Buying real estate under construction is a common practice among foreign investors. This type of property provides more favorable conditions for the purchase and makes it possible to receive income not only from rent but also from the increase in the market value of the acquired properties. Off-plan projects are very popular in the UAE. To find properties for sale in Ras Al Khaimah or Dubai check out the Emirates real estate website.
What is off-plan real estate?
Off-plan property is a construction project that can be purchased directly from the developer. The market for this property in Dubai is distinguished by a wide variety of property types. Investors can buy villas or apartments in Dubai in both budget and premium price segments. The opportunity to buy such properties is offered by many eminent developers with impeccable business reputations.
Benefits of buying an off-plan property
The main advantage of buying blueprint housing is the possibility of saving money and increasing the capital of the asset. At the same time, many developers offer investors additional discounts and promotions – exemption from payment of registration fees in DLD, several years of free service, etc.
Off-plan housing units have several significant advantages over ready-made buildings:
- Loyal pricing policy. The average cost of this type of real estate is almost 2 times lower than finished properties. At the same time, after the completion of each stage of building, the market value of your asset will grow steadily.
- Payment plans. Many local developers offer investors interest-free installments in 60/40, 30/70, and other formats.
- Possibility of redevelopment by prior arrangement with the developer.
- The possibility of resale of the property before the completion of construction.
- Growth in investment opportunities. The lower cost of this type of real estate allows buyers to purchase properties in more popular areas with a higher return on investment.
Risks when buying off-plan real estate
Buying blueprint property has several disadvantages that must be taken into account. These include:
- Delay in completion of construction. This is one of the most likely risks when buying off-plan housing. The construction of the project does not always go according to the schedule. It is important to make sure that the purchase agreement specifies the deadlines for the key stages of work and a specific date for the completion of construction.
- The finished object does not correspond to the declared plan. To secure your investments and get high-quality real estate, you need to carefully select a developer with a good reputation and finished high-quality projects.
- Closing the project. To minimize the possibility of closing and freezing off-plan projects, the government of the emirate issued Law No. 8 of 2007 “On Guarantee Accounts for Construction Projects in the Emirate of Dubai”, according to which all developers wishing to work with real estate during the construction phase are required to open a guarantee bank account (escrow), which will receive all the funds invested by investors. Access to them will be open only after the developer completes a certain stage of construction.
Real estate in Dubai
When planning to purchase property in Dubai, consider buying off-plan housing. This will allow you to spend less money now and to increase your income greatly in the future. Visit Emirates.Estate website and have a look at the construction companies that can make your dream of living in the emirates come true.
Read also: What To Do With 1 Million Dirhams In Dubai? Buy An Apartment Of Course!