Buying off-plan property in Dubai?

Though a number of investors are buying off-plan properties in Dubai today, it is not like before.

A slew of measures have been introduced by Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department (DLD), to ensure that developers complete their projects, while investors, on their part, are leaving no stone unturned. They are asking for official documents before putting that 10 to 20 per cent booking payment.

So what documents are investors asking for?

Developers say investors are these days asking for the following documents:

* Land title deed

* Escrow account number

* DLD approvals

* Agreement with the contractor

In order to ensure that the off-plan project is completed, Rera has introduced measures such as the developer having to pay 100 per cent for the land and make a down payment of 20 per cent as bank guarantee, or deposit 20 per cent in escrow account, or complete 20 per cent construction before selling off plan.

Apart from the above measures, Rera even asks contractors to submit a 10 per cent performance guarantee.

?In fact, there are rules in place now to have enough money to complete a project,?.

In June 2013, Marwan bin Ghalita, CEO, Rera, had said, ?No project in Dubai was launched without a construction guarantee and developers have to guarantee that their project will be completed on time.?

 

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