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.
What is Oqood in Dubai? Oqood Dubai Defined
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:
- Management of off-plan portfolio
- Sales and purchase management
- Tracking of project progress
- Payment management
- Legal protection of rights and responsibilities
- Account and contract management
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.
What is an Oqood Certificate?
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.
6 Major Benefits of Oqood Dubai for Buyers & Developers
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:
1. Transparent and Streamlined Property Management
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.
2. Easy Record Keeping
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.
3. Protection from Fraud
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.
4. Property Payment History
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.
5. Tracking Project Progress
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.
6. Bilingual Support for Foreign Investors
Since many foreign investors invest in off-plan properties, the portal features bilingual support in Arabic and English.
What is the Difference between Oqood Certificate and Title Deed?
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.
Oqood Dubai Portal Sections
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:
a) Properties
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:
- Search for various off-plan properties like buildings, residential apartments, and villas
- Add/edit units to your current off-plan investments
- Add/edit details of your off-plan investments
- Add new properties to your off-plan list
- Set up payment plans
- Raise property termination requests for sold properties
b) Participants
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:
- Choose the “Participant Management” or “Company Management” option to initiate the process.
- Enter the personal or contact details in the search bar to find particular participants you’re interested in.
- Add their names and details (individual or company) in English or Arabic.
- Enter other details like contact, passport, residence, and personal information.
- After adding details, click “save,” and the platform will add a participant to your portal profile.
- By repeating this process, you can add multiple participants.
c) Procedures
“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:
- Contract details
- Lease-to-own properties
- NOCs
- Registering sale of mortgaged property
- Mortgage pre-approval
- Property approval
- Property modification
- Property cancellation
- Voucher details
- Project name
- Property numbers
- Property type
d) NOCs
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.
e) Contracts
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:
- Lease certificate
- Initial sale contract
- Mortgage contract
- Dismortgage certificate
f) Vouchers
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.
g) Administration
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.
Oqood Dubai; Frequently Asked Questions
How much does Oqood in Dubai registration cost?
Investors must pay 4% of the original property price as Oqood service registration. Investors must also ensure that the percentage applies to the actual price and not the selling price. Lastly, investors should pay this fee directly to the developer.
Which documents do I need for Oqood Dubai service registration?
Generally, you need to have the following documents for successful Oqood service registration:
- Authorization letter: Printed on the company letterhead and signed and stamped by the authorized professional
- Power of attorney
- Copy of company trade license
- Identification documents like Passport, Emirates ID, or Visa of the signatory person
- Copy of passport with the visa page for the requested user
- You may also need other documents depending on the procedure and sales contract
How can I contact Oqood Dubai customer support?
If you have any queries, complaints, or suggestions regarding Oqood, contact DLD customer support at +971-800-4488.
Oqood Dubai—Summing it up
Oqood portal makes investing in off-plan properties incredibly safe for buyers. Thanks to this portal, many foreign investors have benefitted from a seamless investment experience.
It is important to note that a portal alone may not be enough to navigate Dubai’s complex and ever-evolving real estate sector.
If you are a new investor who wants to avoid making costly mistakes, it is best to consult a real estate professional before investing.
We at Orchid Homes can guide you and help you make a profitable off-plan investment that is safe and offers high returns on investment. Feel free to contact us.