Frequently Asked Questions(FAQ) – Your Real Estate Questions Answered
Frequently Asked Questions
Off-plan refers to the purchase of real estate properties that are still under construction or development, allowing buyers to invest in a property before it is completed and ready for occupancy.
Investing in off-plan real estate in the United Arab Emirates offers the potential for attractive returns and early access to emerging property markets.
Investing in off-plan real estate carries the risks of construction delays, changes in market conditions, and potential uncertainties in the final property outcome.
When investing in off-plan real estate, you may encounter additional expenses such as administrative fees and property registration costs (4% Dubai Land Department registration fee).
Brostrom Properties can assist you in identifying the ideal off-plan investment property by leveraging our expertise and tailored market insights to match your specific investment goals and preferences.
To begin your off-plan real estate investment journey in the United Arab Emirates, simply reach out to Brostrom Properties, and we’ll guide you through the process step by step, making it easy and accessible for you.
Yes and no. Some developers offers a discount if you pay more on the initial so-called down payment. Some developers also offers a yearly interest rate that they pay you, during the construction, if you pay the full amount of the property.
No, you do not need a local bank account to purchase a property in Dubai or in the UAE.
Brostrom Properties has partners for international payments. With our exclusive partners, we offer a wide arrange of payment methods, suitable for every client special needs. This, to make it a smooth process for all our clients.
There’s no simple answer to this question. Obviously, building a 54 storey skyscraper is going to require more time to finish than building a townhouse. It all depends on the project. Some developers might get cancellation on units close to handover that you might be able to buy. Those are of course closer to hand over. Average project time frame is somewhere between 1.5 years to 3 years. Some projects take longer to finish.
There’s no answer to this question. We can only look at the historical data available, and analyze from the data. For the last 15 years, the real estate market in United Arab Emirates as increased by approx. 9.3% per year, for the last 15 years. United Arab Emirates has also been a huge tourist destination, which has resulted in high rental yields. 9% of the total GDP in Dubai 2022 was generated by tourism, while oil only stood for 2%.
If a developer goes bankrupt, it can certainly cause concern for investors. In Dubai, though, there are measures in place to mitigate these worries. If a project gets canceled due to developer bankruptcy, RERA steps in—the Real Estate Regulatory Agency. They ensure a refund to investors. The funds are typically held in escrow accounts, separate from the developer’s personal accounts. RERA’s involvement is key; they oversee the refund process, aiming to secure investors’ rights promptly. This setup reduces the risk of a developer absconding with investors’ funds.
Some developers offers a return-period. This period is often within the first 30 days from signing the SPA (Sales and Purchase Agreement). However, in the UAE, you’re allowed to re-sell your unfinished property on the secondary market. Many buyers sells their units after a period of time because of the profit, already made before the project is 100% completed.
You’re allowed to rent out your property on long term without any permission needed. Your real estate broker needs to make sure that the tenancy contract (also called Ejari, mean my rent in Arabic) is properly registered. For renting out a property on short-term (Airbnb, booking.com etc) you need a DTCM license in Dubai. Dubai has some requirements on the property in order to be able to market the property on portals like Airbnb and Booking.com.