Dubai is known for its recognized worldwide real estate developments. It is home to the tallest buildings and beautiful man-made islands developed by major developers in UAE, such as Emaar Properties, Nakheel Properties, Dubai Properties, and DAMAC Properties. In line with Dubai 2040 Urban Master Plan to provide the highest standards of urban infrastructure, developers are making huge efforts to improve the existing infrastructure and develop new projects, whether their status is completed or off-plan. Let’s find out together the meaning of off-plan projects.
Off-plan projects are developments that have not been built or are still under construction. Investors who decide to invest in off-plan projects will sign a contract with a developer agreeing on certain conditions, including the down payment and installments that will be paid until the project is finished.
There are a lot of off-plan properties in Dubai found in very well-known locations, such as Downtown Dubai, Business Bay, Dubai Marina, and Palm Jumeirah, where investors can choose the most suitable properties for them. It is worth noting that these types of projects attract the attention of many local and international investors. In the next lines, we will highlight why investors prefer to invest their money in off-plan properties.
There are many benefits investors will reap from putting their money in off-plan properties in Dubai, including:
In comparison to completed properties in Dubai, off-plan properties are considered less expensive. Investors can get a property at lower prices and receive offers and discounts, allowing them to save a lot of money.
In addition, developers provide flexible payment plans that are suitable for the investors’ budget. They will not pay the entire property price in full, but they will only pay a smaller amount as a down payment and the remaining cost will be paid in installments.
Investing in off-plan properties is highly profitable if you decide to sell or rent your property after the project’s completion, as its value will increase. In the case of selling your property, you will sell it for more than the price it was initially purchased at and will gain a high ROI. In the case of renting the property, you will gain high rental yields as there is a constant demand for rental properties in Dubai due to the large number of expats living in the emirate, making the rent prices high in most times, depending on the season and market fluctuations.
Investors in off-plan properties are protected against delays, cancellations, and fraud thanks to the laws regulated by Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD). One of the laws is that investors have to make the payments of off-plan properties to the banks approved by DLD, and developers will only be able to access the payments once the project is finished. This will encourage investors to invest in off-plan properties as they are sure that the property will be delivered on time.
We all agreed that investing in off-plan properties is considered a good investment, but there are some tips you should consider before making such an investment. Here are some:
Investing in off-plan property might be risky, as you depend only on images and brochures when choosing the property. For that reason, you have to choose a trusted real estate developer with a well-earned reputation and good reviews from previous customers who are known to deliver quality projects on time and within the agreed budget.
It is important to do extensive research before investing in off-plan properties. Research about the property, its location, and the overall costs, and then determine the best property that suits your needs and budget, and think of the benefits you will reap in the future from this investment.
Before investing in off-plan properties, it is advisable to work with certified real estate agents in Dubai where thanks to the RERA licenses they obtained have extensive knowledge about the real estate market in Dubai and the top developers, and can help you choose the best off-plan property. If you want to know how to choose a professional real estate agent in Dubai, click here.
Before signing the contract with the developer, you have to read it carefully and make sure that there are no hidden conditions that limit you from selling or renting the off-plan property in the future.
After knowing all the benefits of investing in off-plan properties in Dubai, are you ready to invest in these types of properties? If you have already taken your decision, contact RE/MAX UAE now by calling +971 4 589 7376 or contact us here. With the help of our trusted, certified, and licensed real estate agents, we will help you make the right investment in off-plan properties.