The real estate sector happens to be one of the driving forces of the Dubai Economy. It is one of the primary factors that has aided Dubai to become a success story. Smart investors can find plenty of opportunities in this sector to grow their capital and add more properties to their portfolios. This is why investors from all over the world are flocking to Dubai.
The primary market, in particular, is gaining momentum in recent times. Although the sales volume in the secondary market was high in the last quarter, there has been a noted increase in transactions in the primary market as well. This clearly says that the interest of buyers is shifting towards off-plan properties.
With that said, let’s take a look at some of the reasons why you should consider an off-plan property for investment in Dubai:
One of the main reasons why many investors prefer off-plan properties is because it allows them to earn large profits. Making an off-plan investment allows you to purchase a unit in a prominent property with significant profit potential. Waterfront apartments or villas, for example, are in high demand in the emirate. However, few people can afford them because of their high prices. However, you can buy them at a modest price in an under-development project and profit handsomely when it is completed.
Aside from that, few people are aware that off-plan properties can be sold even before they are fully completed. Offers begin to stream in earlier if the project is located in a desirable location. These offers can be taken advantage of by investors who want a large return on their investment. It should be noted, however, that developers may impose limitations on how long the property can be sold after it is completed. So, it’s advisable to gather all of these details before investing.
Less Capital Required
One of the key advantages of investing in off-plan properties is that they do not require as much capital as ready-to-move-in properties. Developers offer these properties at far lower prices than market value because they are still in the development process.
The disadvantage is that it may take years for the project to be completed. In addition, there may be unavoidable delays. For example, because to COVID-19, construction work on many projects was paused, causing projects to be delayed. But, thanks to Dubai authority’s timely actions, they weren’t massive delays.
A point you need to know here is that even if a residential project gets shelved, investors do not lose their money, if they had deposited the initial amount in the escrow account. It so happens that when an ongoing project gets cancelled, DLD takes the matters in its own hands. Upon verifying its cancelation, it makes a committee that is responsible for giving investors their money back via the project’s escrow account.
Easy Payment Plans
Another characteristic that makes off-plan properties a preferable option is the flexible payment schedule. To reserve a unit, investors just need to put down a deposit. The remaining balance is paid in instalments over time.
It’s also worth noting that payment options are also available for ready-to-move-in properties. They are, nevertheless, less convenient than off-plan properties. Some developers also offer 10/90 payment options for certain houses. This means that the buyer only needs to pay 10% of the property price upfront, with the remainder paid in monthly instalments.
Investors looking for primary market investing prospects in Dubai have a plethora of options. The latest projects are being developed by top-tier, internationally recognised developers in every section of the city. As a result, prominent communities, such as Dubai Marina now have a plethora of projects where such an opportunity can be found. Scope Investment’s Stella Maris Tower, for example, is an excellent investment opportunity. It is the last waterfront development in the area, and predicted to become one of the top residential projects in the next years.
Apart from Dubai Marina, many other areas in the emirate have numerous developments underway, creating a vast range of opportunities for new and pro investors.
The Way Forward
To summaries, an off-plan market investment is the best choice, provided you have done your thorough research and selected the residential project with maximum potential. If you’re new to the market, it’s a good idea to seek the services of a professional real estate agent who can walk you through the entire process and help you make an informed decision.