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Why are Dubai Off Plan Properties Worth Investing Options?
A strong infrastructure coupled with a stable political environment and growing economy is why investors have unwavering confidence in Dubai real estate** sector. Despite COVID-19 led pandemic slowed down every economic sector, Dubai is still growing at the speed of light. Global investors flock to Dubai to park their hard-earned savings and this magical city always welcomes them with numerous investment options. If we talk about the current obsession in the realty sector, it is none other than investment in off plan properties in Dubai. Since the government introduced freehold properties regulations, Dubai properties have garnered attention and genuine interest from potential international investors. Corona led turmoil has affected everyone’s household income but it has also taught us the importance of financial health – therefore, people have been focusing more on investment, no matter how scarce are their resources. Everyone knows that off plan properties **are available at flexible payment plans and reasonably priced as compared to ready properties; thus it has become a preferred investment option. Not every investment opportunity is equal and there are several concerns that you must consider before signing any deal related to Dubai off plan properties. Following is the guide that enumerates important pointers for off plan property investment in Dubai and why you must pick this option and what are the risks to be aware of.
Why to invest in Dubai off plan properties?
Save on down payment
Buying an off plan property allows investors to purchase an unconstructed or under-constructed property and in most cases, directly from the developer, which means these properties are available at the lowest possible price. Not just the total price is lower but the down payment is also a meagre amount for off plan properties. For Dubai off plan properties, you need to pay only 10% of the total price of the property as the down payment.
Sell before completion
With projects put forward by reliable developers and market conditions, off-plan properties always remain in demand. Investors can sell their properties before the development has even been completed at a considerable profit.
Capital gain
Real estate in Dubai is one of the most promising investment options in terms of returns, investors’ safety and security. Investing in off plan property means buying it at the lowest prices and based on performance indicators, we can claim that the value of off plan properties will increase upon completion. Moreover, you pay in instalments so you can expect a significant capital gain when you sell it after completion.
What are the potential risks associated with off plan properties?
Investing in off-plan properties in Dubai is a viable option but there are few things that you must be careful about in order to keep the process simple and smooth.
Location is key
Never underestimate the power of prime location, even if you are buying an off plan property. Location is almost directly related to the return, you will earn on your investment. The better the location, the higher the ROI. Therefore, do not invest in off-plan properties without conducting thorough research on the location and the developer’s track record.
Be ready for delays
Why is it important to conduct a thorough check on who is the developer and the number of projects, he has already delivered in the market? It is because delaying in delivery is what the majority of buyers face after investing in off-plan properties. It may not seem a bigger issue, if you buy it for investment purposes only but it can be a source of tension for someone, who is considering it as their first home and waiting for it to be completed.
Shift in market trends
Return on Investment (ROI) depends upon market conditions, demand and opportunities but tables can be turned sometimes. Real estate market is volatile and anything can happen between signing the purchase deed and receiving the keys. To make a well-informed decision, you need to discuss your investment plans with real estate experts, who understand the market better than you. You can contact experts at Copperstones Properties with your query and we will get back to you with a strategic plan that suits your needs and fits into your budget.
Assess your financial condition
Different developers offer different investment options for off plan properties. For instance, after booking an off plan property in Dubai, a buyer needs to pay 70% of the total amount during the development process and the rest of 20% is payable after completion. While, some follow the 50% rule, where an investor needs to pay 50% during the process and the remaining 50% of the total amount after the project is completed. Pick a project after conducting thorough research and choose a payment plan that suits your circumstances and financial conditions in order to keep you from the plunge.
Prepare for the worst
The return on investment (ROI) from off plan properties is closely associated with a number of features but understanding the risks can help you prepare for any unfavourable situation. And the first and foremost important thing is to pick a project that is registered with the Real Estate Regulatory Agency (RERA). According to property laws in Dubai, the property developer and the land on which a project is proposed must be registered with RERA. Moreover, the developer must have valid approval from the Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA). Before you pick any off plan project in Dubai, make sure you are in contact with a reliable real estate agent who understands Dubai property market thoroughly and ask for relevant documents and approvals in order to avoid any challenge in future.
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