What is the current market rate per sq ft for a apartment in CADI 1, JVS. I am interested in buying a unit off plan at Cadi 1. Please advise the rate since I have to sign the contract in a day or two.
The per sq ft rate for an apartment in Cadi 1 is from 1100AED to 1600AED. Remember the rate varies from location to location. To make a well informed decision, confirm the exact rate from any related real estate agent.
According to the current market condition, buying an off plan property is not advisable. However, if you are going with it then keep long term investment in mind.
This is near Al Khail road , touching the villas at Jumeriah Village South. Also, has anyone taken a bank loan/mortgage for purchase of apartment with this project. I am ready to put down 30% and they are offering at AED 750/-, with payment plan as per construction. But , I would prefer a bank loan & have lower EMI's.
First of all, I would advise you not to invest in off-plan property according to the current situation of Dubai real estate market. However, if they are giving you one good offer even then you would contact RERA to know the project status and the repute of the project developer, whether they delivered the previous property projects in time or not.
If you are willing to take property on bank loan then you must consult few banks to check out their mortgage offers and then make final decision.
I just double checked the per sq ft rate that I mentioned earlier and found it incorrect. I somehow confused it with some other project. Please pardon me.
First of all the rate they are asking for seems a little high unless its a high-end project with a marked difference in development standards as compared to most of the buildings in JVS. If you do a search in JVS, you will notice that completed buildings with numerous apartments at the rate of AED 400 to 500 / Sq.ft are available. Buying an off-plan property in the present climate is strictly not advisable or sensible in my opinion.
There can be uncalled for delays with your investment getting stuck. You will surly not have a great peace of mind when that happens and believe me it has happened to even the most renowned developers. You can check on the RERA website how the project is progressing.
Although it seems like the work is being carried out and the development is progressing, I am not sure if it will continue in the same manner till completion. Furthermore prices in JVS are not going to increase suddenly for some time so there is no quick money in buying this property off-plan. If you are thinking of taking out a mortgage or a loan, then why not buy a completed property at a cheaper rate and start earning on the rental income.
Any ways, the final decision is yours and it depends, what is your risk appetite. Regarding mortgage you can also consult the developer and they should be able to tell you if they have formed any partnership with a lending company.
Lastly an important question for the developer would be to ask why their project CADI2 is on hold?
Thanks for your valuable feedback, but require a little further help by giving you my back ground with this Investment.
I had invested in Orchid Residence for a 1BHK, 1088sqft at AED666. However on RERA it shows on hold (as per the 217 off plan blocked) & at shoring level of completion.
To keep my investment safe, I am working a swap with the builder to move to Cadi 1, which is not blocked by RERA & he has finally agreed to offer at AED 550/- after much negotaitions. I am swapping for a 1BHK of 1215 sq ft @ 550.
Do you recommed the deal, orelse his other projects seem to be on hold ....Do you think in the long run...after 3/5 years, the investment will be worth at 550. Sorry to bother you with this, but apprecaite your guidance.
Last question:
If they have offered me AED 550/- per sqaure feet. Should they be charging me on actual built up area (approx:947sq ft) or on super built up area (1215sq ft). They are saying 1215 will be mentioned on your contract & hence , it has to be paid on 1215sq ft.
However, I am told that sale rate is as per actual built up area( lower sq ft figure). Please clarify from legal view...
Sorry, but they are pressing me to close or forgo this offer & I am trying to make the best decission with your kind help...
First of all, if Orchid Residence is on Hold, then you have two options either file a law suit against the developer, which will cost you a little provided you win the case and get your money refunded. If you lose the case then you would have to bear the cost. However if the building has been constructed to 40% level then you will not have the option of filing a case as per the law.
As for the second option of swapping the property, I would definitely go for it. It will save time, hassle and as they say something is better than nothing. Believe me if you have this option available, simply jump for it. I know a few people personally who have lost their entire investment because the developer got busted as in bankrupt.
Now lets analyse their offer.
Firstly you need to understand that the actual built up area is called the net area whereas the gross area is the built up area plus area of other spaces such as lobby, floor space etc. Now this is what you need to do.
Check your previous contract for Orchid and see if you were paying for net or gross area. If it was gross then the deal sounds almost fair to me depending on how much payment you have already made. For e.g if you had made 100% payment then you will be losing roughly AED 50K, however If I was in your position, losing 50K is better than getting nothing in the end.l
However if the previous contract was based on net area and now they are charging you on the gross area, then your loss mounts up to 200,000 AED for 100% payment. In this case you need to re-negotiate the deal with them and work out a cheaper rate than 550 per Sq.ft.
Hope this helps and if you are uncertain about the calculation then do let me know.
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