Things You Need to Know before Investing in an Off-Plan Property in Dubai
Purchasing properties off-plan, that is unconstructed property purchased directly from a developer – or in some cases a first owner, is quite common among investors due to the many benefits it entails. Whilst there are many advantages to buying off-plan properties in Dubai, there are quite a few things you need to understand and be mindful of when taking this step. Dubai Properties has gathered a comprehensive and all-inclusive guide for off-plan property investment in Dubai, including why you may opt for an off-plan unit, and some key points to exercise caution with.
Why Invest in an Off-Plan Property?
- To Maximise Return on Investment
Buying a property off-plan means that investors are going to get the lowest and earliest possible price for a particular unit. It also means that the investor has the freedom of choice of the best units in the development, which significantly increases chances of gaining the maximum return on investment possible.
- Sell before Completion at a Profit
With popular projects, and considering that the market has performed well, investors can sell their units even before the development has been completed at a considerable profit – making their short-term investment worthwhile.
- Lower Down Payments
Whereas down payments for completed properties are 25 percent of the property value for expats (and 20 percent for Emiratis), buying an off-plan property will save investors this hefty amount – as down payments for off-plan properties are only 10%.
Key Considerations When Buying Off-Plan Properties in Dubai
If you do decide that investing in an off-plan property is right for you, there are a few considerations you need to keep in mind to make the process as smooth as possible.