Because of plenty of advantages associated with off-plan or unconstructed property, the trend of investing in off-plan properties has been quite common amongst the investors. In Dubai, the advantages are many. The reasons for investing in off-plan Dubai properties are as follows –
Thinking of Maximizing the Return on Investment (RoI), Invest here
Well, are you thinking to maximize the return on investment? Well, off-plan properties are the best option for this. The reason being the buyer is going to get the earliest and the lowest price for the particular property. The price in the near future for it is always going to rise. In addition to this, the investor also has the option to exercise his/her choice on developing the property as per the requirement and sell it as per the investment. This approach significantly increases the chances of getting maximum RoI.
- Selling when Required
Since you as an investor is buying it as an unconstructed property therefore, you have the liberty to sell it half completed taking into consideration the market demand and situation. According to the professionals associated with the real estate industry, this is one of the commonest ways of investments as it is a short term yet profit-making investment considering the increasing demand and price of Dubai properties.
- A Much-Lowered Down Payments
It is obvious that the down payments and EMIs of the completed projects will be higher than the unconstructed or unfinished properties. Hence, such projects stand as lucrative for the investors as one can save a hefty amount. Apart from this, when one sells the property, the return they get is quite high.
Potential Risks Associated with Buying Off-plan Dubai Properties
Every coin has two faces. If buying off-plan Dubai properties has advantages, there are potential risks associated as well—
- Delay in Development or Completion Time
Yes, not always everything will go according to your wish. There can be cases when the development work will seize to complete or progress. There can be different reasons that will halt the developmental work. This is because of this that the experts recommend having a background check of the project developer. Apart from this, ascertaining the sale agreement containing clauses related to compensation in cases of delays is always a must before investing in off-plan Dubai properties.
- Market is Never the Same
Not always the market is going to stay stable. There has to be up and down which would directly affect any type of investment. In such cases, if the price of the real estate industry dips, then the off-plan property purchased would stand worthless. This can be true with any type of property. Therefore, investment needs to be done keeping in mind the market risk.
When to sell off the off-plan Property for Gain?
When it comes to the real estate industry of Dubai, numerous measures have been taken in terms of ensuring that the market of Dubai properties remains stable. These measures have a direct impact on both the sellers and buyers.
For example, in the case of Emaar Properties, one of the largest developers in Dubai requires approximately 40% of the amount of the off-plan property to be paid by the owner before selling. The percentage amount varies with developers and hence, needs to be checked accordingly.
If you are thinking of investing in off-plan property, you need to know the different considerations to ensure the process ends smoothly.