Buying an Apartment Directly from the Developer: Benefits You Should Know

The Dubai real estate market has been on the path of consistent growth for quite a while now and is globally one of the best in terms of investment. If you want to take advantage of this thriving market and buy an apartment in Dubai, buying it directly from the developer can be a more beneficial option. Here we will take a look at the benefits of buying directly from the developer.

Cost-Effective Pricing

Perhaps the single most enticing factor that makes people purchase a property in Dubai directly from the developer is the money-saving aspect – sometimes 100,000 AED per unit. A project in its early stages is frequently sold at low prices due to this reason. It gives buyers a great option of owning a property for a lower price than the finished, ready-to-move-in unit in the resale market. Furthermore, many developers offer flexible payment schedules wherein buyers can pay in installments instead of a considerable one-time payment.

Strong Investment Potential

When you get hold of a property at an early stage such as buying off-plan properties from a developer, it has the potential for substantial capital gain once the property is constructed, because Dubai is continuously increasing demand, and with each passing day, your investment is likely to gain a lot of value.

Flexible Payment Plans

Most developers provide different payment plans depending on the budget of the buyer. Such plans may incorporate small initial payments coupled with a schedule of small monthly payments during the construction period. The above flexibility gives buyers a chance to enter the buyer market without carrying much financial risk.

Lower Operational Costs

When you buy a new apartment from a reputable developer, and it is built according to the latest standards, there's no such thing as a fixer-up unit. Repairs, maintenance, and changes should be zero or very low in the first few years. You can enjoy low running costs.

However, newly built apartments use energy more efficiently, they are new so their systems haven’t been worn out by years of usage, they keep cold air in summer and hot air in winter from escaping. Think of energy efficiency that translates to cost efficiency.

Zero Transfer Duty

When you buy directly from a real estate developer, you don't have to pay a transfer fee. This tax is payable on sales between private owners. It is set a 4% of the selling price of the property. Buying from a developer means buying without this cost.

No Agent Fees

You can save money if buying directly from the owner as the agent will charge between 2-5% of the property value. Some agencies also add 5% VAT to their fees. That means 2% of the AED350,000 is 7,000.

Considerations:

If you want to buy an apartment directly from the developer, you should understand the potential risks that arise. Your lack of professional information, experience, and due diligence could cost you bucks. In light of these risks, the buyer should take some precautions.

• Do thorough research about the property you are about to buy and check its ownership

• Seek a lawyer's advice

• Clearly define and negotiate all terms and conditions

In addition to knowing the merits and demerits, the buyer should be well aware of the emerging trends and regulations in Dubai's property market. This will help the buyer reach a decision that is in line with its budget, priorities, and objectives.

FAQs

Q: What is the procedure to ensure that the property is free of liabilities?

A: Read the property documents thoroughly and do some research. To verify any outstanding loans or mortgages related to the property, take advice from the Dubai Land Department. Also, get an NOC from the concerned authorities. You can hire a lawyer or real estate expert for all these processes.

Q: What are the general payment terms offered by property owners in Dubai?

A: Payment terms may vary but the commonly used terms are cash payments, installment plan, or bank financing.