractive location for global investors. The consistent and increasingly stable real estate markets with fair prices, have made Dubai the sought-after destination for investors, entrepreneurs, and ex-pats.

Here are some of the benefits to consider when looking to invest in the Dubai Off-Plan Market:

Affordable property prices

The Dubai markets are gaining worldwide recognition from investors with the stabilising property markets that are more attractive compared to established investment hotspots such as London or New York.

Flexible payment plans

Property investing in Dubai has been perceived unaffordable, and inaccessible due to large capital requirements. However, extremely flexible payment options, deposits of as little as 5% with the flexibility to make monthly instalments, makes investing in off-plan property in Dubai suitable for a wide range of people across the globe.

New property advantages

Given the fact that off-plan properties once complete are brand new, you are likely to avoid costly maintenance fees for a while after the handover.

Qualify for UAE residency visa

The government launched the golden visa scheme wherein any buyers of off-plan property that amount to AED 2 million or more are eligible to apply for a golden visa. The golden visa grants ten-year resident status in Dubai. The developers or real estate agents coordinate with the immigration authorities to approve this golden visa for investors and buyers. 

Besides this, the country promotes foreign nationals interested to purchase properties in the UAE with other types of visas as well. Dubai Tourism alongside the General Directorate of Residency and Foreign Affairs has launched a retirement program in Dubai. This allows foreign nationals that are aged 55 and above to retire in Dubai with a five-year residency visa extension provided they have purchased a property worth AED 2 million or more.

Even if investing in an off-plan property does not qualify you for a residency visa, you may consider forming a business or becoming employed in the UAE.

As a tourist and non-resident, you can apply for a simple savings bank account in the UAE that allows you to do easy transactions or keep your savings in.

No taxes

Dubai is currently a ‘zero tax’ emirate, making it a sought-after destination for property investors.

Potential for higher rental yields

Compared to many other world cities, Dubai is offering one of the highest rental yields and returns for investors. Investors could enjoy gross rental yields up to 9% with great prospects for future growth and returns with a growing, developing city.

Eligibility for freehold property

Investing in Dubai off-plan projects provides foreign investors and ex-pats access to freehold properties with well-serviced options in prime locations.

Possibility to sell before handover

To reduce the risk of investing, you can re-sell your off-plan property before the handover date. As the property or development is closer to its completion date, its value grows to allow you to potentially make a decent profit in the sale.

High quality of life

The city’s vibrant lifestyle, vast culture, diversity, and high levels of safety make Dubai an attractive place to invest. Dubai has increasingly become an appealing destination for ex-pat workers, investors, and regular tourists. As such, there will always be demand for properties.

Innovation and creativity

Dubai is recognised across the world for its exquisite city infrastructure and innovative vision. Property Developers in Dubai embody this by elevating their projects to meet this modern look and latest trends.

Join Asette and access to more detailed market insights and guided investment support.

Investing in an off-plan property can be appealing with the attractive prices and flexible payment plans, but without sound knowledge of the market variables and the overall sales process could bring unnecessary stress and risk. This risk is usually heightened when people, especially inexperienced buyers make rather emotional decisions instead of financially savvy ones. 

While you may be well-versed in the sales process in your native country, it’s crucial to understand that every city or country may follow a different process. This is of course due to differing rules and regulations in each jurisdiction, making it in many cases more difficult to navigate the sales process without the support of a local or experienced investor.

With Asette your investment process is simplified with the support, and knowledge needed to ensure a transparent decision-making and purchase process. Below we have outlined the key steps in investing or purchasing an off-plan property in Dubai:

Decide On A Property To Invest In

Being clear about your investment goals and budget is the starting point for any investment. With Asette, you can create your investment profile, and access personalized property investment options. You have unbiased access to the property-related market metrics, to assess its potential performance and profitability. You can view different property options and simulate their performance, for easier, independent decision-making.  

Reserve The Property 

To secure the property for purchase, you will be required to pay a 5% to 20% holding deposit (also known as a booking fee) for the property. Some developers may accept a non-refundable deposit (fixed value) to hold the property for you until you proceed with other formalities such as contract signing or transfer of funds. 

Signing Sales and Purchase Agreement (SPA)

SPA is the most essential, legally binding document in the sales process stating the terms of your ownership. Make sure you have read through the entire document and understood all the conditions you are agreeing to. 

