While there’s no doubt that Dubai is unbeatable when it comes to property investment, the emirate continues to amaze the investors with one award-winning building after another. With such a rapid progression, the popularity of off-plan properties is escalating too. They refer to the properties which are sold before the completion directly by the developers to investors and end-users
And there are various authentic explanations for this upgrade. According to the current stats, investors and potential buyers prefer off-plan properties because they’re slightly more reliable and offer versatile payment choices than ready-to-move-in properties.
Recent Statistics about Off-plan Properties in Dubai
According to the current stats, Dubai’s real estate market experienced around 5k sales transactions at AED 16.69 billion in January 2022. The record makes it the best January in the history of Dubai. While the finished projects accounted for 53% of all transactions, off-plan properties accounted for 47%. So, the success rate of ongoing projects in Dubai is no longer a secret.
Why are Off-plan Properties Getting Popular in Dubai?
Everyone knows that the real estate sector is the backbone of retaining the growing economy in Dubai. The city excels at attracting many foreign investors and expats besides domestic buyers. With the continuous progressions in Dubai, the attention of investors isn’t only diverted to completed developments. Instead, it’s wandering around the off-plan properties too. Of course, it’s a rarity for an infrastructure to sell out before its completion, but it’s happening in reality.
Let’s look at the bigger picture and evaluate why investors are finding off-plan properties a lucrative investment opportunity.
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Flexible Payment Plans with Reduced Prices
One of the most fruitful perks of investing in off-plan properties is partiality. And so, they tend to get sold at lower prices. It implies that such feasible payments make the offer more attractive than constructed developments, which get valued at higher rates. The seasoned investors and novice buyers benefit from reduced prices and greater financial flexibility such properties offer.
With the continuous announcement of new infrastructures in Dubai, developers primarily agree upon lucrative payment options. For instance, they’ll ask you to provide 50% of the payment in advance, and you can pay the rest afterwards so that you don’t have to arrange a hefty amount all at once.
This allows people to buy property in otherwise unaffordable neighbourhoods. For example, not everyone can afford properties in Palm Jumeirah, but an off-plan property here can be purchased without breaking the bank.
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Valuable Capital Gains
Since the UAE occupies the stage with the fastest growing economies in the world, Dubai is quite promising regarding return on investment (ROI). While the value of property probably increases once it’s complete, regardless of the former settled rates. So, even if you’re paying off the cost in instalments per the developer’s payment plan, you could witness a rise in the actual rates after the completion. Factors like the locality and neighbourhood’s popularity play a significant role in such cases.
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Buyer’s Protection Laws
Unlike fully-constructed properties, the Dubai property market has set plenty of rules to protect off-plan property buyers. While the off-plan properties appear daunting, Dubai Land Department (DLD) and Real Estate Regulatory Authority (RERA) avoid cancellations, delays and fraud.
For instance, developers can only access the booked funds until the project reaches a potential completion stage, which a consultant will only verify. Another recent law makes it an obligation for developers to guarantee 20% of building cost. In this way, buyers get a sense of self-assurance and invest in off-plan properties with utmost confidence.
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The Tax-free Investment
The majority of investors opt for Dubai for a reason. Besides the fastest growing economy, the ability to be a tax-free status entices many investors. As mentioned, there are no income or capital gains, making the off-plan properties an ideal way to invest and earn. People with a versatile investing portfolio will acknowledge the prevailing benefit that outpaces the plans to invest in any other foreign city.
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Extensive Range of Off-plan Properties
From the ever-popular, The Palm Jumeirah to the new neighbourhoods popping up at every turn of the city, the off-plan properties here are constantly bustling. Whether it s a villa or apartment, there’s something to suit every taste and budget. Other great communities for off-plan properties include Downtown Dubai, Jebel Ali Village, and Meraas Nad Al Sheba Gardens.
Besides that, Off-plan properties in Dubai Marina also attract buyers and investors.
Wrapping up!
While there are dual sides to every coin, the case of off-plan properties is no different. The prime purpose of all stating all the potential reasons for investing in incomplete projects is to enlighten you with all the benefits the properties offer. And so, the demand is expected to rise even more in the following years, so it would be wise to make up your mind now.
Check out the latest listings of off-plan properties on Zoom Property, the leading property portal in the UAE.
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