The Dubai property market continues to attract foreign investors and HNWIs, as it breaks one record after another.
However, due to the rising inflation and interest rate, a halt in its growth is expected. Still, the future for Dubai real estate looks bright as it has a lot of potential and opportunities to earn ROI for investors. One such opportunity is buying off-plan properties in Dubai.
These are the properties that are still in the development phase. In the last few years, the trend of buying off-plan properties in Dubai has caught pace, which has resulted in their significant demand.
While you’ll have to wait for the project to be ready before you can move into it, these properties are still considered highly beneficial for both investors and end-users.
Before we delve deeper and know how to get better ROI from off-plan properties, let’s first take a look at their benefits.
Benefits of Buying Off-plan Property in Dubai
Low Price, High Returns
One of the biggest benefits of investing in the primary market (off-plan properties) is that you can buy them at low rates. Since they are in the development phase, the prices, understandably, are on the lower side compared to ready properties.
This way, they provide an easy opportunity for investors to enter the Dubai property market. End-users can also capitalise on this opportunity to buy their dream home.
When it comes to returns, it will take some time, but you will eventually be able to earn significant ROI.
Convenient Payment Plans
Most developers offer convenient and flexible payment plans to attract buyers. The upfront payment for some projects is as low as 5% of the total cost. The rest of the payment is to be paid in monthly instalments that span over multiple years, decided at the discretion of both the buyer and developer.
Buy Directly from the Developer
One can buy off-plan property in Dubai directly from the developer without having to involve a third party. This means you won’t have to pay a commission to any real estate agent.
Abundant Options Available
There’s no dearth of new property developments in the UAE. Several globally-renowned real estate development firms, such as Emaar Properties, DAMAC, Nakheel, Meraas, etc., have new projects lined up in the country, and Dubai being the prime real estate destination in the region houses most of these projects.
This implies that buyers and investors are spoilt for choices when it comes to selecting an off-plan property in Dubai.
A Risk-free Endeavour
Many believe that buying off-plan property in Dubai can be risky. While the fact that buying any property, be it in the primary or secondary market, comes with its share of risks, Dubai safeguards the rights of buyers with its strong policies.
Developers have to adhere to strict policies laid out by authorities to complete the project. Even if the project gets cancelled, you can still get your money back. You can find more about how to deal with the cancellation of an off-plan project here.
How to Get Better ROI from Off-plan Properties in Dubai?
Follow these tips to earn a high ROI from off-plan properties in Dubai:
Choose the Property Wisely
First things first, you need to be very diligent when it comes to selecting the off-plan property. You can choose from off-plan apartments, townhouses, or villas in Dubai.
This decision depends on two main factors; your budget and purpose. Villas are mostly expensive but offer great ROI. So, if your budget permits, this is the option you should settle for. As for the purpose, it boils down to what you’re buying the property for, i.e. to live in it or sell it later. Either way, you need to be very tactful when financing the off-plan property since your ROI depends majorly on it.
Check the Legitimacy of the Project
This is something you shouldn’t neglect. Although Dubai is a fairly safe place to invest in real estate, scams and fraud happen everywhere in the world. So, you need to be very careful.
Make sure to check the legitimacy of the project before you invest in it. As per DLD Dubai, developers and property portals are only allowed to advertise registered projects. Still, you are recommended to do your due diligence and verify it through the RERA portal. Also, do not deposit the down payment or any other amount pertaining to the property in any account other than the Escrow account.
Do Your Research
Doing your research before buying any kind of property is very crucial. However, it becomes even more critical in the case of off-plan property since it’s not yet developed. So, put your thinking cap on and know as much about the location and developer’s reputation as you can.
Ideally, the property should be part of a development that’s easily accessible. A metro station nearby will add to its value. Furthermore, it should be closer to other lifestyle facilities and amenities. If the area is under-development, make sure you know about the up-and-coming facilities planned there. They play a vital role in earning better ROI from off-plan properties.
As for the developer’s reputation, do some research on their previous projects. This will help you know if they were completed on time or not. You can then utilise this information to make an informed decision.
While you’re doing this, you should also know about the complete legal process of buying off-plan property in Dubai.
Scrutinise the Property’s Liveability, Saleability, and Rentability
If you want to earn better ROI from off-plan properties in Dubai, you should never buy it before scrutinising its liveability. When a property is liveable, you will be able to sell or rent it at a higher price. So, it won’t be wrong to state that a property’s saleability and rentability depend majorly on its liveability.
Wait for the Right Time to Sell
You will always find many takers for your property in Dubai. However, earning better ROI from off-plan properties requires owners to be very diligent in their approach. You need to wait for the right time to sell it
You need to conduct market analysis or rely on the expertise of a real estate expert to know when is the right time to sell.
We hope that this detailed guide will help you make an informed decision with respect to your off-plan property and earn maximum ROI from it.