Buying off-plan properties in Ras Al Khaimah has garnered interest from investors and buyers due to lower property prices but higher ROI in the neighbourhoods. New developments to existing properties – all are becoming a golden opportunity for investors. Besides, the off-plan and ready properties show higher returns, thanks to the development of new resorts, hotels and other important amenities.
All these real estate investment opportunities are attractive. But how can one invest in the off-plan projects in RAK? Here’s a comprehensive guide to buying off-plan properties, which includes all the details – from benefits to legal procedures.
Things to Consider Before Investing in Off-Plan Projects
When you consider investing in the off-plan properties in RAK, you must weigh the advantages and risks associated with it. Similar to creating a checklist for buying an off-plan property in Dubai, you must consider the payment plans, handover time, location and developer.
Let’s go through the benefits and risks associated with buying off-plan properties in RAK.
Advantages
Off-plan properties in RAK can offer many benefits. These include:
- The value of the off-plan properties often increases before completion, offering potential financial gains.
- Buying off-plan can require a smaller upfront payment, making it more financially manageable for buyers.
- Some developers offer attractive incentives, discounts and flexible payment plans to early buyers.
- RAK’s real estate market is growing, providing excellent prospects for future property value appreciation.
Risks
Alongside its several advantages, one can’t ignore the risks associated with buying off-plan properties in RAK or any another place for that matter. The risks include:
- Dealing with delayed off-plan projects can affect your planned move-in or rental income.
- Economic fluctuations can impact property values, potentially affecting the estimated ROI.
- The final property can differ from the initial expectations, leading to dissatisfaction with the quality of construction or finishes. That’s why choose a trusted real estate developer.
- Legal disputes or changes in regulations can pose challenges, especially if the developer faces financial or legal issues.
- Additional fees or unexpected expenses can arise during the construction phase, impacting your budget.
How to Buy an Off-Plan Property in RAK
Before investing, you must learn about off-plan vs ready properties. From familiarising yourself with the market trends and conditions to choosing a payment plan, here are the tips and steps to buy off-plan property in RAK.
Familiarise With the Property Market Trends
It is essential to learn about the market before getting into it. For instance, you must know about the popular areas, property types and developers. You can go through the comprehensive 2023 H1 RAK real estate market report by dubizzle to learn about the neighbourhoods that have garnered the most interest.
Furthermore, all projects may differ. Therefore, choosing a trusted and popular real estate developer is essential. Decide about the communities by looking into the amenities and facilities on offer.
Set Your Budget
After getting detailed market insights, ensure setting up your budget before buying off-plan properties in RAK. It is important to learn about cash vs mortgage when buying a property. Additionally, you will have to save money to make a down payment and choose a payment plan.
After that, calculate the hidden costs, such as fees, taxes and other charges you will incur. Besides, it is one of the off-plan buying tips in RAK to calculate the instalments before deciding to buy the property.
Consult Professional
The benefits of hiring a real estate agent are well-known. They know the property market trends better than anyone. Their expertise can come in handy when buying an off-plan property in RAK.
Some developers even market their projects through real estate agents. For that reason, you must choose a credible agent before buying a property.
Search Developers
Currently, many real estate developers have announced upcoming projects in Ras Al Khaimah. You must learn about the most experienced developers and buy a property in their projects. They are most likely to offer excellent payment plans and good-quality house designs and hand over the project on time.
Some popular real estate developers from where you can consider buying off-plan properties in RAK are:
- RAK Properties
- Al Hamra Real Estate Development
- Uniestate Properties
- Kay Invest
- Emirates National Investment
- Fam Holding
- The First Group
- Select Group
Explore the Popular Areas
One of the most essential things to consider is the popular communities. For instance, if you are looking to invest in off-plan villas, you must learn about the popular areas to buy villas in RAK.
Here are the areas and prices of villas for sale in RAK.
Area | ROI | Average Price | 3-Bed | 4-Bed | 5-Bed |
|---|---|---|---|---|---|
Area Al Hamra Village | ROI 4.87% | Average Price 3,468,000 | 3-Bed 1,700,000 | 4-Bed 2,900,000 | 5-Bed 9,178,000 |
Area Al Marjan Island | ROI 4.43% | Average Price 4,884,000 | 3-Bed 2,684,000 | 4-Bed 4,957,000 | 5-Bed 6,391,000 |
Area Mina Al Arab | ROI NA | Average Price 7,790,000 | 3-Bed 5,720,000 | 4-Bed 7,800,000 | 5-Bed 13,680.00 |
Besides, among the popular areas for buying apartments in RAK, Al Hamra and Al Marjan Island are at the top.
