5 Reasons To Invest In Off-Plan Properties In Dubai

With a booming economy, stable politics, and great returns on property investment, Dubai is a hotspot for anyone wanting to invest in real estate. Investing in off-plan properties, in particular, is gaining popularity in 2024. Since they opened up properties to expats in 2002, Dubai’s real estate market has caught the eye of local and international buyers alike. In 2017, sales of off-plan properties hit a 9-year high, with over 25,000 units sold. This trend is expected to keep going strong in 2024, with more launches and announcements in the real estate sector. Here are five solid reasons to consider investing in off-plan properties in Dubai this year.

Reasons to Consider Off Plan Property Investment in Dubai

Thinking about buying off-plan property in Dubai? Here are five good reasons to consider it

1. LOWER PRICES & FLEXIBLE PAYMENT PLANS

Considering buying off-plan property in Dubai? One big advantage is the lower prices compared to already built properties. You get attractive deals and flexible payment plans, making it more affordable for both experienced investors and first-time buyers. Developers often compete on prices and offer tempting payment schemes, like paying 50% upfront and 50% upon completion or monthly payments as low as 1%. Take advantage of these benefits as many new projects are announced monthly!

2. CAPITAL GAINS

The UAE is booming, making real estate investments here promising for good returns. When you invest in off-plan property, the value is likely to go up once it’s finished, even if you got it at a lower price during construction. Paying in stages according to the developer’s plan won’t stop the property’s market value from rising. Factors like the neighborhood’s growth also contribute; if it’s becoming a great community, your property’s value will likely increase. Selling before completion can bring in profits, especially if the project gains popularity.

3. Off-Plan Investments: Get Great Rental Yields

Renting out your property is a big plus for investing in real estate in the UAE. Many people are moving to Dubai, creating a constant need for homes. Even if property prices go down, our 2017 Dubai Real Estate Market Report shows that returns on investment have stayed steady. So, whether you choose off-plan or ready properties, you can likely earn good rental income, offering financial security in this lively city.

4. BUYER PROTECTION LAWS IN THE DUBAI

While there are risks associated with off-plan properties, the Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD) in the UAE have implemented measures to protect buyers. For instance, payments for off-plan properties must be made at DLD-approved banks, and developers can only access funds after reaching a specific project completion stage, verified by a consultant. Recent laws also require developers to provide a 20% bank guarantee for construction funds and a 10% performance bond. These regulations enhance buyer confidence in the off-plan property market, ensuring a secure investment environment with the expectation that properties will be delivered under normal circumstances.

5. WIDE VARIETY OF OFF-PLAN PROJECTS IN DUBAI

Explore a diverse range of off-plan projects in Dubai, featuring luxurious options like Sobha One, Sobha Verde, Sobha Sea Heaven, and much more. Discover exceptional investment opportunities in these prestigious developments.

Things to Consider Before Investing in Off-Plan Properties in Dubai:

Thinking about investing in off-plan property in Dubai? Here are some key things to consider:

Prepare for Delays:

It’s common to face delays in off-plan projects, impacting your moving plans. Have a backup plan in case of delays.

Manage Expectations:

Decision-making relies on brochures and plans. Be aware that the final result might differ. Research your developer and check their previous projects for a better idea.

Market Fluctuations:

While there are potential gains in property investment, market trends can change. Stay informed about real estate trends and make a well-thought-out decision before investing in off-plan properties in Dubai.

TO SUM UP INVESTING IN OFF PLAN REAL ESTATE

Searching for properties in Dubai? When it comes to buying off-plan, there are both advantages and disadvantages. Explore the pros and cons to make a wise investment in the Dubai real estate market.

Pros of Buying off Plan Property in Dubai: