How to Successfully Sell Off-Plan Property in Dubai: A Complete Guide

Why is everyone talking about selling off-plan property in Dubai?

If you’re an investor or buyer eyeing the Dubai real estate market, you’ve likely heard about off-plan properties.

Selling off-plan property isn’t as straightforward as selling a ready-to-move-in home. It comes with its own set of challenges and opportunities that you’ll need to know inside-out to get the best deal.

That’s exactly what this blog is going to help you with.

Whether you’re an investor looking to cash in on your smart early buy or you’re considering jumping into the game of buying off-plan only to sell later, you’re in the right place.

We’re going to delve into everything you need to know about how to sell off-plan property in Dubai, from the basics to the details.

By the time you’re done reading, you’ll be armed with actionable tips to make informed decisions and maximize your profits.

But first, what is an off-plan property and why are they popular in Dubai?

What is an Off-Plan Property?

In the simplest terms, an off-plan property is a property you buy before it’s constructed. You’re essentially buying the plan, hence the term “off-plan.” It’s a leap of faith, but one that can pay off in a big way if you play your cards right.

Now, why is selling off-plan property in Dubai catching so much attention?

• Dubai has always been a magnet for real estate investment. Its strategic location, world-class amenities, and strong economy make it a hotspot for both local and international investors.
• The great potential for high returns. Imagine buying a property at its lowest price point, watching its value skyrocket as it’s being built, and then selling it for a fat profit. This cycle is especially true in Dubai, where off-plan properties are often located in up-and-coming areas with great future potential.
• Buying and selling off-plan property in Dubai comes with financial incentives like lower initial costs and flexible payment plans. These advantages make off-plan properties an attractive option for those looking to invest without breaking the bank.

In a market where everyone’s on the hunt for the next big opportunity, off-plan properties in Dubai offer exactly that—a chance for significant profit and a foot in the door of one of the world’s most lucrative real estate markets.

Now let’s have a look at when you can actually sell your off-plan property in Dubai.

When Can You Sell Off-Plan Property in Dubai?

If you’re considering selling your off-plan property in Dubai, you need to be aware of the rules and restrictions. Let’s break it down:

Developer Restrictions on Selling Off-plan Properties in Dubai

For you to sell an off-plan property in Dubai before completion, you ought to have already paid a given percentage of payments. This percentage varies from developer to developer but the set range is around 30-40%.

This was put in place to prevent speculative buying and to maintain a stable real estate market.

The following steps are a must-do when selling your off-plan property in Dubai:

The 6 steps to Sell Your Off-Plan Properties in Dubai

1: Verify Eligibility for Sale

Before you go ahead with the sale, double-check with your developer if you can actually sell your off-plan property. You’ll usually need a No Objection Certificate (NOC) from the developer, which often requires paying off around 30-40% of the property value.

2: Get a No-Objection-Certificate (NOC)

Once you’ve found a buyer, the next step is to secure a NOC from the developer. This will cost 5,000 AED and is usually covered by the buyer.

3: Visit the Trustee Office

After obtaining the NOC, both the agent and the buyer will need to go to the trustee office for the next steps in the process.

4: Secure the Selling Price

At this point, you will receive the selling price of your shares in the property by way of a manager’s cheque from the buyer.

5: Cover Transfer Fees

The transfer fees are also typically paid by the buyer. For properties valued over 500,000 AED, the fee is 5,000 AED. For those priced at exactly 500,000 AED, the transfer fee is 3,500 AED.

6: Handle Registration Fees

Lastly, you’ll also need to sort out the registration fees, which amount to 4% of the total property value.

Apart from these steps, you also have to make sure that you are following the laws of the land.

Legal Aspects to Consider Before Selling Your Off-Plan Property in Dubai

Here’s what you’ve got to keep an eye on:

Ownership Laws

Make sure you’re legally allowed to own and, by extension, sell property in Dubai. Foreign ownership laws have become more lenient, but it’s always best to double-check.

Developer’s Approval

Before you can put your property up for sale, you’ll need a NOC (No Objection Certificate) from the developer. This means having paid off a certain percentage of the property’s value, usually around 30-40%.

Contractual Obligations

Dig out your initial contract and go through it with a fine-toothed comb. There could be clauses that affect your ability to sell. For instance, some contracts include penalties for selling before a certain time period has elapsed.

Taxes and Fees

Be aware of any taxes that may apply to your sale. Dubai doesn’t have capital gains tax, but there could be other fees, like the 4% registration fee, and possibly a 5,000 AED fee for the NOC, both generally paid by the buyer.

