Investment in Off Plan Properties in Dubai enjoys immense popularity in Dubai, thanks to the freehold property opening that expects back in the year 2002, which changed the real estate market of Dubai drastically. The market gets investment not only from local buyers but also from international buyers making it one of the hubs to invest money. The sales of off-plan properties in Dubai hit a 9-year high in 2017, with around 25000 units sold off-plan properties in 2017. The trend has been set and a lot of announcements are generating from the real-estate industry regarding off-plan properties in Dubai. Now the question arises, why should you invest in off-plan Dubai? The answer to this question is stated in the reasons provided below. Let’s have a look:
Here are five major reasons for investing in off plan properties in Dubai rather than in already constructed properties:
The first and foremost reason for investing in Off Plan properties in Dubai is that it is offered at comparatively lower prices than that of already constructed properties since these properties are purchased at risk. Investors and buyers both enjoy the flexible payment plans and lower prices altogether in off-plan properties in Dubai. In order to compete in the market, different property developers try to take lead by setting lucrative prices and payment schemes for the customers such as paying 50% right away and the rest at the time of completion.
United Arab Emirates (UAE) being one of the fastest-growing economies in the world, the investments in real estate here are quite promising offering a greater Return on Investment (ROI). In Dubai, the net-worth or value of the property increases a lot after the completion. So, even if you are paying for the property in instalments you will still notice a rise in the actual value of your property which will provide you with capital gains right away.
Rent is one of the key drivers of property income in Dubai. With thousands of international visitors each year visiting Dubai, there will always be demand for houses on rent. According to the Dubai Market Report of the year 2017, the return on investment has remained constant while the overall value of the property has decreased. So, either you invest in an off-plan property or purchase an already constructed property, chances are you will always generate a handsome rental income out of your property. This will give you a firm base and financial security in a vibrant city like Dubai.
As you might know, buying off-plan properties in Dubai is always a risk for the buyers but the government of Dubai, as well as real-estate regulatory authority, has come up with certain laws and regulations that protect buyers from fraud, cancellation or delay in the construction of the property. One of these rules is that buyers should make all their payments for the purchase of off-plan properties only in those banks which are approved by the Dubai Land Department (DLD). The property developers in Dubai can only offer the project to customers after the project is completed up to a certain percentage as verified by the project consultant.
Such measures reduce the risk of the buyer and allow them to invest more in the off-plan property market of Dubai assuring them that their property will be delivered to them on time without any hassle.
With the advancement in the economy of Dubai, a lot of off-plan constructions are taking place in Dubai giving buyers the variety to choose from a number of new and luxurious projects in Dubai. Whether the property is a villa, an apartment or a tower, buyers have a lot of options to choose from today in Dubai.
Every coin has two sides and off-plan Dubai is no less. Let’s take a look at the pros and cons of investing in off-plan Dubai to weigh your decision in terms of logical facts and figures to invest in the real estate market of Dubai.
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