Investing in off-plan properties pays off, and has been recorded to generate exponentially higher revenues. Especially in booming cities such as Dubai with high tourist traffic; ex-pats and multi-national residents have notably taken leisure in property for sale in Dubai. Many have taken a liking to the city’s vast portfolio consolidating modern and minimalist designs to reflect the city’s urban lifestyle.
At the time of their purchase, off-plan properties in the market are bought at a lower price when compared to 100% market-ready projects. Ready-To-Move or completed projects are often sold at a higher price depending on fluctuating market prices. In simple terms, the faster you buy it, the cheaper it will be.
Flexible Payment Plans
Off-plan properties are offered based on a flexible payment plan spread across the build timeline. Once acquired owners will also be able to sell the unit before its completion. This is particularly beneficial because when compared to ready-made properties, off-plan homes have lower down payments and upfront costs when compared to ready-made properties which require 25% of the property price.
Higher Rental Yields
In the long run, investing in off-plan property offers more room for securing higher income or revenue. Dubai as a bustling metropolitan city and buzzing economic hub is assumed to always pose a demand for housing options. There are a number of ways a property investment can go and there’s no better place to oversee its potential.
Acquiring a property in its construction phase, can many a time be moulded to the requirements of the buyer. It is also a brand-new unit, which minimizes the risks of dealing with maintenance issues. Buyers will also be able to cherry-pick the units with the best features and views be it villas or apartments for sale – and oversee small to major custom changes.
Growth of Property Value
As the market continues to grow, by its completion period – homeowners will be able to sell based on the current market price; even before the build is completed.
Dubai has a growing metropolitan city and is no doubt generating billions of dollars from the high traffic of tourists every month. As a way of taking advantage of this upward momentum, many homeowners even chose to rent out their property for a while, before selling it for good.
Things To Consider Before Investing In Off-Plan Properties
Whether you are considering buying an off-plan property in Dubai or are already in the process of figuring nitty-gritty of acquiring a property. Like every investment, off-plan projects could also prove to be risky assets if not executed efficiently.
Competitive Market Analysis
Before making any investment it may be helpful to bear in mind that the market will always be vulnerable to factors such as currency fluctuations, tax regulations and current market prices. Hiring qualified real estate agents in Dubai can help you make a more informed decision about your investment. Professionals in the field are capable of conducting a completely competitive market analysis, allowing you to minimize your risks as much as possible.
Industry Laws and Local Regulations
Some of the main perks of investing in property in Dubai – is the fact that it is well-versed with buyer protection laws. The U.A.E’s consumer protection law protects homeowners from any project delays and cancellations.
The Dubai Land Department also has a strict set of rules and regulations and is the main government entity overseeing real estate in Dubai.
RERA – which is the regulatory arm of DLD plays a key role in maintaining and enforcing an effective regulatory system for its stakeholders.
Moreover, Dubai’s well-equipped judicial system handles all matters of property purchases, legislation and fees and involves costs including:
- Service Charges
- Transfer fee
- Admin Fee
- DLD Registration fees
Read more here: Dubai Property Laws
Investing in Off-Plan Properties in Dubai
Dubai as a thriving economic hub has accumulated a pool of the region’s most desired luxury projects. The city’s mastermind developers such as Nakheel, EMAAR, Dubai Holding Group, MERAAS, and Sobha have been the trendsetters of real estate. The city’s property market has cultivated some of the world’s record-breaking high-rises and luxury investments.