Off plan Dubai – should you buy a property ?!?
When purchasing a property as an investment, it is important to look for something that can be easily achieved if you make an unscheduled purchase. Unscheduled development is currently experiencing a significant increase in popularity in Dubai and around the globe. The popularity of this property has been increased by the excellent discounts negotiated during pre-construction and during the construction period.
If you are buying an off plan Dubai property, you can get a good deal if you are able to make payments at this stage. One of the most important advantages of the unscheduled purchase of a property is the possibility of securing the purchase below market value. Compared to prefabricated buy-to-let properties, the planned purchase process has a slightly different buying process, but once an investor has been familiarized with the general process and added benefits, they will find that planned properties are an incredibly viable investment opportunity.
In Dubai (and UAE) it’s pretty straightforward since you don’t want to do anything yourself – use a real estate agent and/or talk directly with the developer. In this way everything will be taken care of – you just need to make the payment and sign a few documents like property registration, ownership, etc.
To avoid any legal issues it’s always better to work with an agent like agents from Estati.ae – we are here to help you!
What else should you know about buying off plan property
Buying an off-plan means agreeing to buy a house while it is still under construction, and the buyer is hoping for a bargain while the developer reduces the risk and sells before the bricks are laid and construction begins.
Buy-to-let can be an attractive option for buyers looking for a new, stress-free home, but not necessarily for those with limited financial resources or financial security.
This is quite common in newly built houses and neighbourhoods where a developer has approved a plan to build a new housing estate on vacant land. Instead of buying an existing house, the new builder enters into a contract with a guarantee to purchase the unit based on architectural drawings and the developer’s blueprints. Being a homebuyer simply means that the person who is the buyer has bought a house or residence before it is built.
It is customary to make agreed down payment (e.g. 5%, 10%, or 10%) and pay off the rest as soon as the house is completed and handed over, giving you plenty of time to save the rest of your cash. This is a particularly popular option for those interested in buying a house or apartment before the building has even started, before planning permission has been granted or before building plans have been drawn up.
Real estate developers such as Emaar Properties or Damac Properties give you a high degree of flexibility when it comes to choosing the right type of property for you, such as a house, apartment, or even a small apartment.
Off plan Dubai
Depending on the developer, you can even pay less than 20% of the original deposit for the property. Sometimes down payment might be 5% or less! Deposits can be high, but are often as low as 10% and can be higher in some cases, such as an apartment or even a house.
You can find a lot of selected off plan properties on our Explore properties page – have a look and contact us if you need any help!
Suppose you buy a property for USD 400,000, put down a 10 per cent deposit of USD 40,000 and the property is still being built a year later. Rising house prices in the region mean the average price of a home when it is ready will be around USD 540,000. You might be surprised to find that on average off-plan properties in Dubai are around 30% cheaper compared to the secondary market (when buying from another owner).
As with any property investment, there are potential pitfalls to consider and it is important to weigh up potential costs and the possibility that the property could fall in value by the time it is fully built. You can buy a property after it has been built, but existing homeowners may find buying an apartment or townhouse from an off-plan developer a more attractive option to generate capital gains and save money on stamp duty.
.New highways for universities have already been built, and if there are plans in the next few years, unplanned developments may also be seen as attractive. Also, don’t forget conferences and events in Dubai such as Expo 2021!
Should you buy an off plan property in Dubai?
The short answer is – YES! If you have enough capital – go for an apartment in a highly visited area, such as South Beach Holiday Homes by Emaar – this is where Emaar takes care of managing your property and list on Airbnb, Booking.com and other websites to make your investment worthy! Also, Dubai is tax free – what you make is all yours!
Otherwise, if you’re a low-risk investor, go for residential areas like Majestic Vistas at Dubai Hills – this is where you will get stable ROI since rental contracts are normally 12-months.
Properties that are sold before they are built are referred to as “off-plan” properties or properties that are sold after completion. In a fast-growing real estate, commercial and housing market, buying outside the plan allows investors and homebuyers to buy real estate without having to wait long before deciding on a property. For many of us, what is simply called an off-plan investment in real estate is basically a clever way to make millions.
To do this, those who will build the building need the money of the financiers, but forget to get it off the ground. The advantage for the backers is that they can later buy the prefabrication at a lower price and sell it at the full market value of the above-mentioned land. What benefits everyone is the fact that the pre-sale of the units enables lenders to trust the feasibility of a project as a cash-earner by selling many units that cannot be seen.
South Beach holiday Homes
South Beach Holiday Homes by Emaar – one of the very first Holiday Homes investment opportunities with HIGH ROI!
