Dubai is a haven for people wishing to spend their hard-earned money in the real estate market, with a burgeoning economy, solid political infrastructure, and excellent returns on property investment. Particularly among buyers in the area, off-plan property investments are extremely popular. Since 2002, when freehold homes were made available to foreigners, the Dubai real estate market has seen a significant increase in demand from both domestic and foreign buyers. With over 25,000 units sold, Dubai off-plan property sales in 2017 reached a 9-year record. With more launches and announcements coming from the real estate sector, the trend appears to be continuing. We give you five compelling reasons to enter the real estate market through this feasible route and invest in off-plan properties in Dubai. Dubai has increased its appeal to international investors by providing a plethora of real estate opportunities. Off-plan properties have piqued the interest of both local and international buyers, as they offer an excellent way for people to invest in Dubai property.
Other reasons to consider investing in off-plan properties include:
- LOWER PRICES & FLEXIBLE PAYMENT PLANS
The fact that these unfinished projects are provided at considerably lower pricing is one of the most evident benefits of investing in off-plan real estate for sale. Compared to constructed complexes, which are valued at a higher rate, attractive offers and workable payment plans make off-plan property investing slightly more practical and reasonable. Off-plan properties provide lower prices and more financial flexibility, which benefits both seasoned investors and first-time buyers. Developers compete mostly on rates and advantageous payment plans like paying 50% upfront and the remaining 50% after the project is complete or the “1% per month” payment plans because there are so many projects announced each month. Some of these go well above 40% post-handover, which is a significant benefit for people buying off-plan properties.
- Higher Capital Gains
Because the UAE has one of the world’s fastest growing economies, real estate investments here demonstrate the benefits in terms of return on investment (ROI). Regardless of the “locked-in” purchase price before construction, the value of a property is likely to rise once it is completed. So, even if you pay off the investment in stages according to the developer’s payment plan, you could see a rise in the market value of your property and expect significant capital gains if you decide to sell before or after completion. The popularity of the locality and neighbourhood are factors that influence property market value appreciation.
- OFF PLAN INVESTMENT OFFERS HIGH RENTAL YIELDS
One of the main factors influencing real estate investment in the UAE is rental income. Housing alternatives in Dubai will always be in demand due to the nation’s consistent inflow of expats, a trend that shows no signs of slowing down. The ROIs have held steady despite declining real estate prices around the UAE, as can be seen in our 2017 Dubai Real Estate Market Report. Therefore, whether you purchase off-plan or ready apartments in Dubai, there is a good possibility that your real estate investment will provide a respectable rental income, providing you with financial stability and a solid base in this energetic metropolis.
- BUYER PROTECTION LAWS IN THE DUBAI
While off-plan properties are at risk, the UAE’s Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD) have taken a number of measures to offer buyers additional protection against delays, cancellations or fraud. One such rule states that buyers must make off-plan payments for property purchases from DLD-approved banks. Developers only have access to funding until the project reaches a certain stage of completion. This is checked by the project consultant.
Another recently passed law requires developers to provide 20% of the construction finance as a bank guarantee plus 10% as a guarantee from the contractor.Such measures increase buyers’ confidence in the off-plan real estate market and create a safe investment climate with the certainty that the objects will be delivered normally.
- WIDE VARIETY OF OFF-PLAN PROJECTS IN DUBAI
There are many unplanned properties on the market and investors can choose from popular locations like Downtown Dubai, Business Bay, JVC and many other new communities. From the ever-popular downtown Dubai to the new communities springing up on the city’s outskirts, Dubai’s unplanned real estate market is booming. Whether it’s an unplanned apartment or villa, regardless of location, price or property type, unplanned buyers have even more options at
today. Wondering where to invest in unplanned real estate in Dubai? Take a look at some of Dubai’s most famous off-plan communities.
If you are interested in viewing unplanned properties in these regions, our Developer Sales team will be happy to help you every step of the way.
- Sell For Profit Without Waiting For Completion
Projects from well-known developers have a better chance of succeeding in the market. Buyers who did not buy early are not afraid to pay a higher price for such properties. As a result, early investors have the opportunity to profit handsomely from their investment without having to wait for the project to be completed. Early investors have the opportunity to profit without paying all of the dues, making their short-term investments worthwhile.
- Maximize ROI
Investors can be certain they will receive the best deal possible by purchasing off-plan real estate. It also gives the option to choose. Early buyers can pick a unit with the greatest views and the most convenient payment options. The property increases in value over time, yielding the highest returns on investment.
Whether you’re looking for a family home or want to increase the number of properties in your portfolio, our knowledgeable property managers are committed to supporting you at every stage of the real estate process. Start investing in Dubai real estate right away via Waynah Properties – Real Estate Agency, and we promise to provide you with the greatest services and overall experience.