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If you are interested in real estate Dubai and want to make maximum profits by investing in that market, consider investing in off-plan properties. If you follow the right rules of investment and work with a trusted realtor, you will be earning great returns on your off-plan investments.
Off plan property investment involves purchasing a property before its completion. Experts also refer to this investment type as pre-construction buying. Property investors often make bigger profits by investing in off-plan constructions compared to what they would have made by purchasing completed properties.
Indeed, this mode of investment allows investors to build their portfolios cost-effectively. However, to ensure that the investment turns out to be a profitable one, one must practice due diligence. The section below will help you understand why investing in off plan properties in Dubai is a good idea. You will also know how to make this investment a fruitful one.
Why You Must Invest in Off-Plan Properties?
If you buy an off-plan property, you will enjoy the following advantages:
- You will the property for a more affordable price compared to a completed property in the same area
- There will be flexible and attractive payment options
- The mandatory initial investment will be much lower
- You will most likely see the property’s price increase significantly as it would near completion
Read on to know more about the reasons why one must look to buy off plan properties in Dubai.
Flexibility in Payments and Cost-Effectiveness: The biggest benefit of buying off-plan properties is that they are remarkably more affordable than the completed ones. Additionally, they allow buyers to pay following flexible payment plans. This combination of flexibility and affordability is responsible for making off-plan buying alluring to both new and seasoned investors.
Dubai has multiple new constructions going on. Developers in this sprawling Middle Eastern city announce fresh projects almost every other day. With so many ongoing projects, Dubai’s real estate market has become extremely competitive.
That’s good news for investors as developers are forced to come up with attractive schemes like paying just 50% as advance and the remaining amount once the property is completed. Some have extended plans that require buyers to pay just 1% every month. Others allow investors to pay as much as 40% of the total property price post-handover.
You will never be greeted with such flexibility when buying completed properties.
Chances of Getting High Returns: The UAE’s economy is expanding rapidly. This is good news for every investor as it increases the chances of high returns.
The value of an off-plan property usually increases notably when it is completed. This appreciation is even higher for properties in UAE’s rapidly expanding real estate market. So, it is common for people buying off-plan properties in Dubai to make big profits from their investments.
Great Rental Returns: The UAE (particularly Dubai) sees thousands of expatriates coming to the country every year. It has increased the demand for rental properties.
Your chances of attracting renters will be higher as off-plan properties will most likely have all the modern amenities one can wish for. The property will also be appealing to potential renters due to its newness.
Strict Laws: The country’s law requires investors to make all the payments for their off-plan investments at DLD (Dubai Land Department) approved banks. Developers get access to the funds only when they reach particular construction milestones.
How to Invest in Dubai’s Off-Plan Properties
Here are the steps you must follow to invest in Dubai’s off-plan properties:
Step 1: Discuss and Decide What You Want
Discuss with experts and decide what exactly you want. You must know your budget, ROI expectations, necessary amenities, developer preferences, desired payment plans, community preferences, desired property size, related expenses, and capital gain opportunities before investing.
Step 2: Hire an Experienced and Trusted Realtor
If you want your off-plan investment to be a profitable one, you must hire a reputable realtor to do the searching and shortlisting (as per your requirements) job for you. The realtor will also ensure that the contract terms are perfectly written, and you don’t face any trouble during the handover process.
Step 3: Finalising the Right Property
The realtor you are working with will help you pick an off-plan property that matches your budget, preferences, and requirements perfectly. The realtor will make choosing the right property easier for you by informing you about available payment plans and showing your floor plans of shortlisted properties.
You will also get to visit all the shortlisted off-plan constructions and find out which one meets your needs aptly. Top developers in the country will be able to show you mock properties that will give you a clearer idea about the layouts, sizes, and amenities of the off-plan properties.
Step 4: Reservation of the Selected Property
Now that you know which off-plan property you want to purchase, you must visit the sales office of the developer and pick the unit you want to book. Reservation of the selected unit is a must to ensure that you get the property’s possession upon its completion.
For most off-plan properties, you will need to pay 5 to 10% of the property price as an initial deposit. Additionally, you will also need to fill out a booking form and sign the SPA or Sales Purchase Agreement.
Step 5: Pay the First Instalment
Once the reservation is done by filling out the booking form, you will have to pay your first instalment. Other than that, you will have to pay a registration fee of 4% and an additional 1000 Dirhams as oqood fee. You must make all these payments within 30 days of booking the property.
Step 6: Pay Your Instalments as Decided
You must keep paying your instalments. Every off-plan purchase requires investors to finish paying a certain amount before the property’s completion date.
Step 7: Property Handover
The developer is obligated to finish the construction of the property and hand it over to the investor within a specific date. If you are buying the off-plan property through a trusted realtor, you can expect to get possession on or before the promised date.
Dubai Off Plan Properties & Projects- Falcon Premier Real Estate Company in UAE
Final Words
Real estate Dubai offers immense scope to investors. You can start planning off-plan investments in the city to make the most of that scope.
Company Bio:
Falcon Premier Real Estate is the biggest name in the real estate industry of Dubai. The company is known for being represented by the most skilled, knowledgeable, and experienced real estate agents in the country.
