Dubai is known as one of the most developed and luxurious cities in the world. The real estate market of the emirate offers not only deluxe properties for wealthy investors, but also high quality housing in the budget segment. The extreme versatility of properties in United Arab Emirates is a vivid characteristic of already finished real estate as well as objects under construction. The latter option is in high demand among foreign investors and those who want to make business in the real estate sphere. In this article, we will discuss the term off-plan means, pros and cons of this type of property, and what economic attractiveness it features.
Off-plan projects in Dubai
Off-plan property is a real estate under construction. Such objects are available for sale via a direct deal with a developer. Properties for sale off plan in Dubai are represented in the same types of housing as the already finished ones. Besides, projects under construction provide more favorable terms of purchase and provide an opportunity to receive income not only from the lease, but also from the increase in the market value of the acquired objects.
The metropolis attracts investors from various parts of the world, offering a wide selection of flats, houses, and villas from famous Emaar Properties, Dubai Properties, and Meraas. The developers provide investors with objects that are flexible at the stage of construction with a convenient payment plan and all sorts of bonuses.
Benefits of buying off-plan real estate in Dubai
There is no secret that all types of property in Dubai are popular among buyers. However, there are some specific benefits they can get when investing in off-plan homes.
Affordable pricing policy. The real estate market offers property for sale in Dubai under construction is almost 2 times lower than that of finished objects. At the same time, after each stage of construction work is completed, the market value of your asset will steadily increase.
- The process of payment. As a rule, local developers establish an interest-free installment plan in 60/40, 30/70, etc. This gives a clear picture of how much and when you need to pay to become an owner of a home in Dubai.
- Opportunity to redesign or redevelop a property in the process of construction. Of course, no one will allow buyers to do it themselves, but they have the right to discuss the changes with a developer and come to the solution.
- Ability to resell the property prior to construction completion.
- Increased investment opportunities. Lower cost of off-plan real estate gives buyers the opportunity to purchase objects in more popular areas with a better return on investment.
Possible risks when buying property off-plan
No matter what type of property you are going to buy, some risks are always present. It is especially connected with purchasing apartments or houses abroad. Still, apartments for sale in Dubai as well as houses and villas, are worth being more careful and more patient.
Let`s explore the list of possible risks appearing when purchasing off-plan objects:
- Off-scheduled date of completion. Perhaps, it is the most unpleasant drawback of properties off-plan. The situation in the world can change that will influence the budget of a developer and the construction will be delayed. To protect yourself from possible delays, you should choose reliable developers with a good business reputation. Besides, before signing the sales/purchase contract, it is necessary to make sure that it includes the detailed description of all the stages of construction and clear dates of their finishing.
- Changeable situation on the real estate market. Purchasing off-plan villas or flats in Dubai investors make a long-term investment. Such a type of property will give profit only in a few years. As the situation on the real estate market may change, it is important to be responsible in looking for an object and take into account every characteristic. Explore the location, the plan of the whole neighborhood, available infrastructure, number of tourists, most interesting offers, etc. To avoid being in the situation of losing money, it is recommended to buy off-plan properties in a growing market. Now in Dubai we are seeing exactly this situation.
- Lack of opportunity to resell the property. Currently, many developers require an investor to pay a certain portion of the declared value of the property before they authorize its resale to third parties. If you originally intend to profit from the sale of housing at a later stage of construction, you should check with the developer the minimum payment threshold, after which it is possible to conclude a new purchase/sale transaction.
Purchase of off-plan property in Dubai is a choice of an investor. If the immediate profit is at the top of criteria, it is advisable to focus on already finished projects. However, if you consider a long-term investment, buying off-plan real estate is a rational decision. To find out the best housing option, visit the website Emirates.Estate. The professionals from the real estate industry will provide every client with a detailed consultation of any project in Dubai. Having performed hundreds of successful deals, they will advise on how to eliminate risks buying off-plan and what objects will be more profitable in future.