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Investing in Off-Plan Properties in Dubai

Posted by on June 25, 2020

Investing in Off-Plan Properties in Dubai
Lucrative markets, such as Dubai, offer immense opportunity for investors, especially in real estate. With potential buyers flocking to this growing economy for real estate investments, the sector has been transforming as a haven for off-plan property investment, particularly for those looking for higher returns — both short-term and long-term. This article aims to provide a comprehensive understanding of investing in off-plan properties in Dubai, the benefits and risks associated, and guidance on the next steps that potential buyers could take now.
What Are Off-Plan Properties?
Off-plan properties are real estate properties that are either partially completed or not yet constructed. Such properties are available for purchase directly from the developers even before they are ready.
Why Should You Invest in Off-Plan Properties in Dubai?
The most compelling reason you should make an off-plan property investment is the high return on investment from these deals. However, before deciding to invest in off-plan properties, you need to define your investment objectives: immediate occupancy, resale for higher returns, or leasing. Off-plan properties are most apt for those looking to resell them for a higher return or those who want to lease them. This is primarily because the property is available for a much lower price and the payment is done over an extended period.
Here are three main reasons why you should invest in off-plan properties in Dubai:
· Cheaper Than On-plan Properties
With increasing competition among developers, more flexible payment schemes and offers are awaiting potential buyers, and off-plan properties are available at the lowest possible price. While expats require to pay 25% down payment (20% for Emiratis) for completed properties, down payments for off-plan properties could be as low as 10%. Investors can make the remaining payment in instalments as each phase of the construction completes.
· Higher Return On Investment
Buying a property before its construction even begins offers the highest rate of return. This is because the value of the property keeps increasing as it nears completion. If you are aiming for a short-term investment with significant capital gains, it would be ideal to buy the property right before or immediately after the construction begins and sell it to investors looking for occupancy or leasing, or even for resale.
· Better Laws To Protect Buyers
The UAE government has legislated several laws, such as permitting developers to access funds accumulated from buyers only after the project has reached a certain stage of completion, to reinforce buyer confidence. The Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD) are two major authorities in the real estate sector who are responsible for protecting buyers from project delays, cancellation, or fraud.

What Could You Do Next?
Once you have defined your investment objectives, the safest way to embark on a property search is through a trusted real estate agent who has extensive experience in the field and is well versed with the property market in Dubai. The investment experts will be able to advise you on the best properties and investment plans suited for the current economic and political conditions, keeping in mind your financial goals.
At D&B Properties, we have the most experienced property managers who can guide you appropriately. As a trusted off-plan real estate agent dealing with the best developers in Dubai, a consultation with our experts can help you on your investment journey.

For more details, please contact: | +971565203470 |

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