The real estate market is one of the major reasons that has helped Dubai, a.k.a. the City of Gold, to paint a success story. The market has a lot of potential for smart investors. The effective policies supporting the real estate sector in the emirate is also helping the cause. Investors from all over the world now prefer Dubai when it comes to making an investment for yielding handsome returns. For instance, you will find plenty of foreigners who own standalone homes and have put up their villa for rent in Dubai. The purpose is to have a continuous stream of income-generating.
Among the investment opportunities in this sector, it’s the primary market i.e. off-plan properties experts believe to be the best choice. Take a look at four reasons that support this claim:
Plenty of Choices
To begin with, there are a host of options available in Dubai for those looking for investment opportunities in the primary market. Top of the line, globally recognised developers are coming up with the latest projects in every part of the city. This has led to major communities such as Dubai Marina having abundant projects where one can find such an opportunity. For example, Stella Maris Tower by Scope Investment presents an ideal prospect. It is the last waterfront development in the neighbourhood on its way to becoming one of the best residential projects in the years to come.
Similarly, other neighbourhoods in the emirate have a lot of projects underway, presenting an array of opportunities for investors to choose from and put their money into good use.
Less Capital Required
One of the major factors that go in favour of off-plan properties is that they do not require a huge sum of capital as compared to ready properties. As these properties are still in the development phase, developers offer them at considerably lower rates than the market value.
The downside here is that it can take years for the completion of the project. Furthermore, there can be inevitable delays as well. For instance, construction work on many projects was halted due to COVID-19 that led to projects getting delayed. Having said that, the policies in Dubai are quite strict in this regard. Even if the developer cancels the project due to any reason, you won’t lose money. Provided you deposited the amount in the escrow account of the project.
When a project gets cancelled and its cancellation has been proved by the DLD, buyers/investors can get their money back via the escrow account.
A Convenient Payment Plan
Another feature that makes off-plan properties a better choice is the convenient payment plan they come with. Investors only have to make a down payment to reserve the unit. The buyer has to pay the rest of the amount gradually in the form of instalments.
It is important to note that payment plans are also available for ready properties. However, they are not as convenient as off-plan properties. Some developers also offer these properties on 10/90 payment plans. This implies that the buyer has to pay only 10% of the property price in advance. The rest is managed through monthly instalments.
A primary reason why a lot of investors opt for off-plan properties is that it provides them with an opportunity to yield a high return on investments. You can buy a unit in a prominent project with high-profit prospects quite conveniently by making an off-plan investment. For example, waterfront homes or apartments have a great demand in the emirate. However, due to their high rates, not many can buy them. But you can buy them in an under-development project at comparatively low rates and earn high returns when they are fully developed.
Other than that, not many know about the fact that these properties can be sold even before they are completed. If the project is located in a prime location, offers start pouring in earlier. Investors can make use of these offers and get a high ROI on their investment. However, note that developers may have restrictions pertaining to the duration after which the buyer can sell the property. Therefore, it’s best to get all these details prior to making the investment.
Ways to Make Off-Plan Investments Risk Free
Now that you have known why off-plan properties are preferred for investment purposes, let’s take a look at some of the ways you can minimise the element of risk with such properties:
- Always buy an off-plan property in a project that is handled by a renowned developer. This way, you will stay protected against many issues. For example, there will be no delay issues since top developers are very particular about their reputation. Furthermore, the quality of the project will be top-notch as well.
- Instead of relying on middlemen, it’s recommended that you buy directly from the developer. Of course, you can hire an agent or property expert to know about the project and its prospects. But when it comes to buying the property, contact the developer. This will save you from incurring additional charges and commissions.
- Pay great attention to the location of the project when selecting it. A development located in a secluded area, away from the city won’t generate profit in a short period of time. Therefore, make sure that it is easily accessible, has plenty of developments around it, and residents can enjoy every facility without any difficulty.
In all, an investment in an off-plan market is certainly the best choice. However, if you are new to the market, it’s better that you hire the services of a real estate expert advisor. Make sure they are skilled and experienced enough to guide you through the entire process, Furthermore, they should be able to assist you in making an informed decision when it comes to selecting the property for your investment. As stated above, the market has plenty of opportunities in form of new residential projects. It can be tough to choose the best out of the lot. An experienced realtor can help you in this regard.