Looking for an Exciting Investment Opportunity, Why Not Consider Dubai?
Dubai remains a popular destination for real estate investors thanks to a steady rate of property developments, strong legal infrastructure, and high Return on Investment (ROI). Off-plan property has remained a popular choice amongst investors in the region, ever since freehold properties became available to expats back in 2002. In fact, the Off-Plan Property market hit an all-time high back in 2009 with a record 25,000 units sold, and this trend is only growing with each passing year thanks in part to a range of new developments and launches from the local real estate industry.
But Exactly What is an Off-Plan Property?
An Off-Plan Property refers to a real estate project still in the construction phase and a contract for an off-plan property refers to the purchase of the property from the builders during said construction phase.
Off-Plan vs Ready Property
So why should you consider buying a property that is still under construction instead of one that is already completed? Well, there are several benefits to this, such as:
- The property is brand new, meaning that it is built using state-of-the-art technologies and has all the expected lifestyle features and amenities that potential buyers would be interested in.
- Off-plan properties remain cheaper to buy than ready properties due to less competition, which can lead to some serious cost savings for the buyers.
- Off-Plan Properties can also be customized to a higher degree than ready property since it is being purchased during development, allowing room for personalization for the buyer.
The Off-Plan Sector in Dubai
Off-plan properties are becoming the go-to choice for investors, especially after the success of The Burj Khalifa Project which helped renew investor interest in the region due to its incredibly high Return on Investment. This renewed interest has been further bolstered by the Dubai Government thanks to several additional benefits introduced for real estate buyers such as:
Property Taxes in Dubai
One such key benefit of Off-Plan Properties in Dubai is the tax rates or rather the lack of them, as Dubai offers 0% tax for non-commercial off-plan properties while commercial off-plan property owners only have to pay 5% tax as part of the overall transaction.
Moderate Payment Plans
Your budget is the most crucial aspect for any potential investment, which is why when it comes to Off-Plan Properties, most projects offer flexible and budget-adjusted payment plans to attract buyers. These plans usually consist of small upfront payments for buyer encouragement. Additionally, developers often provide post-handover payment options as well to further ease the buyer’s worries.
High ROI Potential
Thanks to Dubai’s thriving real estate market, buying a property, even one under construction can pay off, with the city constantly evolving and developing, the value of any off-plan property can increase considerably by the time construction is completed.
A Diverse Selection of Properties
Thanks to a wealth of projects to choose from all over Dubai, there is something for all kinds of investors, whether you are looking for apartments, villas, or townhouses, there is something for everyone. The range of options to choose from means that investors are bound to find a prospect that aligns with their investment goals. With time, these options will only grow with time and Dubai’s growth.
Higher Capital Appreciation
An exclusive advantage of buying Off-Plan Property is that property owners can attain a Higher Capital Appreciation when they plan to sell off the property or when they place it on rent. This helps further improve buyer confidence in the market.
Reputed Developers
A big part of the reason for the real estate market growing so rapidly in Dubai is due to the fact that it is home to numerous World-Class and Reputable Developers from Emaar to DAMAC to Nakheel. Investing in projects by such high-class developers provides buyers with a sense of confidence that the project will be completed as scheduled and adhere to the highest standards.
Buyer-Friendly Investment Laws
Understandably, Off-Plan Projects come with a certain level of risk but thanks to the efforts of The Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA) to ensure buyer confidence, Investors in Dubai enjoy certain laws and regulations to protect their investment. One such ruling is that buyers are required to make payments for off-plan properties at only DLd-approved banks. Additionally, Developers can only receive access to said funds once the project has reached a certain completion threshold.
Buying With Confidence
Off-plan properties represent an exciting opportunity in the Dubai Real Estate Market, thanks to the flexible payment options, a wide variety of properties to choose from, and high ROI expectations thanks to the world-renowned developers working on the projects. So, if you are interested in getting a piece of the action, check out some of our listings today or get in touch with us via our communication channels here.
