During the last years, the Kingdom’s capital witnessed an exceptional revolution in real estate development. The off plan sales projects in Riyadh spread to gain a wide reputation and be an effective element in this process.
So, let’s discover what this system means?, and the prominent features and advantages of it, continue reading in our article.
What is the Off plan sales system ?
If you are asking yourself, what does the off plan sales project mean?. Basically, it’s a real estate system that allows developers to sell residential properties like apartments, villas and offices, before starting the construction process.
In other words, it’s buying a property “on paper” or “off the plan”, where buyers are shown the project’s future designs and layouts. Then, pay for the unit in installments throughout the construction period.
Off Plan Sales Projects in Riyadh Features
This system is considered one of the easiest ways to invest in real estate, especially for beginners. Developers often offer incentives, such as discounts and special deals for early buyers, which can lead to higher potential returns.
In addition, off-plan sales are regulated and monitored by government authorities, with insurance requirements in place to protect buyer’s rights. This makes the process a safe option for long term investment.
Also, it comprises a bunch of other advantages and features, for example:
- Off-plan property value increases over time, securing strong financial returns.
- Encouraging the attraction of local and international investors to real estate.
- Reducing the needs of maintenance, while the project is in construction period.
The Challenges of this System
Despite all the features that we mentioned above, this system still faces some challenges. This includes the violators who do not adhere to off-plan sales regulations, often due to exaggerated or misleading marketing. Other challenges include:
- Lack of necessary permit documents exposes projects to legal risks.
- Limited investors’ awareness allows legal loopholes to be exploited.
- Developer non-compliance can cause legal issues.
Also read about: The Major Entertainment Projects in Saudi Arabia.
Off Plan Sales Projects in Riyadh conditions
To solve all the challenges and problems that we mentioned before, the authority has set a group of conditions. These conditions can be summarized as the following:
Advance Payments
Advance payments must not exceed the agreed amount and should be made through monitored bank channels to ensure legal compliance. Property taxes must be paid as specified.
Commitment to the Set Timelines
In other words, adherence to the set timeline is required. If the developer delays the handover of the property, they must pay a penalty of 5% of the unit’s value.
Warranty Period
Ensuring that the buyer receives essential guarantees that cover the structural integrity of the building. As well as the provision of basic services, such as electricity, water and other necessary utilities, for a minimum period of 12 months after handover.
Prominent Off Plan Sales Projects in Riyadh
As the capital of Saudi Arabia, Riyadh contains numerous off plan projects that are considered as prominent options for real estate investment, such as:
Ministry of Housing project
This project embodies the Ministry of Housing’s ambitions of developing the real estate sector and offering more residential and commercial options. The project was built on 778,604 m of total land area, divided into 761 residential and commercial plots available for off-plan sales.
Also, the development boasts a prime location, surrounded by other projects and service institutions, enhancing its appeal. To streamline buying and selling processes, the “Wafi Platform” acts as an intermediary between the developer and buyers, marketing and collecting purchase requests.
How to Buy Off Plan Sales Properties in Riyadh?
To start your journey with the off plans sales projects in Riyadh , you have to follow certain steps and procedures, like the following:
- Information is provided by the seller and buyers, they can consult “Wafi Platform” for more details.
- After reviewing the designs, visiting the actual project site is recommended to verify progress and ensure it matches the plan.
- Once the buyer confirms interest, the negotiations begin to determine deal details and final contract terms.
- Based on negotiations outcomes and available information, the buyer decides whether to purchase the unit or consider other options.
About Wafi Platform
Wafi is the government platform that’s responsible for regulating off-plan sales and leasing, as well as monitoring the real estate market to address violations transactions.
The platform also issues licences for conducting sales and leasing activities, regardless of the property type or its intended use.
Also read about: The Real Estate Units Ownership System.
Wafi Platform’s Role in Off Plan Sales Projects
This platform offers a large number of facilities and advantages for off-plan sales, including:
- The ability to purchase property units at lower costs with flexible payment plans that align with different construction progress stages.
- Sufficient guarantees to protect buyer’s rights through monitoring programs and regular supervision of licensed projects.
- Providing support and financing channels for projects related to off-plans sales and leasing.
Moving to the last point, off plan sales projects in Riyadh is a real partner of developing the real estate industry. Through Bayut Blog you can discover all of the real estate development plans, including projects, systems and investments.