Area | ROI | Average Price | Studio | 1-Bed | 2-Bed |
|---|---|---|---|---|---|
Area Al Hamra Village | ROI 7.60% | Average Price 566,000 | Studio 298,000 | 1-Bed 497,000 | 2-Bed NA |
Area Al Marjan Island | ROI 6.73% | Average Price 807,000 | Studio 355,000 | 1-Bed 663,000 | 2-Bed 1,100,000 |
Area Mina Al Arab | ROI 4.74% | Average Price 1,100,000 | Studio 451,000 | 1-Bed 831,000 | 2-Bed NA |
Area Yasmin Village | ROI 11.70% | Average Price 308,000 | Studio NA | 1-Bed 246,000 | 2-Bed 301,000 |
Area Al Seer | ROI 8.89% | Average Price 234,000 | Studio 189,000 | 1-Bed 300,000 | 2-Bed 362,000 |
Finalise Your Choice
After going through all the details, you must choose a project for buying off-plan properties in RAK. Among the new off-plan developments, you can explore these upcoming projects:
- RAK Bay Residences
- Al Hamra Falcon Island
- RAK Gateway Residences II
- Uniestate Rose Building
- Union Tower Al Seer
- The Queens Residential Villas
- Kay Holiday Homes
- Al Mahra Resort
Choose a Payment Plan
Choosing a payment plan is another essential step when buying off-plan properties in RAK. Similar to off-plan property payment plans in Dubai, RAK also has several options. It can be in instalments, making the last payment after the handover. That said, you must learn about the pros and cons of off-plan payment plans to avoid any issues later.
Proceed to Legal Requirements
After buying off-plan properties in RAK, you must register the sales. Here are different processes that a buyer or investor can follow via e-service by the RAK Government.
Off-Plan Sales Registration
When you are buying off-plan properties in RAK before its construction, the developer can open a request and submit the document to register the sales. Here are the steps for off-plan sales registration:
- Sign up or log in using the portal.
- Submit the following documents:
- Undertaking form (for new developments)
- Copy of passport
- Emirates ID
- Sales and Purchase Agreement (SPA), only three pages are needed:
- Details of the property buyers and sellers
- The escrow account page.
- Payment plan page
- Buyers’ and sellers’ signature
- The official will review the request and approve it
- After approval, submit the fees of AED 3,000
- The buyer will receive the off-plan sales registration certificate after paying the fees
Off-Plan Sales Transfer
If you decide to sell the off-plan property, you can transfer the sales using the same method. The fees will be the same, but you will need a no-objection certificate (NOC) from the property developer and the initial sales registration document.
Off-Plan Sales Modification
This service allows investors and buyers to make modifications, such as property numbers, payment plans or other details to the initial sales registration certificate. Moreover, the steps, documents and fees are the same as registration for off-plan sales modification.
FAQs
WHERE IS THE BEST PLACE TO INVEST IN RAS AL KHAIMAH?
Ras Al Khaimah has witnessed many new projects this year. For instance, resorts and hotels in Marjan Island have attracted investors. Moreover, Al Hamra Village saw some old constructions turned into new developments. All-in-all, all the freehold areas are the best places for buying off-plan properties in RAK alongside ready-to-move ones.
CAN EXPATS BUY PROPERTY IN RAK?
Yes, expats can buy property in Ras Al Khaimah under specific conditions and regulations set by the government. Expats can only invest in the following freehold areas in Ras Al Khaimah:
- Al Hamra Village
- Marjan Island
- Mina Al Arab
- Dafan Al Nakheel
This concludes the detailed guide to buying off-plan properties in RAK. You can explore the ready and off-plan villas and apartments for sale in RAK, and make sure you follow this guide. Also, you can follow the guide to buying properties in Ras Al Khaimah to avoid any mistakes as a beginner or professional investor.
Stay tuned to the dubizzle real estate blog to get more insights and tips for buying properties in the UAE.
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