During Q4 2023, the real estate sector of Dubai generated a total sales value of 122.3 billion AED. In comparison to Q4 2022, it is an almost 50% rise.
It shows that investors’ interest in Dubai’s real estate market is growing consistently. Foreign and local investors see Dubai as a safe investment destination with excellent returns.
One key mode of this investment is “off-plan” properties. These properties are available for sale before their construction is completed. Investors consider off-plan projects profitable because they cost less than finished properties. Moreover, once completed, they offer high ROI.
To regulate the off-plan property sector for both the developer and the investor, the government of Dubai has introduced Oqood. If you wish to invest in an off-plan property in Dubai, you cannot do so without understanding and using Oqood.
In this article, we will define “What is Oqood in Dubai?” its benefits, and everything else you need to know.
To help buyers and investors and to regulate the off-plan sector, the Dubai Land Department (DLD) and the Real Estate Regulatory Department (RERA) have introduced an online portal called Oqood.
The Arabic word Oqood means “contract.” It is an online platform that aims to streamline the sales, purchase, management, and legal protection of an off-plan portfolio for investors and developers.
Emirates Real Estate Solution (ERES) offers the Oqood service, and anyone interested in dealing in off-plan properties in Dubai must first register on Oqood.
In essence, Oqood provides the following services to off-plan developers and investors:
Simply put, Oqood Dubai is a one-stop solution where developers and investors can ensure a safe transaction, management, and record-keeping of their off-plan portfolio. In case of any legal setbacks, both parties can use Oqood to address and resolve various issues.
Sometimes, “Oqood” and “Oqood certificate” are used interchangeably. In simple terms, the proof of Oqood registration of an off-plan property is called an Oqood certificate.
Oqood is the standalone platform that ensures best practices regarding off-plan property management in Dubai and the UAE.
It has some key benefits to offer to both investors and developers. They are as follows:
The most significant advantage Oqood offers is helping buyers and developers achieve a high level of transparency in their dealings.
Whether it is fee transactions, project progress, documentation, or business history, everything is visible to each party.
Moreover, the online portal streamlines the process and eliminates the red tape usually present in the real estate sector in Dubai.
Oqood is quite beneficial for developers as it helps them keep a complete record of their projects and customers. Not only does it record transactions, but it also generates legally valid payment vouchers and receipts.
Oqood protects investors from becoming victims of developers’ fraudulent intentions. When a developer registers an off-plan property with the Dubai Land Department, they cannot resell the same property to multiple clients.
Investors are also protected because they can view their complete payment history on Oqood. For example, if a developer tries to charge you an Oqood fee by asserting that the previous owner didn’t pay any, you can check the property records on the online Oqood portal.
Simply entering the owner’s/project’s details in the search bar will give you all the details and payment records.
The Oqood app consistently updates investors about the progress throughout the project. It helps buyers take measures if the developer is delaying progress.
For example, you can use the “properties” section in the Oqood portal to terminate the contract with a developer who is delaying the off-plan project.
However, before doing so, you must seek approval from the Dubai Land Department.
Since many foreign investors invest in off-plan properties, the portal features bilingual support in Arabic and English.
If you’re a real estate investor or buyer in Dubai, you may know the term “title deed.” It is a crucial document confirming your ownership of a purchased property. In the absence of a title deed, your claims of property ownership can be legally rejected.
An investor gets a title deed when they have completed the property purchase. However, in the case of off-plan properties in Dubai, things can get confusing.
Since you’re legally bound to deal in off-plan properties through the Oqood Dubai portal, you are issued an Oqood certificate while the property is still under construction. The RERA issues this document to the buyer, and it is the guarantee that you are the investor in the said property.
As a new off-plan investor, you might wonder about the legal standing of an Oqood certificate compared to a title deed, but there’s no need to worry.
Once the project is complete, the Oqood certificate is transformed into a title deed. You don’t need to acquire a title deed separately once the development ends.
The Oqood online portal is divided into multiple sections, each with different functionalities. They are easy to use, and we have summarized their essential functions below.
Let’s take a look at them and learn how to use them:
The Oqood portal simplifies the management of multiple properties through the “properties” section. You can easily add new properties, edit their details, raise termination requests, or add payment plans.
Here are some of the key features of the properties section:
The “participants” section lists all the companies, developers, and individuals developing off-plan projects in Dubai. You can search for the particular participant you’re investing with. You can also manage them by adding them to the “Person Management” section. Here’s how to do that:
“Procedures” is an important section of the Oqood portal that lets you initiate, record, and maintain different procedures regarding your off-plan investments.
It also lets you know about complete, incomplete, or ongoing procedures. It includes all the procedures that require DLD approval.
They are as follows:
When reselling properties, the developers need a no-objection certificate (NOC) from the DLD. The NOC section of the Oqood portal allows for easy application and acquisition of these certificates for property reselling.
Depending on different procedures, the Oqood portal creates different contracts. The concerned parties must sign these contracts. The users can easily download, sign, and upload the contracts on the portal with the help of the “contracts” section.
Here are some examples of the contracts the Oqood portal generates for you:
Different procedures incur different types of fees, and the “vouchers” section records the details of these fees. The portal generates a voucher in the payee’s name, and the investor pays it off.
Sometimes, the developer might generate a payment voucher and pay on the payee’s behalf. You must pay all these fees through the DLD.
You can also add other users, called sub-users, to the Oqood portal. The function of the “administration” section is to let you add, delete, edit, and manage these sub-users.
Certain statements contained in this document constitute forward-looking statements. Such forward-looking statements, including our intended actions and performance objectives, projections, targets, estimates, or forecasts involve known and unknown risks, uncertainties and other important factors, including our ability to successfully develop and operate the Vairt Marketplace, our business model and the services we intend to offer. These factors are based on expectations and assumptions that may change and are subject to regulatory uncertainty, changes in our legal environment and the blockchain and real estate industries generally, which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. All amounts, numbers, ranges, and values presented in this document are subject to material change and should be taken as preliminary and indicative only. Any such amounts, numbers, ranges, and values are based upon preliminary estimates, remain subject to ongoing analysis and may change materially. All forward-looking statements in this document speak only as of the date hereof. We expressly disclaim any obligation to update any forward-looking statement to reflect any change in our expectation or any change in events, conditions, assumptions or circumstances.
