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Investing in ultra luxury properties in Dubai offers unparalleled benefits, including world-class amenities, prime locations, high rental yields, and strong capital appreciation. Dubai’s status as a global business hub, tax-free environment, and vibrant lifestyle make it an attractive destination for discerning investors.
As of today, Dubai has become one of the most popular international destinations for investing in ultra luxury properties over the past twenty years. It has experienced a rapid enhancement in growth and development and, therefore, provides the right market for property investors worldwide. There are typical methods of investing in the UAE, especially in Dubai today, through off-plan sales – purchasing property before construction. Here are some critical reasons why off plan luxury properties in Dubai represent an excellent investment opportunity.
Here are some of the essential reasons why ultra luxury off-plan properties Dubai represent an excellent investment opportunity:
List of off plan properties in Dubai
Investing in off plan properties in Dubai
Guide To Buying Off Plan Property In Dubai
How do you invest in off-plan property in Dubai
Buying off plan property in Dubai process
Property Investment Business Bay
Why invest in off plan properties in Dubai?
High Capital Appreciation
Dubai’s property market has been undergoing significant growth for several years. In the last decade, public areas such as Downtown Dubai, Palm Jumeirah, and Emirates Hills have doubled or even tripled property values. This means high prices in established prime locations as land becomes scarce and development extends far away from the city centre. This is especially true because acquiring property in this form enables one to exploit the inherent growth potential in the price per unit and profit more upon handover.
Strong Retail Demand
Dubai’s growing population and increasing tourism rates rapidly increase the demand for luxurious houses and flats. It attracts well-heeled foreigners, investors, and visitors who expect the best living standards and hospitality. Today, this Emirate boasts some of the highest occupancy rates of hotels globally as people continue to demand a luxury lifestyle. Off-plan properties Dubai also expects many off-plan units to be in first-tier projects from reputable real estate developers, which target lucrative clients in both leasing and sales markets.
High Rental Yields
This is usually the case, especially for luxury units in Dubai, where the yield on rent typically ranges between 5-8%. Projects and apartments near the waterfront and in Downtown Dubai are usually charged very highly, especially if they are situated in a central area with numerous leisure opportunities. If an investor decides to buy an off-plan luxury unit for sale, they should expect their property to produce a gross annual rental income of AED 140,000 and above once let out in the market.
Limited Prime Stock
Currently, the number of prime properties within reach of end-users in Dubai is decreasing as the Emirate approaches its maximum limit in critical sectors. For instance, the available plots for development in Palm Jumeirah Dubai have been reduced drastically. New buildings of premium apartments launched today are being quickly subscribed. Off-plan is mainly the only way of buying a luxury unit in a prime location when the property stocks are still high. Pioneer investors are also expected to gain more for the following reasons.
Attractive Payment Plans
Another attractive aspect of off-plan property investments is that most have flexible payment structures. Foreign buyers are usually required to pay only 10-25% of the value of an apartment or a villa upon signing the sales and purchase agreement, while the remaining amount is to be paid after the construction of the property. Finding the money is more accessible for stage payments since construction may take 2-4 years. This makes it possible for the buyers to purchase a property with the hope of getting it when it is through with just a fraction of the cost of the property.
Easier Access to Finance
Off-plan purchases are more likely to be financed by banks than ready units because the former’s repayment period tends to be longer. The money from subsequent sales can also be used to pay mortgage dues, which benefits investors. Lower equity requirements have also been realised, meaning less money is tied down for longer. This enables business people to have cheaper capital and, in the meantime, to invest in other activities.
Strong Legal Protection
If you are considering investing in ultra-luxury properties, Dubai has prescribed rigid developer escrow account guidelines to curb situations where off-plan buyers’ money is mishandled. Part payments are made into an escrow account to ensure the money is disbursed to the developer only after completing certain construction stages. Further, the developer must provide a bank guarantee of an amount equivalent to the land plot’s value to secure an off-plan selling license. This prevents project abandonment and also secures your money in the process.
Lifestyle Perks and Amenities
Off-plan luxurious properties include some of the most advanced facilities, such as an infinity swimming pool, advanced gym, spa, café, and beautifully designed landscape gardens. Some houses even have particular entertainment areas, golf practice areas and sky lofts. Another advantage of buying off-plan is that it allows one to choose and design interiors independently. These privileges ensure that the lifestyle in the buildings is very lavish for those living there and increase the occupancy through demand from the well-to-do.
Expo 2020 Dubai
The long-awaited Expo 2020, initially scheduled for June to December 2020, is rescheduled for October 2022 due to the COVID-19 pandemic. It is expected to bring in over 25 million tourism visitors to Dubai. Many hotels around the Expo site that offer luxurious facilities and properties for rent have recorded increased occupancies. The event will be short-term but help establish Dubai as a business and tourism hub for international investors. This will spur long-term demand for luxury houses since they are regarded as status symbols.
Final Say
When it comes to investing in ultra-luxury properties, the evidence of Dubai’s phenomenal infrastructural development, favourable investment climate, and the attraction of the super-rich to buy properties, it can indeed be regarded as a safe bet in the field of prime property investment. Such a prospect has been attributed to the city’s fast growth in the last two decades, proving that such opportunities are worth cherishing. Off-plan fulfils all criteria for high returns, sweeteners, and lesser risks, which are the hallmarks of the sector. New upscale projects in Dubai are a good chance for investors willing to capitalise on luxury property appreciation or looking for rental yield. With this in mind, the best thing to do is start investing now.
Company Bio
If you want to explore the specifics of buying off-plan real estate, Falcon Premier, a Dubai-based real estate company, can assist you. Their trained real estate experts will help you find numerous off-plan properties at competitive prices.