Another thing to look out for in this contract is the expected completion date, handover date, payment plan, and most importantly the conditions of re-selling the property. These tend to vary across all developers so even if you’re not looking to sell before completion, it’s best to keep your options open.

DLD/SLD Fees

A buyer is required to pay a government registration fee to the Dubai Land Department (DLD) of around 4% of the original property price. This fee is typically paid by the buyer to the developer who will make the payment to the DLD and generate a payment voucher on behalf of the buyer. Some developers may offer DLD waivers so this is something to look out for.

Property Registration 

Once you have finalized the purchase of your off-plan property in Dubai, the next step is to register the property with the land registry. This process involves paying a fixed registration fee, which is determined based on the value 

• Properties Valued below AED 500,000: If the value of your property falls below AED 500,000, the registration fee will be AED 2000, plus an additional 5% VAT.

• Properties Valued above AED 500,000: For properties valued above AED 500,000, the registration fee increases to AED 4000, with an additional 5% VAT

Oqood Registration

Oqood registration is another extremely crucial step in the ownership of your future property. The government grants this pre-registration certificate to owners of off-plan properties in Dubai. Once you have agreed upon the SPA, the developer is required to issue this certificate with Dubai Land Department and notify you once issued in your name.

Property Payments

Dubai off-plan payment plans are flexible and favorable for investors. Especially if the project is recently announced and the development timeframe is set for 2-3 years. Because off-plan properties do not qualify for local mortgages, property developers offer flexible payment plans, some of which offer a monthly payment schedule of up to 7 years. 

While you are not obligated to finish the entire payment of your property before receiving handover rights, you still need to complete the payments agreed upon in your payment plan. If there have been delays in your payment, there may be complications to settle later so make sure you make the transfers into the Escrow account set by your developer.

Project Completion

The developer is obligated to finish the project by the expected completion date agreed in the SPA. Once the project has been completed, you can schedule a pre-delivery inspection to make sure that the quality of your property is as per specifications and agreed terms. The final inspection should be booked for about 7 days before the handover. 

Handover

The developer will send you a handover agreement that you will need to sign to confirm that you have inspected and are under the ownership of your property in Dubai. 

Asette: Simplifying Off-Plan Property Investments in Dubai

Investing in off-plan properties in Dubai can offer attractive benefits, such as discounted prices and flexible payment plans. However, navigating the sales process and understanding the market variables can be challenging, especially for inexperienced buyers. Making financially savvy decisions and seeking the support of local or experienced investors is crucial to minimize stress and risks.

At Asette, we simplify the investment process by providing the necessary support and knowledge to ensure transparent decision-making and a smooth purchase process. Our platform allows you to create an investment profile, access personalized property investment options, and analyze market metrics to assess potential performance and profitability. 

With unbiased information and the ability to simulate property performance, you can make informed and independent investment decisions. Take advantage of our platform to simplify your investment journey and unlock the potential of the Dubai real estate market.

Dubai’s real estate market has always been an attractive destination for investors looking to benefit from the city’s economic growth and development. When it comes to property investment, two popular options in Dubai are off-plan and ready properties.  

For those who are new to property investment or are unfamiliar with the Dubai real estate market, Off-plan properties are those that are yet to be completed and are still under construction, while ready properties are ready for immediate occupancy.

As an investor, choosing between these two types of properties can be challenging. While both offer different advantages, it’s important to consider your investment goals and risk appetite before making a decision.

Let’s take a closer look at the advantages and disadvantages of investing in off-plan vs. ready. By considering these factors, investors can make an informed decision that aligns with their investment goals and risk appetite.

Off-Plan Properties: Weighing the Pros and Cons

Off-plan properties have become increasingly popular among investors due to their potential for high returns on investment. According to the Dubai Land Department (DLD), the off-plan property market in Dubai continues to show strong growth, with 35370 off-plan sales transactions worth $19 Billion, were recorded in 2022.

The figures clearly indicate that off-plan properties remain a popular choice for investors in Dubai due to affordable prices, growing economy and attractive lifestyle.

However, investing in off-plan properties also comes with its own set of advantages and disadvantages. In this section, we’ll take a closer look at the pros and cons of investing in off-plan properties in Dubai.

