Dubai real estate sector benefits from a robust economy, strong legal framework, and modern infrastructure. These factors make Dubai an attractive property investment market.
The Emirate of Dubai offers a range of profitable opportunities, drawing both local and international investors and buyers. While completed property units are in high demand, off-plan properties have also gained immense popularity due to their potential benefits and the range of basic amenities and infrastructure promised by developers.
Investing in off-plan properties in Dubai has multiple advantages that make it a compelling option for those looking to enter the Dubai property market.
So, if you are unsure why buy off plan property in Dubai, here are the top benefits of buying off plan property in Dubai.
Top 7 Benefits of Buying Off Plan Property in Dubai
Off plan properties are incomplete properties—they are in the development phase. Buyers can invest in off plan properties in Dubai and enjoy the following benefits.
1. Low Cost with Multiple Payment Options
One of the biggest benefits of buying off plan property in Dubai is its unbelievably lower prices than ready-to-use properties. What’s more, many Dubai real estate developers provide easy installment options, making things more convenient for buyers.
You can start by making a down payment and then follow the installment schedule over the coming months. Another reason why off plan property prices in Dubai are lower is because of immense competition. Competition forces buyers to offer competitive rates that ultimately benefit buyers and investors.
2. Move into a Brand New Property
Buying an off-plan property brings a sense of excitement and doubled happiness when you want to use it for personal residence. These properties offer freshness, featuring the latest designs, technology, lifestyle amenities, and updated features.
Additionally, you have the flexibility to choose your preferred floor number or even a corner unit, allowing you to express your preferences directly to the builder before construction begins.
Remember, a brand-new property generally yields more rental income than the old units. Also, the maintenance cost of new units is low as compared to old residential units.
3. Maximum Return on Investment
It is not rocket science that off-plan properties yield higher ROI. Completed or ready-to-use properties get higher rates than ongoing projects in Dubai.
You can buy an off-plan property at a low price and sell it at a much higher price when it is ready to use. You can also earn rental income as well. In any case, your property value only appreciates over time.
If you’re looking to invest in off-plan property in Dubai with limited capital, consider booking early when projects are announced. You will most likely get the best prices.
The initial stages of construction often offer the lowest prices, and you can select units with desirable views. These properties tend to appreciate over time, offering maximum ROI depending on when you sell.
The location and popularity of the neighborhood significantly impact property values. Therefore, it is important to consider these factors for maximum returns on your investment in off-plan properties in Dubai.
4. Flexibility in Payment Plans
One of the biggest benefits of buying an off plan property in Dubai is the flexibility it offers in down payments. Such flexibility ensures that home buyers can find options that align with their budget.
What’s more, in Dubai, various developers provide structured payment plans for off-plan properties, which allows buyers to pay in smaller installments rather than the entire cost upfront.
For instance, many off-plan projects in Dubai require a booking fee of only 5% to 10%, and in certain cases, the Dubai Land Department (DLD) fee is entirely waived.
Typically, the buyer pays 50% during the under-construction phase and the remaining 50% after completion (this percentage can vary).
Such payment plans not only make the initial financial commitment more manageable but also offer financial flexibility and convenience to buyers. This is what makes off-plan properties in Dubai an attractive investment option for those with varying budgetary needs.
5. Lucrative Rental Income
Villas and apartments for rent in Dubai are consistently in high demand due to the city’s large expatriate population. This demand results in lucrative rental income opportunities for investors in off plan properties.
When your off-plan property is completed and ready for use, you can capitalize on this demand by renting it out.
However, it’s important to note that rental values can vary significantly based on factors such as the property’s location, type (villa or apartment), available amenities, and other market conditions.
Investing in an off plan property in Dubai with rental income potential in mind requires a thorough understanding of these factors to maximize returns and attract desirable tenants.
6. Dubai Laws Provide Protection to Buyers
Dubai offers a secure environment for home buyers, ensuring their safety through robust buyer protection laws enforced by institutions like the Dubai Land Department.
These laws consist of a comprehensive set of rules, guidelines, and regulations designed to safeguard consumer rights and prevent individuals from falling victim to scams or fraudulent practices in Dubai real estate sector.
It is also highly recommended to include a sale and purchase agreement when buying an off-plan property in Dubai. Moreover, also do your research on the developer before entering into a sale/purchase agreement.
7. Buyer’s Investment Remains Safe
To safeguard buyers’ investments in off-plan properties in Dubai, the Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD) have implemented strict measures.
Developers can only access buyer deposits once projects reach specified completion stages. Also, the payments must be made through DLD-approved banks. Funds access requests undergo thorough verification by project consultants.
Additionally, developers must provide a 10% performance bond and a 20% bank guarantee for construction funds. These measures aim to protect buyers from fraud, cancellations, and delays, ensuring a secure off-plan property market in Dubai.
Complaints against developers can be lodged on the Real Estate Violation System (RVS), providing investors and buyers with a channel to address concerns and seek resolutions.
You can also explore some of the best off-plan projects in Dubai—the list also includes highly economical options.
