For people wanting to invest their hard-earned cash in real estate, Dubai is a refuge. Investing in off-plan properties is especially popular by purchasers in the area. The 2002 opening of freehold homes to foreign buyers drew a lot of attention to the Dubai real estate market, both domestically and globally. Do you want to become one of them? Here are five justifications for investing in off-plan real estate in Dubai.
Reasons for Dubai off-plan property investment
These are five good reasons to think about buying off-plan real estate in Dubai.
1. Lower prices & flexible payment plans
Naturally, one of the biggest benefits of purchasing off-plan real estate is that these unfinished developments are available for much less money.
When compared to ready-made buildings which are more expensive, off-plan property investing is somewhat easier and less costly due to attractive deals and workable payment schedules.
Off-plan houses offer greater financial versatility and lower pricing, which appeals to both novice and seasoned investors alike. Developers compete mostly on pricing and appealing payment plans, including paying 50% up front and the balance of 50% after completion or the “1% per month” payment plans, as many projects are launched each month. Certain ones surpass 40% after the handover, providing off-plan house buyers with a major benefit.
2. Capital Gains
Since the United Arab Emirates’ economy is one of the fastest-growing in the world, real estate investments there have very high potential returns on investment (ROI). No matter how much was “locked in” when purchasing the property before building began, the value of the property will undoubtedly increase when it is completed.
Therefore, you could see an increase in the market value of your house and expect large financial gains should you choose to sell before or after completion, even while you’re paying off the investment in stages in keeping with the developer’s payment plan.
Property market value appreciation is influenced by the neighbourhood’s appeal and the surrounding area. In the event that the area is still in the early stages of building but gradually transforms into a possibly well-rounded community, the market value of your off-plan property will undoubtedly rise.
When an off-plan property project becomes well-liked by the public, investors might make swift money by selling the unit before it is finished. If you know what to do, it is possible to sell off-plan condominiums in Dubai.
3. Off-plan investment offers high rental yielfds
In the UAE, one of the main factors driving property investment is rental revenue. Housing alternatives in Dubai will always be in demand due to the country’s continuous inflow of foreign residents, a trend that shows no signs of slowing down.
Purchasing an off-plan apartment or villa is expected to result in a reasonable rental yield from your real estate investment because the property will be fresh and fitted with all the newest features. Alaya and Equiti House are two of the best off-plan villa and apartment complexes, based on Bayut’s H1 2023 Dubai sales market study.
4. Buyer protection laws in Dubai
Although purchasing an off-plan property carries some risk, consumers are given more protection against fraud, delays, and cancellations by the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (TERRA) in the United Arab Emirates.
A particular law requires consumers to pay for off-plan real estate transactions at banks that have been certified by the DLD. Funding will only be available to developers if the project reaches a specific level of completion. Someone with experience on projects will verify this. According to a different rule, developers have to give a bank assurance for 20% of the construction funds and a 10% guarantee satisfaction bond to the contractor.
These kinds of steps strengthen buyers’ faith in the off-plan real estate market, giving investors peace of mind that, in most cases, their houses will be delivered.
5. Wide variety of off-plan projects in Dubai
Today’s buyers have even more options, ranging from Downtown Dubai to more recent construction like Dubai Hills Estate and The Valley. Are you unsure about where to buy off-plan real estate in Dubai? View some of the most well-liked off-plan projects in Dubai.
Things to know before you buy off-plan property in Dubai
A few factors are important for all investors to consider prior to making any off-plan investment. Here are some issues that investors may run across when thinking about buying off-plan real estate in Dubai.
Prepare for delays
This problem affects buyers of off-plan real estate and may provide challenges, particularly for those who are renting and intend to move into their next home. It’s a good idea to have a backup plan in case of delays so you’re not caught off guard.
Manage expectations
Brochures, a show home, and some floor plans can be used as the basis for buying an off-plan property in Dubai. The outcome might change depending on the quality of building materials employed. To get an idea of what the final product will look like, please do some research on the developer you want to buy from and tour some of their other completed houses.
Manage fluctuations
Although the present market indicates investing in real estate might yield significant cash gains and return on investment, the contrary may also be true. Between the time you buy the home and get the keys, anything might happen. When buying off-plan real estate in Dubai, keep an eye on the trends in the real estate market and make a wise choice.