Advantages

Lower Purchase Price

One of the primary advantages of investing in off-plan properties is that they often come with a lower purchase price than completed properties. Developers offer attractive payment plans, such as paying only a percentage of the total price during the construction phase, with the balance paid on handover or post handover. This payment structure allows investors to secure a property at a potentially lower price and benefit from capital appreciation as the property value increases over time.

Potential for High Returns

Off-plan properties have the potential for higher returns on investment, especially if the project is located in a prime location and developed by a reputable developer. As the property value increases over time, investors can sell their property for a profit or earn a high rental income.

Customization Options

Investing in an off-plan property allows investors to customize the property to their liking. They can choose the layout, finishes, and fixtures, allowing them to create a unique and personalized space.

Disadvantages

Changes in Market Conditions

Any investment carries a certain level of risk. One of the risks associated with property investing is the potential changes in market conditions. If the market experiences a downturn or the demand for the property decreases, this may impact the investment prospects. However, changes in the market are expected especially when investing long term, as the asset will go through good and bad economic periods. 

Potential Delays in Completion

Although delays could occur for off-plan property developments, the investors can take comfort that the Real Estate Registration Agency (RERA) actively monitors the progress of construction works for each off-plan project in Dubai.

To minimize the risk of delays in property construction, the investors should be aware of the developer track record and reputation before making a purchase.

Navigating the Dubai property market and assessing the potential of off-plan properties can be tricky, especially for those without prior experience. In such situations, seeking the guidance of professional services like Asette can be the difference between a successful investment and a costly mistake.

Ready Properties: Discussing the Pros and Cons  

Ready properties are properties that have been built and are ready for occupancy or rental. In this section, we’ll discuss the advantages and disadvantages of investing in ready properties in Dubai.

Advantages

Guaranteed Rental Income

Investing in a ready property in Dubai can provide investors with immediate rental income. Ready properties can attract tenants and generate income from the day of purchase, providing a guaranteed income stream.

According to Dubai Land Department data analyzed by Asette team, average rental yields for residential ready properties in Dubai ranged between 6% and 9% in 2022, depending on the location.

Established Communities

Ready properties are often located in established communities, which can provide a sense of community and amenities such as schools, shopping centers, and recreational facilities. These factors can make a completed property more attractive to potential tenants, resulting in higher rental yields.

No Construction Risk

Investing in a completed property in Dubai eliminates the risk associated with construction delays. Investors can see the finished product before investing, providing a level of certainty and security.

Disadvantages 

Higher Purchase Price

One of the primary disadvantages of investing in completed properties is the potentially higher purchase price compared to off-plan properties. Completed properties are usually priced higher due to their immediate rental income potential and established location.

According to the DLD, ready property transactions in Dubai totaled AED 11.2 billion in Q1 2022, representing a 74% increase in sales value compared to the same period in 2021.

Limited Customization

Investors may have limited options for customization when investing in a completed property. The layout, fixtures, and fittings have already been selected by the developer, limiting the ability to personalize the property to attract potential tenants.

Maintenance and Repair Costs

Investing in a ready property in Dubai can occur maintenance expenses more frequently, which can eat into the rental income. Investors need to factor in these costs when evaluating the investment potential of a ready property.

No upfront payment plans

Investing in a ready property, will require full property price to be paid to the seller. Investors with available funds can settle the payment at once. However mortgage investors will be looking to pay higher upfront costs for mortgage than getting on an off-plan property ladder. 

Summing It Up

Both off-plan properties and completed properties have their own set of advantages and disadvantages. It’s essential to consider your investment goals, risk tolerance, and financial position before investing in either option. Conducting thorough research, evaluating the developer’s reputation and track record, and understanding the terms and conditions of the contract are crucial before investing in any property.

Thinking of investing in Dubai off-plan properties? Asette got you covered!

Asette offers a comprehensive property investment solution for the UAE Off-Plan Market. Our platform facilitates vetted and analyzed property options and connects you with legally certified escrow accounts, access to freehold properties for foreign nationals, flexible payment plans with vetted developers, and protection for off-plan investors through UAE laws and regulations. With personalized investment options, exclusive property data, and a commitment to safety and security, Asette is the right choice for your property investment needs.