Off-plan flipping is one of the strategies I follow most closely for my clients: you buy at launch, pay the first instalments and resell the contract before handover, when the project is well advanced and prices in the area have moved up. The buyer takes over your contract with the developer and keeps paying the remaining instalments.
When you can resell
Not always straight away. Many developers only allow resale once a certain percentage of the price has been paid, and the threshold varies by developer and sometimes by project. Once you pass it, the developer issues a no-objection certificate (NOC) and the transfer is registered with the Dubai Land Department. That is why the resale clause is one of the first things I read in the SPA.
How the profit is calculated
The buyer refunds what you have already paid and adds a premium: the difference between today’s market value and the original price. From that premium you deduct the costs of the resale: the developer’s transfer fee, any agency fee and registration costs. The 4% DLD fee is paid again on the new transfer, usually by the buyer.
Measure the return on the capital you actually committed, not on the full property price. This is where a good payment plan makes the difference: less capital tied up during construction means a higher percentage return.
Units that resell best
- Top-tier developers such as EMAAR, NAKHEEL and MERAAS, which the market recognises and pays for
- Layouts in rental demand: well-planned studios and one-bedrooms, villas and townhouses in family communities
- View, floor and orientation: the same unit type can be worth far more with the right view
- An entry price in line with the area, without paying today for tomorrow’s growth
Risks to keep in mind
The market moves in cycles: if demand slows, you may need to wait for handover and switch to renting. That is why I always set up a plan B, with realistic rental numbers, before we even talk about resale. There is no capital gains tax in the UAE, but if you are tax resident elsewhere the gain must be assessed with your own adviser.
Want to know whether a project has resale potential? Book a call or message me on WhatsApp.
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