An off-plan is a property that has not yet been built. While it has to be purchased directly from a developer or, in some situations, a first owner. When buying now from the developer, the customer often pays a 10-20% down payment and executes a SPA at the time of purchase (Sales Purchase Agreement). The remainder of payments made can vary depending on the developer but have usually been tied to construction.
Purchasing off-plan property entails purchasing property – generally an apartment – before its completion. Off-plan property is often sold at a significant discount before construction begins, frequently with a small deposit needed. You should be aware of several crucial tips for off plan properties in Dubai, which are covered further below.
Advantages of Purchasing Off-Plan Property in Dubai:
However, there are very many off-plan properties for sale in Dubai and other countries. Let’s discuss the benefits of purchasing an off-plan property.
- Retain Money
Purchasing an off-plan property helps investors obtain a purchase price as soon as feasible and at the lowest possible price. Moreover, it also enables purchasers to select the best flats in a specific complex. This plays a significant role in raising the likelihood of obtaining the highest possible return on their investment.
- Sell Before Completion
Investors frequently sell Off-plan property contracts before the completion of a project. Owners can often trade at a considerable profit if the market has performed well and the project has proven successful.
- Reduced Initial Costs
Payment plans for off-the-plan property can and do vary per developer. The investment required is comparably low, with some developers demanding only a 5% down payment and the remaining connected to construction.
Risks of Purchasing Off-Plan Property:
- Completion Date Delayed
Developments do not always proceed as planned, and there have been instances where projects have been finished after their intended completion dates. As a result, it is critical to research the project developer. Examine their track record and ensure that any sale agreement you sign compensates you for any such delays.
- Market Conditions Have Changed
A drop in property prices can cause the property to be worth less than what the buyer paid. This danger had not restricted to off-plan properties in Dubai. But it may have a more significant impact on them because they may be more difficult to liquidate than ready houses.
The Public’s Attitude Toward Buying Off-Plan:
Buying off-plan properties were once considered dangerous, especially during periods of low or unsteady economic performance. However, deposit guarantees and the consistently performing London property market have significantly increased the popularity of buying off-plan property over the last 20 years, to the point where it has become customary in the UK property market.
Leading property experts recommend the off-plan property as a fantastic way to maximize your purchasing power and potential return on investment.
List of top 10 real estate developers in Dubai:
Here we have mentioned a few top-ranked developers that sell off-plan properties in Dubai. There are several companies that have off plan property for sale.
- Emaar properties
- Dubai properties
- Damac properties
- MAG property development