Off-plan properties have gained popularity among real estate investors in the UAE, including Abu Dhabi. The capital has seen new developments with attractive payment plans and amenities. Besides, off-plan projects are mostly delivered before the deadline. That said, there is still a risk of delay. For that reason, investors must weigh the pros and cons of buying off-plan property in Abu Dhabi.
Let’s find out the advantages and disadvantages of investing in Abu Dhabi’s off-plan projects.
Things to Consider When Buying an Off-Plan Property in Abu Dhabi
When choosing from ready or off-plan properties, one must weigh the pros and cons of buying each property in Abu Dhabi. Since off-plan properties are the ones sold before completion, investors must look for a real estate developer in Abu Dhabi who has delivered popular projects.
While off-plan properties come with some top facilities and amenities, delays and quality of delivery can also be a question. That’s why understanding the pros and cons of buying off-plan property in Abu Dhabi becomes essential.
Benefits of Buying Off-Plan Property in Abu Dhabi
Payment plans, amenities and lower prices than the ready projects make off-plan an investment opportunity. Additionally, the rental market is on the rise, offering impressive rental yields when the project is completed.
Here are the various advantages of buying off-plan property in Abu Dhabi.
Lower Cost
Low cost is the main pro of buying off-plan property in Abu Dhabi. Since off-plan projects are sold before the construction, developers offer them at a lower price.
Payment Plans
Real estate developers offer different payment plans for the convenience of the investors. Some properties have a 20-70-10 rule, whereas others have a 20-80 rule. While the latter means 20% payment at the time of purchasing and the rest in the instalments, the 20-70-10 rule refers to 20% upfront payment, 70% in the instalments and 10% after the handover.
Payment plans in the UAE have their pros and cons. For instance, project delays and construction problems can make this benefit a con.
Safe Investment
Municipality and other real estate authorities monitor the off-plan property payment plans and construction updates. For that reason, buyers can feel safe about their investment. It is also a reason for buying off-plan in Dubai and Abu Dhabi.
Impressive ROI
When considering the pros and cons of buying off-plan property in Abu Dhabi, considering the returns is essential. After the project is ready, one can earn an impressive rental yield ranging from 5% to 10%. In the longer run, off-plan properties can give investors excellent capital gains.
For example, Bloom Living in Abu Dhabi, an off-plan project, has an apartment for sale starting from AED 591,000. The price will increase once the project is completed and gains popularity.
Challenges of Buying Off-Plan Property in Abu Dhabi
While there are advantages, one must not ignore the cons of buying off-plan property in Abu Dhabi. Similar to the risks of buying off-plan in Dubai, there are certain things one must consider while investing in Abu Dhabi’s off-plan projects.
The following are the cons of investing in the off-plan in Abu Dhabi.
Delayed Projects
Off-plan projects are sold when they are under construction or planning. Delays are possible due to changing timelines, legalities or other factors. A delayed project is a potential disadvantage.
If an investor buys an off-plan project, they must choose the right payment plans. Moreover, the investors must check the developer’s previous projects and make the decision accordingly.
Fluctuating Market Price
Abu Dhabi has a steady real estate market. However, any fluctuations can lead to a drop or rise in property prices. When investing, one must take into account the project details to avoid a loss.
According to the Abu Dhabi annual sales report 2023, the property market saw a steady run, with no major drops. That’s why the off-plan buying in Abu Dhabi is safe and beneficial.
Lack of Project Information
Some projects don’t have much information. It is one of the cons of buying off-plan property in Abu Dhabi. Investors must ask for every detail from the developers of the project to make sure their investment turns greener after the off-plan project is completed.
Plus, market research is part of the guide to buying property in Abu Dhabi. A buyer or investor must take into consideration all the pros and cons of buying off-plan property in Abu Dhabi to earn rental yield and higher ROI in future.
FAQs
Is it a good idea to buy property in Abu Dhabi?
Yes. Abu Dhabi has one of the most steady real estate markets. Whether you choose a pre-owned or new property, you must learn the differences and conduct market research to gain benefits.
Is buying off-plan good?
Yes. Several pros of buying off-plan property in Abu Dhabi outweigh the cons. For instance, project delay is governed by the authorities and can result in fines to the developers.
These were all the pros and cons of buying off-plan property in Abu Dhabi. When you are choosing a property for sale in Abu Dhabi, you must be aware of the laws and regulations to avoid misconduct.
Stay tuned to the dubizzle Property blog to learn more about the factors and considerations for buying or renting a property.
Related Posts
