Off Plan Properties – The new home owner’s dream in Dubai?

 

UAE is trending to be a global destination and secure home base for the world, especially since changes to the citizenship rules and its recent updates to the Golden Visa Regulation. With the ever-evolving population, catering to the custom needs of a home buyer while ensuring its affordability has always been a challenge with the ready-to-move-in apartments and villas. Off-plan Properties basically allow this flexibility. It construes buying of an unconstructed property directly from a developer by paying a nominal down payment, usually 10 – 20% and signing a sales purchase agreement, the rest of which is paid according to the payment plan agreed upon.

According to recent statistics, there has been a paradigm shift among homeowners who now prefer Off plan properties to ready-to-move-in ones due to various specific reasons. 

Market fluctuations and Capital gain

The price of the property is usually locked in as the day of the signing of the Sales purchase agreement, hence, protecting the investor from hikes in property values due to market fluctuations. In a growing market, the property’s value consistently increases throughout the construction, thereby, providing valuable capital gains. Therefore, buying an off-plan property can be a good investment strategy as selling the property at a time when the property price increases can help make quick profits.

Offers buyers time to plan their finances

One of the major concerns for aspiring homeowners is the inability to procure the bulk amount required to buy a property upfront and this also interferes and hampers with the financial planning of the individual. Since Off plan properties have the option of paying the complete amount post-completion of the project, it gives enough time for the investor to prepare themselves for the upcoming expenditure and plan their finances accordingly. Additionally, present-age developers are also exploring options to provide multiple flexible payment methods to the homeowners making this the most viable property option, especially for first-time homeowners.

Better condition and home personalization

Ready-to-move-in apartments/homes have amenities that are usually meant to cater to everyone in general. Since the investor is involved with the project since before its inception, off-plan property purchase provides the homeowner the flexibility to tailor the property according to their personal preferences and needs. Unlike ready-to-move-in apartments, off-plan properties also ensure that the homes are in better condition as they are newly constructed. This makes the homes more energy efficient and also significantly lowers their maintenance costs.

Discounts, Tax benefits and Rental Income

Off-plan properties do not just have a lower process when compared to fully constructed apartments/homes but builders also usually provide the properties at a discounted price to attract more buyers. Hence, the investor can maximize their valuable capital gains at a later time. Off-plan properties also entitle the investor to a myriad of tax benefits and also to discount on stamp duty levied by the government. Since the properties are newly constructed, the home segment also attracts high rental income making residential properties more viable for the investor.

The Off-Plan property market is buzzing with activity more now than ever, be it in the popular city centre or in the new communities that are bubbling in the outskirts, be it Off plan apartments, villas or homes, aspiring homeowners have an array of options to choose from. Hence, it is safe to project that the off-plan properties are currently the upcoming dream of an investor as well as an aspiring homeowner.

just have a lower process when compared to fully constructed
apartments/homes but builders also usually provide the properties at a discounted price to attract
more buyers. Hence, the investor can maximize their valuable capital gains at a later time. Off-plan
properties also entitle the investor to a myriad of tax benefits and also to discount on stamp duty
levied by the government. Since the properties are newly constructed, the home segment also attracts
high rental income making residential properties more viable for the investor.
The Off-Plan property market is buzzing with activity more now than ever, be it in the popular city
centre or in the new communities that are bubbling in the outskirts, be it Off plan apartments, villas or
homes, aspiring homeowners have an array of options to choose from. Hence, it is safe to project that
the off-plan properties are currently the upcoming dream of an investor as well as an aspiring
homeowner.

What To Consider Before Investing in Dubai Real Estates – Top Real Estate Company In Dubai

best real estate agency in dubai

What You Must Consider Before Investing in Dubai Real Estate

Want to invest in Dubai Real Estate, but feeling a bit apprehensive? You are right to proceed with caution, especially if you are a novice in this field. Investors who do not have real estate experience might get carried away and take unnecessary risks. However, when it comes to a stable and booming market such as real estate in Dubai, you have little to worry about. As long as you consider the following key factors, making the right decision will become a piece of cake. These five steps will not only help you choose the right property, but they will also set you up on the path to success as a real estate investor in Dubai.

  • Your objective behind investing in Dubai Real Estate

Before you start looking at potential properties, make sure you have a clear objective in mind. Most investors focus on the return on investment, be it through long-term capital gain or through an annual yield. The Dubai real estate market is versatile and flexible. It can accommodate the needs and objectives of both seasoned and novice investors. All you have to do is analyze what you want and decide your next steps accordingly. Do you want to buy a vacation home? Or, do you want to buy a luxury villa that you can rent out to make a sustainable income? Once your objective is clear, you will know where and how to invest.

  • The location can make all the difference

When it comes to real estate, location is everything! It is even more important to those who are looking for an investment opportunity in Dubai Real Estate. Of course, a great location means a hefty price tag, but it also means high property value, which makes it a great asset for any investor. The better the location, the higher the return on investment. However, simply choosing a popular location might not fetch you the desired outcome. The location you have chosen must also support your overall objective. What you intend to do with the property should tell you where it should be situated.

  • A clear understanding of market trends is necessary

Researching and analyzing market trends and stats is perhaps one of the most important steps that you must take care of when you are planning to dip your toes into the pool that is Dubai Real Estate. You need to educate yourself by reading up on investment patterns, current trends and future predictions. When you are confused about which location will fit your objective the most, this particular research will come in handy. You will also get to know about investment terms and other aspects that you may not have known before, and this knowledge will prove to be invaluable as you go forward.

  • The difference between expenditure and investment

Once you have taken care of the factors mentioned above, it is time to get your finances in order. At first, you need to look at your spending and savings patterns, and then do some math! Figuring out exactly how much you can afford to invest in a particular property can seem daunting. However, it is easy when you know a simple formula.

For example, if you are planning to invest and then put the property on rent, you will need to subtract the cost of taxes, maintenance, repairs, and insurance from the rent you are expecting. The sum you will be left with will be your profit or cash flow.

On the other hand, if you want to use the property as your home or holiday home, you will have to subtract the price of the property and your monthly expenses from your yearly income to figure out your cash flow.

The exact figure will certainly depend on your objective as well as the state of the market. However, internationally renowned markets such as Dubai real estate tends to produce a higher ROI than others, generally in the range of 6 – 8% per annum.

  • Guidance from the best real estate agent

Hiring a competent real estate agent is the final step in the preparation stage. No matter how well you have studied the market, it cannot compare to the industry experience of a professional. You need the assistance of someone who is familiar with the trends and developments in Dubai Real Estate. Only a reliable real estate agent can help you make the most of your investment.

With these factors in mind, you should be ready to take the plunge. Take advantage of the post-pandemic boom, and make the most of your money.

Get the best investment advisory services in Dubai from our experts at RiseUp Holding.

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