People from around the world are continuing to choose Dubai for real estate investments, though Dubai offers multiple real estate investment opportunities, off-plan investments has gained immense popularity. If you are a potential real estate investor here is a little bit of an introduction to off-plan properties and their unique advantages.

What are Off-Plan Properties?

Real estate projects that are in the planning stage or under construction, that will take a minimum o one year to a maximum o five years to be handed over to you are called off-plan properties.
You can purchase this property before completion, making a decision based on marketing materials provided by the developer/real estate advisor and its architectural plans. So, why would an investor choose an off-plan property to a secondary property? The potential for capital appreciation for off-plan properties and its attractive pricing, up-to-date design prove to be an excellent investment opportunity for investors.

Key Advantages:

1. Attractive Prices and Flexible payment plans: Developers often provide extremely good offers on the soft launch of the project, the faster you grab a unit, the better benefit you receive. Managing funds is never an issue because all developers offer very competitive payment plans that helps you to pay for your property in installments till the handover. You can secure a valuable asset while not having to worry about managing your finances.
2. Capital Appreciation: But let me tell you, the top most point you’d want to invest in off-plan is its potential for significant capital appreciation. When the project continues to progress and nears completion the property value considerably increases bringing in profit If the investor wishes to flip it. An investor is bound to receive substantial returns on their property if they choose the right project, developer and area.
3. Customization : In off-plan you have the opportunity to customize various aspects in your unit such as the layout , the fixtures and the finishes. Most properties come semi-furnished with appliances. The customization increases the appeal of your place along with its value.
4. Location and Amenities: Dubai is a land of continuous development. New areas, new communities are continuously getting developed day-by-day and so is the world of housing also evolving. The developers are often developing projects in different areas with amenities that keep getting updated and increased substantially for our benefit and comfort. You can choose a prime location or ask your real estate advisor to help you choose an area that will give you high capital appreciation which also has access to facilities like schools, retail spaces and parks and also has modern amenities like saunas, out-door theatres, Cabanas, Barbecue Areas and much more.

5.Government Incentives: Foreign investments are always welcomed and encouraged by the UAE government. The government offers incentives like investment visas and Golden visas for property owners. The supportive environment has made off-plan investments gain significant popularity over the past years.

Considerations And Risks

Although the pros off off-plan investments outweigh the cons it is still important to assess all risk factors before taking any decision. Here are some risks associated with off-plan property investments. Constructions get delayed, there are changes in market demand and fluctuations in value of properties that can affect the outcome of your investment so we recommend you do thorough research on the developer,their project timelines and market condition or take help from property advisors to help you with taking decisions that can help you mitigate risks.

Market Trends:

Even during challenging economic conditions the Dubai Real Market has always shown resilience and growth. The recent trends in the market have indicated a high demand for off-plan properties in Dubai South, DLRC, Jebel Ali, Dubai Marina, Business Bay, Downtown and Dubai Creek Harbour. There is also an increase in buyers looking to invest in luxury projects in prime locations and eco-friendly projects.

Conclusion:

If you are looking to dip your toes in the real estate market or are a seasoned experts off-plan properties in Dubai offer a unique investment opportunity for you. The potential return in off-plan is high, the customization options are luring, the market conditions are favourable. Off-plan properties are a perfect choice for real estate investments however we do recommend you to take proper diligence or take help from real estate advisors who are willing to give you best advice and help you steer clear of investing in wrong projects and to take informed decisions and to navigate Dubai’s dynamic market. Dubai is an ever evolving Emirate and you need to stay informed about market trends and new opportunities to help you make smart investment decisions.