The off-plan property markets are going exceptionally well in the real estate landscape of the UAE. They took fantastic speed in the last few years. Although there is a strict regulation by local authorities governing them, off-plan properties are highly alluring for international investors and local buyers as well. It’s very difficult to maneuver through so many terms and jargons surrounding off-plan properties for those who have recently entered this market. The basics explained glossary that can explain how to better position the buyer, property owner investor concerning any ambiguity within the complexity of an off-plan tapestry offered by the United Arab Emirates.

The Off plan Property entails units not as yet under construction. Such means providing the customer with blue print, floor plans, other details related to the infrastructure in the premises. Once again in most cases payment for an off-plan has to begin with a deposit. Installments are applied afterward to this deposit through until delivery.

Key Terminologies for Off-Plan Property

Off-Plan Property

Off-plan properties refer to property developments sold by developers on designs and architectural plans before the development has started.

Customers make an agreement with a developer that is accompanied by a down payment most of the times, then installment payments as the property nears completion.

Methods of Payment

It refers to an agreement made between the buyer and the developer about how the property should be paid for. Normally, in the UAE, payment plans are normally done in installments. Normally, a down payment is first made and subsequent payments based on the progress of the development. Post-handover payment plans is another where some developers have provided where the buyer will pay a fraction of the cost after taking the keys.

Launch Price

It is the first price that the developer would put on the property when it was first introduced into the market. The launching price would differ with the date of completion of the project. As a thumb rule, investors who get in at an earlier stage would enjoy better prices.

Completion Date

This is the approximate date at which the property is ready to be occupied. Developers hand over this date in a sales agreement, but this can be changed due to natural disasters or other legal issues.

Handover

Handover The date when the developer, through a proper deed transfer, transfers the property from the developer to the buyer. On this day, keys are handed over to the buyer and it can take possession or use the said property as it wishes.

Sale and Purchase Agreement (SPA)

The Sale and Purchase Agreement is the most crucial document involved in the purchase and sale of off-plan property. This is so because, within the Sale and Purchase Agreement, conditions and terms agreed upon by both the buyer and the developer are stipulated, which includes schedules of payments, handover dates, and penalties for delay.

Master Plan

Master plan This is an all-inclusive blueprint, which outlines how the project area will be developed. This involves residential, commercial, and recreational space layouts so that the buyer can envision what the overall development looks like.

Incentives

This promotional offer was started by the developers to attract as much customer base as possible into the project. Examples of incentives that are issued by the developers at the launch of a project, such as fee waivers and discounts, lenient payment plans, and many other things, to create interest in it.

RERA

Real Estate Regulatory Agency

RERA is the regulatory authority in Dubai, which makes sure that the developers do not contravene any law or rule concerning off-plan sales. It is to protect the buyer’s interest and to create transparency.

Regulatory authority differs from emirate to emirate.

Capital Appreciation

Capital appreciation may be termed as an increase in value over time with respect to properties. It is often triggered by market demand, improvements in infrastructure, and betterment in the surrounding area.

Escrow Account

It refers to that holding account where a purchaser’s money is put only until specific construction milestones for a project are obtained. This way, an investor’s protection is safeguarded to a buyer by taking care of financial assistance made to the developer along a project’s various phases in construction.

FAQs

What is the Off-Plan Property Counterpart?

The ready property of the off-plan is that the property is fully constructed and ready for occupation at a point in time.

Can Buyers Sue Developers Over Delayed Handover in Dubai?

Yes, they can, but only in case of force majeure or legally excused reasons, not having brought about the delay.

What is the difference between off-plan and secondary market properties?

Off-plan properties require that one waits for the project to be completed, though they come with attractive payment plans, and even greater returns. The secondary market property offers instant occupancy, and the likely lower appreciation.

Conclusion

Off-plan property is an active sector rapidly growing in the real estate market of the UAE. Therefore, it will be necessary for any prospect buyer or investor to recognize the terms associated with off-plan properties in order to easily penetrate this complex market.

There are good numbers of investment opportunities in the emirates, particularly with the developments seen in the emirates of Dubai and Abu Dhabi among others. If you are conversant with the most important terms and procedures, this will definitely be able to help guide you in taking decisions best for your investment.

Discover fantastic living and investment opportunities by finding new off-plan projects in the UAE. Keep abreast of dubizzle’s property blog for continuous insight into the off-plan real estate market and heighten your understanding of this industry’s changing landscape. Whether it is your first buy or you are an experienced investor, knowledge will be power to enable you to make the most of your investment potential in the thriving UAE real estate market.