Why off-plan properties are better for investment?

Dubai’s vibrant real estate market has seen massive interest in off-plan properties. Here are the benefits:

Lower Prices and Flexible Payment Plans

One significant advantage of investing in off-plan properties is the price. Off-plan properties are usually sold at prices relatively lower than ready homes. Developers provide exclusive pre-sale discounts and offer incentives like waived fees or free upgrades to attract buyers during the early development phase.

Developers also present easy payment plans for off-plan properties. These plans normally allow investors to distribute payments over a certain period, relieving the financial commitment and reducing the initial payment.

For example, a 50/50 payment plan requires 50% of the total cost to be paid during the construction phase, with the remaining 50% due upon project completion.

Potential for Capital Appreciation

Off-plan properties always maintain excellent prospects for capital appreciation in the real estate market. As the project approaches completion, the property’s market value typically boosts. Early investors always profit from this price appreciation, as the property they purchased at a lower price sees a higher profit before it is even ready.

Early investment will likely sell higher once the project is completed. This value increase may result from market demand or improvements made to the property.

The objective is to complete the purchase and sale relatively quickly, maximizing profit quickly. For investors looking to “reverse” properties, off-plan investments can lead to a healthy profit margin.

Customization Opportunities

When you plan to invest in an off-plan property, you have more freedom to customize your homes according to your choice and precedence. Depending on the construction phase, you can often choose layouts, design elements, or even specific interior materials to make your property more unique and according to your taste.

Unique customization can also add value to the property, making it more appealing to future buyers if you plan on selling or renting it out.

Modern Design and Technology

All off-plan properties are brand-new developments, which means they are located in newly designed communities and come with the latest architectural trends and modern designs. From energy-efficient techniques to smart home features, newer properties often deliver a higher standard of living with lower maintenance expenses.

It is highly profitable for investors because this modern appeal is highly attractive to potential residents or buyers, making off-plan properties more competitive in the rental and resale markets.

Potential for High Rental Yields

Most off-plan projects are in high-demand areas with the best community facilities and promising infrastructure development. This means there must be high rental yields, particularly in growing markets like Dubai, where rental interest is significant.

Off-plan properties typically have a significant potential for higher rental yield. Buying an off-plan property at a lower price increases the possibility of better returns on investment through rental revenue once the property is ready for handover.

Lower Maintenance and Warranty Benefits

When brand-new off-plan properties are handed over, investors can expect lower maintenance expenses in the first few years. New properties are fresh construction, so you won’t have to worry about major repairs or renovations anytime soon. In addition, most developers offer a warranty that covers any issues or flaws that may arise in the first few years of owning the property.

This extra reassurance is essential for investors looking to underrate potential risks associated with property ownership.

Developer and Government Incentives

In Dubai, purchasing off-plan property is among the most profitable investment opportunities locally and internationally. Developers and the government offer incentives and benefits to encourage this investment.

Developers may offer promotional discounts such as reduced or waived registration fees. At the same time, governments may provide procedures with that attract real estate investors, such as investment or golden visas or decreased property taxes. Investors are leveraging these incentives to improve the profitability of off-plan property investments, making them a more attractive choice than ready-built properties.

At Chestertons our dedicated agents will help potential investors and buyers to understand the advantages of off-plan real estate and why it is a smart strategy for investment.

If you have any more questions, please do not hesitate to ask us. For a step-by-step guide, read here.

Call us on: +971 4 381 0200