Selling Off-Plan Property in Dubai
One of the foremost reasons why investors choose to buy an off-plan property is due to the kind of profits it can bring even before the project is complete. Here’s a useful guide that can help you to sell an off-plan property.
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Resale Restrictions
Developers have certain resale restrictions in place for off-plan projects in Dubai, wherein you are only allowed to sell the property upon payment of a specific percentage of the purchase price.
The requirement is 30-40% of the property value, depending on your Sales and Purchase Agreement with the property developer. According to the terms of the contract, this percentage can run even higher.
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Registration and Transfer
- Once you find a buyer, then you need to secure a No Objection Certificate (NOC) from the developer
- This costs 5,000 AED and is paid by the buyer
- The agent and the buyer will proceed to the trustee office
- From there, you will be able to get the selling price of your shares in the property by way of a manager’s cheque from the buyer
- For the transfer fees, the cost will also be paid by the buyer
- Properties priced over AED 500,000 will incur a fee of AED 5,000
- For properties with a value of 500,000, the transfer fee is AED 3,500
- Registration fees will amount up to 4% of the total property value
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How to Find the Right Price?
The market leads transactional activity and a good real estate broker will accurately appraise your home based on transactional data related to your neighborhood and the type of property you have.
That being said, market data does not always recognize the capital value of the work that you have done to your home. Thus it is important to look into the recommendations of your real estate broker as you don't want to price yourself out of the market.
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Necessary Paperwork
- Always ensure that the paperwork is complete and accurate from the time of the listing.
- There needs to be a comprehensive file of transactional paperwork for the property so that when an offer is received, the sale can proceed quickly.
- Your broker should also have all the relevant documents in hand, and he or she should give you a clear indication of the fees involved in listing and selling your home.
Once your home is on the market, the realization marketing period (the marketing period before the home sells) in Dubai can differ from 2 weeks to 3 months plus.
