The proliferation of off plan properties in Dubai, the growing economy, and the tax incentives for foreign investors have made Dubai a fertile ground for real estate investment. The real estate market crash in 2008 and the opening up of Dubai’s real estate market to foreigners a few years after have seen a massive increase in the number of properties being built and sold.
With these increases come the inevitable scar of fraudsters swindling investors—first-time and experienced investors alike—of their hard-earned money.
One of the ways they do this is through the sale of off plan properties in Dubai such as Arabian Ranches 3 Villas or Emaar beachfront apartments. Dubai real estate agencies recommend buying off-plan properties for investors interested in the long haul of real estate investment. Although there are risks involved—all investment vehicles are risky, some riskier than others—still off-plan properties is a great place to invest.
We would be telling you how to soot off-plan properties investments that are scams and how to avoid them.
The Dubai government came up with a brilliant idea to cross-check properties that are put up for sale. The government, since October 2016, brought regulations that required developers and brokers to get clearance from Dubai’s Real Estate Regulatory Authority (RERA) before they can advertise properties on the media.
This move has been able to reduce the number of scams that are perpetrated in Dubai. Before buying a house as an investor, check whether RERA has approved the advert. Only authorized RERA adverts should be taken seriously.
Furthermore, one of the tactics that scammers use to lure investors into their bogus schemes is to promise them huge profits within a short period. Most promise 30 to 60% profit in a short time. As an investor, if the developer promises you a 40% profit in one year, take to your heels.
The solution to avoiding these kinds of things is to use the services of a respected and experienced property agent. Agents would know which plan is a white elephant project and which is realistic.
Also, scammers will entice investors with a ‘no-financial risk’ clause to the contract. This method is a way to get investors to believe that their investments are safe. Don’t be fooled. Runaway if these clauses are attached to the contracts. There are no guarantees anywhere, so don’t be fooled into believing it; even if it’s one of the most unique new projects in Dubai, don’t be deceived.
Meanwhile, legal advice is compulsory to avoid falling into the pitfalls of scammers.
In conclusion, hiring the service of licensed and experienced professionals as well as due diligence to understand the market would save you from scammers. Off-plan properties are great investments if done right.