Off Plan Real Estate Investment in Dubai
5 Reasons to Consider Off-Plan Property Investment in Dubai
Nr. 1
Lower Prices & Flexible Payment Plans
One of the most obvious perks of investing in off-plan property for sale is that these not-yet-constructed projects are offered at significantly lower prices. Attractive offers and feasible payment plans make off plan property investment slightly more affordable and practical when compared to constructed developments, which are valued at a higher. Both
seasoned investors and first-time buyers benefit from lower prices and greater financial flexibility that off-plan properties offer.
With numerous projects being announced every month, developers compete mainly on prices and lucrative payment schemes such as paying 50% up front and 50% upon completion or the “1% per month” payment plans. Some of these go well beyond 40% post-handover, giving off-plan property buyers a major advantage.
Nr. 2
Capital Gains
The UAE is one of the fastest growing economies in the world, so real estate investments here are extremely promising in terms of return on investment (ROI). The value of a property is likely to increase once it’s completed, irrespective of the “locked-in” purchase price before construction. So even while you’re paying off the investment in phases as per the developer’s payment plan, you could witness a rise in the market value of your property and expect significant capital gains should you decide to sell before or after completion. Factors that play a role in property market value appreciation is the locality and neighborhood’s popularity. If the surrounding area is under development at the time of your off-plan property purchase but is steadily evolving into a potentially well-rounded community, then this would inevitably lead to an increase in the property’s market price. Off-plan property investors can also turn a quick profit by selling before completion, provided the project has gained popularity in the market.
Nr. 3
Off plan investment offers High Rental Yields
Rental income is one of the key drivers for property investment in the UAE. With a steady influx of expats in the country, a trend which is showing no signs of slowing down, there will always be demand for housing options in Dubai.
As seen in our 2019 Dubai Real Estate Market Report, ROIs have remained stable despite falling property prices across the emirate. So whether you buy off-plan or ready properties in Dubai, chances are you will earn a decent rental income from your real estate investment, giving you financial security and a firm base in this vibrant city.
Nr. 4
Buyer Protection Laws in Dubai
While off-plan properties come at a risk, there are numerous measures taken by RERA (Real Estate Regulatory Authority) and Dubai Land Department (DLD) in the UAE to grant buyers added protection against delays, cancellations or fraud. One such rule is that buyers must make payments for off-plan property purchases at DLD-approved banks. Developers will only be permitted to access funds until the project has reached a certain stage of completion. This will be verified by a project consultant. Another law passed recently stipulates that developers must provide 20% of construction funds as bank guarantee along with the 10% guarantee performance bond by the contractor. Such measures reinforce buyers’ confidence in the off-plan property market, making it a safe climate to invest with certainty that under normal circumstances properties will be delivered. The most common issue facing off-plan property buyers in Dubai is a potential delay in delivery.
Nr. 5
Wide Variety of Off-Plan Projects in Dubai
From the ever-popular Downtown Dubai to the new communities popping up on the outskirts of the city, the Dubai off-plan property market is positively buzzing with activity. Whether it’s off plan apartment or villa, no matter the location, price points or property type, off-plan buyers have an even larger variety to choose from today.
Wondering where in Dubai to invest in off plan real estate? Take a look at some of the most popular off-plan communities in Dubai.
Things to consider before Investing in off-plan properties in Dubai:
Before going ahead with any off-plan investment, there are a few things every investor should keep in mind. Here are some of the things investors can face when considering buying off-plan projects in Dubai.
* Prepare for Delays: This is one of the most common issues facing off-plan property buyers and can be a hindrance especially for those who are renting and were planning to move into their new home. It’s good to have a contingency plan to accommodate delays, so you’re not caught off-guard.
* Manage Expectations: You may have to base your decision to buy an off-plan property in Dubai based on brochures, a show-house and some floor plans. Quality of construction materials used may alter the end result. Make sure you research the developer you’re planning to buy from and check out some of their other ready properties to get an idea of what the finished product will look like.
* Market Fluctuations: While the current climate points towards opportunities for capital gains and high ROI from property investment, the opposite could also be true. Anything can happen between the time you purchase the property and receive the keys. Be mindful of real estate market trends and make an informed decision when you decide to invest in off-plan properties in Dubai.
Premium, Off Plan for Sale
At Aseel Properties, we have access to some of the best off plan properties in Dubai, and across United Arab Emirates.
As exclusive agents for off plan listings, we're able to schedule private viewings for the properties.
Our off plan specialists work with you to find your perfect dream home, with a bespoke list of villa selections that match your unique needs.
