The real estate industry of Dubai is backed by a flourishing economy, well-established laws and high-end infrastructure. Hence, the Emirate’s property market is considered a profitable segment for investment. Offering an array of lucrative opportunities in the real estate market, Dubai has attracted many international investors as well as local and international buyers.
While there is a high demand for the completed developments in the Emirate, off-plan properties in Dubai have also captivated the interest of local and international buyers. Many off-plan properties in the Emirate are sold out based on the basic infrastructure, facilities and amenities as stated by the developers. This is because there are many benefits of off-plan property investment in Dubai.
If you are also interested in buying off-plan property in Dubai, then read further to know why you should invest in off-plan projects.
WHY YOU SHOULD BUY OFF-PLAN PROPERTIES IN DUBAI
Here detailed are some of the prime benefits of considering off-plan investment in Dubai:
LOW COST WITH FEASIBLE PAYMENT OPTIONS
One of the benefits to buy off-plan property in Dubai is that rates are comparatively low to those completed ones. Thus, anyone with small capital can also go for any off-plan property investment in Dubai.
Besides, developers offer flexible payment plans and therefore, it becomes feasible and affordable to buy off-plan property in Dubai. Basically, developers usually compete with each other on rates and flexible payment plans. This gives off-plan property’s seasoned and new investors/buyers an opportunity to take advantage of the low rates.
GAIN MAXIMUM RETURN ON INVESTMENT (ROI)
If you want to buy off-plan property in Dubai with small capital, then better book an off-plan property when it’s announced. Also, the best time to get the lowest price is when the construction on the off-plan project begins. Moreover, you can choose the unit with perfect views.
An off-plan property gradually gains value and hence, you can gain maximum ROI, depending on which stage you opt to sell it. If you sell the property after completion, then you can earn significant returns as the value and rates of ready property in the Emirate are much higher than an under-construction project.
Besides, it is worthwhile to note that the value of a property is significantly influenced by the locality and neighbourhood’s popularity. Hence, when you opt to buy off-plan property in Dubai, don’t forget to consider these factors for high returns on your investment.
DECENT RENTAL INCOME
The villas and apartments for rent in Dubai always remain in demand, given the high influx of expatriates. Thus, with off-plan investment in Dubai you can earn a high to decent rental income. Once your off-plan property turns to a ready property, you can rent it out. It is worthwhile to note that the rental value of property varies, as it is significantly influenced by the locality, type of property, amenities and other factors.
BUYER’S INVESTMENT REMAINS SAFE
Given that your investment in off-plan property may be at risk, Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD) have taken measures to make your investment safe. The developers of off-plan projects can access the funds deposited by buyers only when the project reaches a certain completion level. Also, the buyers are supposed to pay their off-plan property instalments or make down payments at DLD-approved banks only.
If the developer requests funds access, a project consultant first verifies the status of the project, and then only access is granted.
Furthermore, the developers are required to submit a 10% guarantee performance bond by the contractor and for bank guarantee 20% of construction funds.
All these measures have been taken by authorities to ensure buyers can buy off-plan properties in Dubai without worrying about fraud, cancellations and delays. However, in case of any complaint against a real estate developer, investors and property buyers can register their complaints on Real Estate Violation System (RVS) in Dubai.
ARRAY OF OFF-PLAN PROJECTS IN DUBAI
Those looking for Dubai off-plan property for sale have numerous options to choose from. Whether interested in buying a villa in Dubai or an apartment, investors/buyers can easily opt for off-plan projects based in popular areas or on the outskirts of the Emirate. You can choose the off-plan project that fits your budget, is based in your favourite location, and offers your preferred amenities and facilities.
Here listed are some of the areas where you can opt to buy off-plan property in Dubai. You will find off-plan projects offering townhouses, villas and apartments for sale:
- Meydan City
- Dubai Water Canal
- Jumeirah Beach Residence
- Sobha Hartland
- Town Square
- Jumeirah Village Circle
- Emaar Beachfront
- Business Bay
- Palm Jumeirah
- Al Furjan
- Dubailand
- DAMAC Hills and many others.
These were some of the benefits of investing in an off-plan property in Dubai. Despite the benefits, it is also important that you consider important things before buying an off-plan property. On the other hand, it is worthwhile to note that property investments always come with certain risks, whether you go for an off-plan or a ready project. Therefore, it’s better to follow tips to minimise risk on property investments in Dubai.
Stay tuned to the top property blog of the UAE for more tips and information on buying, renting and selling properties across all the Emirates.
