Are you interested in buying off-plan properties in Dubai? If you are planning to buy an off-plan property in Dubai, you have come to the right place. Since Dubai opened up its freehold property market, the city has become home to an incredible number of real estate projects. However, Dubai is heaven for those who are looking to put down their money in the real estate sector.
Here are the main reasons for buying off-plan properties in Dubai.
Attractive offers and lower prices make the off-plan property slightly more affordable. However, one of the perks of investing in off-plan properties in Dubai is that they are non-constructed projects and are offered at lower prices.
Investors and buyers get benefit from lower prices and greater financial flexibility that off-plan properties offer. Numerous projects being announced every month, developers compete mainly on prices such as paying 50% upfront and 50% upon completion.
As UAE is one of the fastest-growing economies in the world, so the value of the property is likely to increase once it is completed. While you are 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 capital gains you decide to sell before or after completion.
Locality and neighborhood’s popularity are factors that plays a role in property market value appreciation. Investors of off-plan property in Dubai gain quick profit by selling before completion, provided the project has gained popularity in the market.
Rental income is one of the key drivers for off-plan properties in Dubai. In 2017, according to the Dubai real estate market report, ROIs have remained stable despite falling property prices across the emirate. Whether you buy off-plan properties in Dubai, you will earn a decent rental income from real estate investment.
RERA (Real Estate Regulation Authority) and Dubai Land Department (DLD) in the UAE took numerous measures when off-plan properties in Dubai come at a risk, to grant buyers added protection against delays, cancellations or fraud. The most important rule is that buyers must make payments for off-plan property purchases at DLD approved banks.
Access funds can only be permitted by the developers when the project has reached a certain stage of completion. This will be verified by a project consultant. They passed another law which states that developers must provide 20% of the construction funds as bank guarantee along with the 10% guarantee performance bond by the contractor. This rule reinforces buyers’ confidence in the off-plan property market, and the buyers invest with certainty that under normal circumstances properties will be delivered.
The off-plan properties in Dubai are positively buzzing with activity. Off-plan buyers choose a wide variety whether it is off-plan apartment or villa, no matter what’s the location, price or property type. From the popular Downtown Dubai to the new communities popping up on the outskirts of the city.
RULES TO CONSIDER BEFORE INVESTING IN OFF=PLAN PROPERTIES IN DUBAI:
Before investing in off-plan properties in Dubai there are some rules necessary to keep in mind. These are some of the things investors can face while buying off-plan properties in Dubai:
PREPARE FOR DELAYS: This is the most common issue buyers face while buying off-plan properties and can be a hindrance for those who are renting and were planning to move into their new home.
MANAGE EXPECTATIONS: You have to manage your expectations before buying an off-plan property in Dubai based on a house-show, and some floor plans. Make sure which type of material is used for construction and research the developer you are planning to buy from and check out some of their other ready properties to get an idea about the finished product.
MARKET FLUCTUATIONS: Anything can happen between the time you purchase the property and receive the keys because market value fluctuates. Be mindful of real estate market trends and make an informed decision when you decide to invest in off-plan property in Dubai.
In comparison to constructed developments, they are of lower prices, higher capital appreciation as the property reaches completion. They have attractive and flexible payment schemes and have lower upfront costs.