Legal Representation

It’s not mandatory, but it’s wise to have a legal advisor guide you through the sale process. They can help you understand the finer details and ensure you’re not missing any crucial steps.

The sixth step of selling your off-plan property in Dubai is paying the 4% registration fees. Do you know the purpose of paying such an amount?

Let’s find out…

Importance of DLD Registration Fees When Selling Off-Plan Property in Dubai

DLD (Dubai Land Department) registration fees are a crucial part of selling or buying property in Dubai, especially when it comes to off-plan properties. Here’s why these fees matter:

Legal Formality

First off, it’s a legal requirement. You can’t proceed with the sale or transfer of ownership without paying this fee. If you skip this step, you’re looking at legal troubles, and nobody wants that.

Property Validation

The DLD registration fee serves as a kind of official stamp that says your property is legit. It’s a way for the Dubai government to keep track of property sales and ownership, making sure everything is above board.

Market Stability

This fee also helps regulate the real estate market. By requiring a 4% registration fee, the government discourages frivolous buying and selling, which can lead to market instability. This is good for you as a seller because a stable market is easier to navigate.

Buyer’s Confidence

When buyers see that all DLD fees have been paid, it adds an extra layer of trust. For you, this can speed up the sale process.

That’s a wrap for selling your off-plan properties in Dubai.

Here are some tips to follow for both buyers and sellers to ensure a smooth buying/selling process.

Tips for a Smooth Buying/Selling Process for Off-Plan Properties in Dubai

The process of buying or selling off-plan properties in Dubai can be complicated, but with the right tips, it can go off without a hitch.

Let’s break it down for both sellers and buyers.

For Sellers:

1. Know Your Property: Understand every aspect of the property you’re selling, from its current construction status to the developer’s reputation. Get a hold of contracts, payment options, and any other relevant documents.
2. Compare with Local Market: Keep an eye on other off-plan projects in the area to know where your property stands. This will help you set a competitive selling price.
3. Legal Check: Contact the developer to know how much of the property must be paid off before you can sell. This is important to get your No Objection Certificate (NOC).
4. Agent Partnership: Choose a reputable real estate agent who specializes in off-plan properties. They can market your property to the right buyers faster.
5. Costs and Fees: Be clear on who pays for what. Typically, buyers handle the NOC cost and DLD registration fees, so factor these into your negotiations.

For Buyers:

1. Budget Wisely: Know how much you can afford and stick to your budget. Remember, there are additional costs like DLD registration fees.
2. Research the Developer: You’re buying a promise that the property will be completed as specified. Make sure the developer has a good track record.
3. Location, Location, Location: Location can make or break your investment. Consider the area’s future prospects, not just its current status.
4. Check Payment Plans: Some developers offer flexible payment plans. Make sure you’re comfortable with the terms before signing on the dotted line.
5. Legal Due Diligence: Check that the property is registered with the Dubai Land Department. This confirms its legitimacy and protects your rights as a buyer.
6. Secure the NOC: Once you’re ready to buy, you’ll need to secure a No Objection Certificate from the developer. This usually costs around 5,000 AED and confirms that the property can be sold to you.
7. Final Payments: Be prepared to pay registration fees that could go up to 4% of the total property value. Also, sort out the payment of any transfer fees and settle them accordingly.

By following these tips, sellers can get the best value for their off-plan property in Dubai, and buyers can make a secure, well-informed investment.

You Can Now Successfully Sell Off-plan Property in Dubai

As an investor or a buyer of off-plan property, this guide has provided you with all the essential information and strategies you will use to make the process as smooth as possible.Top of Form

Here are the important takeaways from the article:

Key Takeaways:

1. Understand the Property: Both sellers and buyers should understand every aspect of the off-plan property, from location to developer’s background.
2. Timing and Legalities: Selling at the right time matters. Be aware of developer’s restrictions and criteria for selling off-plan property in Dubai.
3. Extra Costs: Both parties need to account for additional costs like DLD registration fees, transfer fees, and the NOC.
4. Choose the Right Partners: Work with an experienced real estate agent who specializes in off-plan properties in Dubai.
5. Post-Sale Service: For sellers, don’t underestimate the power of post-sale service. It can turn a one-time buyer into a lifelong client.

By being well-informed and following these tips, you’re well on your way to successfully buy or sell off-plan property in Dubai.

Remember, knowledge is power, and in the competitive Dubai off-plan property market, it could mean the difference between a good deal and a great one.