Purchasing off plan properties in Dubai reached a notable high in 2017, what with over 25,000 off plan deals being made. Given their prevalence, we will delve into the reasons why off plan investments in Dubai is a feasible notion.
One of the primary reasons why off plan deals are sought after is because of the reasonable prices and flexible financing alternates for customers. Since these properties are in the process of completion and are at various stages of construction, these projects are available at considerably lower prices.
Additionally, payment plans are viable and offer investors more ease than standard properties. That makes off plan properties in Dubai more affordable and a pragmatic proposition as well. This attracts veteran buyers as well as novices who don’t have experience in real estate.
The United Arab Emirates is an emerging economy, which makes real estate ventures an enticing option because it offers excellent return on investment. Off plan experts believe that the value of these properties will augment once they are complete. Therefore, those who are paying installments now could profit from a significant rise in their real estate’s valuation upon completion. If investors plan to sell their off plan properties in Dubai while it is still in development, they would still stand to make a handsome return.
In addition to being in line for an abundant yield if they sell their properties, investors can also accumulate high rents if they choose to enter a tenancy agreement. Given the number of expats and foreigners in the city, there is ample demand for rental properties. Despite diminishing property prices in UAE, return on investment is a virtual certainty.
Although there are risks attached to off plan Dubai real estate, governing bodies such as RERA (Real Estate Regulatory Authority) and Dubai Land Department (DLD) have taken measures to safeguard buyers against potential delays, unforeseen revocations and fraudulent activity as well.
For instance, buyers must make payments for off plan properties in Dubai at DLD approved financial institutions only. That means there is a legitimate validation process and buyers are protected in case something goes awry.
Finally, there are plenty of viable options for investors to choose from. Whether it is downtown Dubai or developments in the outskirts of the city, the off plan market has definitely taken off and the market has a positive outlook as well.