Buying off plan has over the years proven to be a great way to invest in the property market. So why exactly should you by an off plan property? Lets have a look at some of the top reasons why every investor should consider buying off plan next time they decide to buy in Dubai.
Buy Brand New and Get First Pick
When buying off the plan, you get to pick your apartment first as well as buy it brand new. This means you get the chance to pick the very best apartment/s available. If you wait until construction has completed, only the leftovers will be available at best as most projects sell out well before completion.
Less Up Front Costs
Buying off plan unlike buying on the secondary market only requires a 10 to 20% payment up front. The rest of the payments are usually staggered and linked to construction meaning your up front costs are drastically reduced.
When you buy off plan, you lock in your price and buy at todays prices. As general market prices increase your property goes up in value as well. It is not uncommon for prices to go up as much as 20% to 30% during the construction period meaning buyers who bought off plan benefit greatly.
Ability to Customize your Property
Off plan buyers often have a choice in the final design and style of their unit. Whilst some developer are more flexible then other most will provide buyer with a degree of flexibility in terms of layout and certain inclusions.
Sell Before Completion
Most developers will allow you to sell your property before the project has been completed. Assuming prices in the development you have purchased have risen you could reap the benefits almost straight away without having to wait for your property to be handed over.
Peace of Mind and Security
An off-plan property is brand new which means there tends to be less repair and maintenance costs, giving you more peace of mind that things won’t need repair. By law developments come with a developer guarantee which also ensures that if there are any issues these are the responsibility of the developer. The length of these guarantee does vary from so its worth checking what the law states in your city.
No Maintenance Issues
When you buy off plan you but brand new. Assuming you bought from a reputable and quality developer your new property should be in brand new condition. This means everything will be in perfect working order and you will not face any maintenance issues such as plumbing or electric for a very long time.
As you can see there is a vast range of reasons to purchase off plan property. If you are an investor or a first buyer not looking to use the property straight away then we strongly suggest you consider an off plan property as your next.
Just when we thought Dubai Marina was all but fully completed a major new project has just been announced. Named Dubai Harbour this 20 million square foot project is to be developed by Meraas Holding. Once compete it will contain a 135 metre-high tower – Dubai Lighthouse which will house a luxury hotel and an observation deck. The development will also feature a 150,000 sq ft cruise liner terminal capable of handling 6,000 passengers, as well as entertainment and retail space, a yacht club, shopping mall as well as numerous hotels and residences.
The new development will feature tMiddle East’s largest marina capable of handling 1,400 vessels.The 1,400-berth marina will increase Dubai’s capacity for handling yachts by almost 50 per cent from to over 6,000. The location of the project is
Mina Seyahi on a plot between Jumeirah Beach Residence and Palm Jumeirah off King Salman bin Abdulaziz Al Saud Street (formerly Al Sufouh Road) Once finished it will will integrate the current Skydive Dubai, Dubai International Marine Club and Logo Island sites into a single connected community.
The first phase of this ground breaking project is set to be completed before 2020.
Buying a property off plan is basically buying from a brochure. It does for this reason carry a little bit more risk. With that said however with the right research and due diligence you can eliminate a lot of that risk and ensure you get what you signed up for.
Here are some of our top tips for buying off plan in Dubai.
Know your Budget
Get yourself into financial order and ensure you know your financial position. Read the payment terms offerd by the developer very carefully and be 100% clear on your obligations.
Do your research and due diligence
Before you put pen to paper its important to understand the median apartment prices growth, vacancy rates, rents, employment statistics and demographics. Get to know the area your are considering and look for anything that could have a positive or negative impact on your future property
Use a reputable developer
Ensure that the project your are considering to buy in will be constructed by a reputable developer. The best way to do this is by checking that the builder has a strong history of completed projects on time and with hight quality finishes.
Check Certification and Liscence
Ensure that the developer has all the correct liscencing. Also ensure the project has all the right development and construction approvals., and that the builder and developer have taken out all relevant levels of insurance.
Quality of Finishes and fixtures
Make sure that finishes and fixtures you are promised is what you actually get. Ensure these are guaranteed in the contract so that way there will be no surprises at the end.
Do not get too emotionally invested
It’s easy to get emotionally attached when buying an off plan property whether its for you to live in or an investment. Be sure to concentrate on the solid facts and figures rather then pure speculation of just the world of the developer. This will go along way in helping you determine whether this property is a good investment or not, rather than letting the pretty pictures sway your decision.
Welcome and thanks for stopping by! We are pleased to inroduce our new blog where you will find loads of useful information and up todate news on the Dubai off plan real estate market. Our blog will feature latest project announcment, developer info and basically anything interesting related to the dubai off plan market. Stay tuned!