If you want to invest in real estate, buying an off-plan property in Dubai is a great choice. And, since the UAE’s freehold law was established in 2002, it has been quite simple to purchase property in Dubai. The city is well-known for its high-end shopping, sophisticated architecture, and vibrant nightlife. Over the years, Dubai has become one of the most popular locations for property investors looking to purchase, sell, rent, or lease property.
Here are a few reasons why investing in off-plan properties in Dubai is an excellent choice.
What are Off Plan Properties in Dubai?
Off plan properties in Dubai are those that have only recently been announced, are only partially completed, or are not yet entirely built. It is one of the most popular investment alternatives in Dubai, and in most cases, these properties may be purchased directly from the developers even before they are completed.
What makes Off Plan Properties in Dubai so unique?
1. Easy Documentation Process
The documentation process is quite simple for off plan properties in Dubai. Property regulations are tightly established in order to protect investors and tenants. In Dubai, there is no such thing as fraud or second thoughts when it comes to documentation. Everything is governed by a set of rules and regulations that everyone must observe. For the safety of the investor, ESCROW (a guarantee account) is maintained by DLD and looks after the investor’s money in off-plan investments.
2. Less Involvement of Risk
While all other investments have the possibility of failing, the risk associated with off-plan properties in Dubai is fairly low. The country’s real estate market will always appreciate, and so will the rewards. Even if the property is not used by the investor, it can provide rental revenue, resulting in a decent return on investment.
3. Good Return on Investment
Significant tax-free income and capital appreciation: Dubai is one of the best places in the world for generating significant tax-free income and capital appreciation. Property prices are far lower than in many other major cities throughout the world. This property is available to all types of investors from across the world, increasing market liquidity.
World’s Best Infrastructure
Dubai is among the top ten countries in the world when it comes to infrastructure and safety. Dubai boasts land, air, and sea transportation to every area of the country 24 hours a day, 365 days a year. Dubai’s planned projects include a hyperloop, a flying tax, and an undersea rail project that will connect India and the UAE via the Arabian Sea.
Dubai currently has the world’s third-best transportation infrastructure. According to the analysis, the development of new infrastructure will cause the city’s industrial activity to rise by 57.4% over the next decade, outperforming other cities. The Dubai Water Canal, which is being built through downtown Dubai, is one of the most ambitious projects being undertaken in the country. Other important projects are also underway to ensure that Dubai remains a top universal destination.
Favorable Amenities Provided for Off Plan Properties in Dubai
1. Complete ownership of the Property
After construction is completed, one obtains complete ownership of property with cutting-edge infrastructure and amenities. For first-time home purchasers with foresight and planning, off-plan property investment reaps a plethora of rewards.
2. Smart Infrastructural Design
Off-plan properties allow you to have a house or business property that is ideal for the current customer. Many modern residential buildings include smart home technologies, which may provide a co-working area or a meeting room within an apartment building. The off-plan properties are designed with the needs of the end-user in mind.
3. Simple Payment Procedure
The payment procedure for off-plan projects is simpler than for ready-made projects. You don’t have to pay the entire amount up front, but rather in smaller installments. Many off-plan properties in Dubai have a booking cost of up to 10%, and in some circumstances, the DLD fee is completely or partially waived off, providing the buyer with additional pricing benefits. The long-term post-handover payment projects allow buyers to pay for years after taking possession of the home, which is not possible with ready properties unless you buy on a mortgage with loan interest.
How to Buy Off Plan Properties in Dubai
- Once you have made a sound decision on investing in off-plan properties in Dubai, there are a few steps to be considered before you finalize the purchase.
- Find a reputable real estate company. After that, purchasing the property will be much easier because they will all be familiar with the formalities, paperwork required, local rules and regulations, and other necessary procedures.
- Examine the property’s location and the surrounding area. Is it close to the metro, has enough shopping and commercial areas, is it connected to important roads, and has other important facilities?
- Find out what amenities are available at each project. You may consider your options and needs before making a decision. Examine the amenities and conveniences accessible on the property.
- There are often hidden fees that the builder does not disclose to you. Evaluate the payment arrangements and make sure you understand what you are or will be paying for.
- Verify the property’s completion date and ask when it will be handed over to you.
- Ascertain that the price at which you purchase has a reasonable chance of increasing by at least 10%–20% at the time of handover. Calculate the cost of the property based on its current market value.
- It’s also extremely important to check if they’re registered with Dubai Land Department
Following all of the above-mentioned tasks on your own can be intimidating. As a result, it is vital to choose a decent realtor that is trustworthy and knowledgeable in the field. Everything else gets easier and less stressful as a result.
Next Level Real Estate provides property management, sales, and investment management throughout the UAE’s most desirable and iconic locations.
Investments in properties in Dubai often require planning, relevant information, and market knowledge. For an inexperienced investor, investing in Dubai’s off-plan properties is a whole new world. The off-plan properties in Dubai include a wide range of projects, making it easy to become confused. What is the current state of the market? What kind of location or unit type would be best for a family? What initiatives have a good return on investment?
All of these questions are best left to an expert real estate consultant who has all the necessary information to simplify your procedure and help you save you time. It is especially important if you want to maximize your return on investment in Dubai real estate. Next Level Real Estate can be your ideal consultant if you intend to invest in off-plan properties in Dubai.