Investing in off-plan real estate in Dubai today makes perfect sense – for the long-term investor, Dubai offers many lucrative off-plan investment propositions.
Dubai’s off-plan property market today paints a significantly different picture compared to the freehold real estate launched in 2002. It is better regulated than ever in addition to being more transparent. For instance, developers must present certain guarantees and monetary proof that they are equipped to take up and successfully finish any given project; they do not have the option of abandoning their projects and continue to work even if market conditions slow down.
A plethora of off-plan projects launched in Dubai between June 2014 and 2015 has seen prices in secondary property markets sink by 15%. In some cases, off-plan project prices have hovered around an average of 20% less than the secondary market.
Dubailand has seen the most number of off-plan property launches. Dubai Silicon Oasis follows closely in second along with Downtown Dubai and Jumeirah Village Circle. Off-plan projects by Pacific Ventures Dubai are also worth checking out.
In addition, investors will be delighted to know that the 4% property registration fee has been waived off.
Make an Off-plan Purchase with Confidence
Investing now in off-plan Dubai properties is the way to go and here are some factors you’ll need to bring into the picture.
The market slowdown coupled with a fair amount of stock held by developers mean investors are at better odds of making an off-plan purchase at lower prices. Also, to better accommodate investors and secure more sales, developers are being creative and rather flexible with not just pricing but payment plans as well.
However, these prices will probably not remain competitive for too long as construction moves forward, so will prices. As with almost any market, in Dubai too, it is important to make your purchase during the early development stages when prices are at their most competitive. Early investors get the worm!
Making the Right Purchase
Many quality projects are entering the market giving you a slew of options – Dubailand, Downtown Dubai and Pacific Ventures Dubai offer great ROIs.
Making the decision to buy today is aided by the fact that you can see finished communities from several developers in order to familiarize yourself with their unique infrastructure and community characteristics. This helps you determine what the environment or ‘community climate’ might be like in the months and years to come and ensure the right decision is made.
Laws of Ownership
Laws governing off-plan property ownership are better regulated and well established today. You’ll find it easier to negotiate while making your purchase though you can leave it up to your agent to roll up his/her sleeves and do the tough work.
Real Estate Expertise
Real estate professionals in Dubai are more educated, experienced and better equipped than ever and understand exactly what it takes to shortlist the right project and developer for you. It’s this extensive market knowledge and expertise that help you make well-informed decisions.
Banks are now more confident and ready to provide financing to off-plan project investors; in fact, many banks are now in a position to provide up to 50% financial support. This allows you to get in and out of your investment faster and makes the market generally more accessible to highly qualified and eligible buyers as well.
Developers have been quick to realize that focusing too much on luxury projects puts off investors looking to invest in mid-tier off-plan property. They are now catering more to investors who are looking to pool their finances into relatively more affordable projects. These are usually found in housing communities where there are lower purchase costs and an ever-expanding infrastructure – a high number of units get rented out in the long run.
Properties like that are harder to acquire, though they offer a sizable client market. Therefore, as an investor you should especially be eyeing this segment. Numerous projects of this nature are under development in Jumeirah Village Circle, Dubai Sports City and Dubailand.
Get to it While the Going is Hot
Developers are now offering very competitive payment plans, banks are offering really great financial plans and purchase prices for off-plan property have dropped for the time being – many good deals can be had based on these factors alone.
Due diligence must be exercised on your part – choose wisely so as to where you’ll be making your off-plan property investment and what strategy you’ll be adopting to enjoy the best yields. Better yet, leave it up to a top RERA-certified Dubai agent to take care of your property matters.