Why Invest in Dubai Off Plan Properties?
From having a cutting-edge world-class infrastructure, a stable political environment, and being one of the fastest growing economies in the region, investing in Dubai real estate has become a profitable venture for many investors.
Investing in off-plan property is one of the easiest ways to acquire real estate in Dubai, as you purchase at launch price, making it the lowest cost of entry into the real estate market.
What does off-plan property mean?
It means purchasing a property directly from a developer before construction has started or before the project’s completion. This is a great investment opportunity, as it allows you to purchase at the first price point which is typically the lowest the property will ever be sold at and it gives you additional benefits such as services charge waivers, payment plans at 0% interest and DLD waivers.
Below are 5 reasons why you should consider investing in Dubai off-plan property.
One of the most considerable advantages and attractive things about off-plan properties in Dubai are the lower prices. Since the properties are not yet constructed, developers offer enticing and significantly lower prices than if the project was already built. The attractive offers make it more affordable, unlike constructed properties which are valued at a higher price.
Dubai has one of the fastest developing economies in the world, meaning real estate prices are on the rise, especially now that developers are being more controlled as to how much can be built. This is regulating the supply of units, while demand keeps increasing. Due to covid there has been a huge market demand in luxury real estate as more and more investors look to Dubai as a safe haven. The benefit is that once the project is completed your property will be worth more than what you originally paid for.
Low Down Payments
Though upfront payments vary from one developer to the other, they are typically on the lower end, making the buy in more affordable. Off-plan properties offer feasible payment plans which favor both seasoned investors and first-time property buyers. Lucrative payment plan such as paying as low as 10% down payment is a great advantage to buyers that don’t want to tie up all their cash right away.
Post-handover Payment Plans
In some instances, developers will offer investors a post-handover that ranges anywhere from 2-5-yeas post project completion. This means that within that period, you can rent the property short or long term and use the income generated to repay the loan at a 0% interest. With a constant increase of expats moving to Dubai, the demand for housing options will continuously be on the rise.
You Can Sell the Property Before Completion
If your looking to flip your property buying off plan is a great option too. Selling your off-plan property at a profit before completion is a way for you to mark up the price and for the next buyer to still take advantage of the developer’s payment plan. When the project has garnered popularity in the market and has gotten sold out by the developer, it becomes easier to sell at a considerable mark up before completion.
Things to Consider Before Purchasing Off-Plan Property in Dubai
1. Check whether the property is registered with RERA
Since you don’t want to invest blindly, you should check and ensure that the property is registered with RERA (Real Estate Regulatory Authority).
2. Do your research
It is always recommended to do research that will help you know details about the property you are interested in buying. Get to know its location, the developer and obtain a professional opinion and make sure all paperwork is in order before making any payments.
3. Know the state of the property
Has construction of the property commenced? If yes, how far along is it before completion? is When is the expected handover date? To avoid any issues, an investor should always be aware of these questions before committing to the project.