What are the advantages of investing in off-plan projects in Dubai?
If you’ve been keeping track of Dubai’s property market, you might have noticed many records being broken week after week - especially in the off-plan market!
And there’s no wondering why - with a star-studded array of skyscrapers, an excellent lifestyle, and high-end amenities at easy access, it's a dreamer's paradise.
As more expats and millionaires are relocating to Dubai and foreign investment is at an all-time high, the city continues to develop and redevelop incredible new properties to meet up with the rising population.
Since then, the off-plan market has seen an all-time high in investments. According to our May 2024 report, off-plan investments in Dubai outshined secondary investments by 64%! And trust us when we tell you - while buying ready properties may be easier, there are far too many benefits of investing in off-plan too!
Here are the top reasons why off-plan investments hold great benefits!
Affordable price points
Since off-plan projects are typically sold at lower prices compared to completed properties, this allows investors to enter the real estate market with a smaller initial investment, and you have a chance to get a good price on your hands which matches your budget.
Developers may offer flexible payment plans for off-plan properties, spreading the payments over the construction period, and making it easier for investors to manage their finances. This includes paying 20% upfront and then completing the payment plan after the handover of the property.
This doesn’t always happen in ready properties in Dubai. Plus, with off-plan projects, there are incredibly flexible payment plans offered, be it by the bank or by the developer directly, many investors could pay their property off for up to 10 years comfortably.
Potential for capital appreciation
As the off-plan property is still under construction, there is a potential for capital appreciation by the time it is completed. This means that since the launch, the property has been generating a capital appreciation and by the time it is ready, the property’s value is higher - meaning there is a possibility to earn a good return on your investment!
If the market conditions are favourable, then the value of the property could increase steadily, providing a profit for the investor upon resale.
Choice and availability of units
Investing off-plan allows buyers to choose from a variety of units, such as different floor plans, views, and locations within the development - this is because of the availability and choice presented to investors beforehand.
This level of choice may not be available for completed properties so if you’re one who’s looking for something specific it's always suitable to opt for an off-plan sale. Plus, with the amount of off-plan launches we have seen, there is a wave pool of options out there to choose from!
Modern facilities and amenities
Off-plan properties in Dubai are part of new developments and ideas that usually boast modern facilities and amenities based on what’s trending and what buyers are in search of.
These could include terraces, infinity swimming pools, state-of-the-art gyms, landscaped gardens, security features, and more, making the property attractive to potential tenants or buyers in the future.
Having these choices makes these places more attractive to foreign investors and buyers in Dubai, given its something new and different in the property. There have been multiple launches similar to that this year such as; SIRO in One Za’abeel, which is a wellness retreat and relaxation spot for residents.
Early bird discounts and incentives
Did you know that buyers who are purchasing off-plan properties in Dubai early in the development phase may be offered discounts or other incentives by the developers?
It could be discounts on the overall price or a more spaced-out payment plan.
Potential for customisation
When it comes to buying off-plan properties, you are working with something completely new and untouched. So, depending on the stage of construction, some developers allow buyers to customise certain aspects of the property, such as adding a personal touch to the investment.
This helps as you have the freedom to design your property the way you want beforehand.
A rising demand
Dubai's real estate market has historically experienced rising demand, which comes as no surprise and has been driven by factors such as population growth, tourism, investor influx and business opportunities.
This demand has positively impacted the value of off-plan properties in Dubai, as expats relocating are always looking for homes. This promises you as an investor - a higher return on investment, and if the community is thriving then potentially a good rental yield too.
What off-plan launches have we at Allsopp & Allsopp kept our eyes peeled for?
Some of the top five finest off-plan launches this year you wouldn’t want to miss out on this year are:
SERRA - GHAF WOODS
Price From AED 1,200,000 – AED 3,000,000 - Payment plan of 60/40
Developer Majid Al Futtaim
Handover Date 2027
Take a look here.
GOLF LANE - EMAAR SOUTH
Price From AED 4,480,000 – AED 5,360,000 - Payment plan of 80/20
Developer EMAAR
Handover Date October 2028
Take a look here.
PALACE RESIDENCES - DUBAI HILLS ESTATE
Price From AED 1,760,000 – AED 6,260,000 - Payment plan of 80/20
Developer EMAAR
Handover Date April 2028
Take a look here.
DAMAC BAY 2 - DUBAI INTERNATIONAL MARINE CLUB
Price From AED 2,990,000 – AED 10,000,000 - Payment plan of 80/20
Developer DAMAC Properties
Handover Date Q4 2028
Take a look here.
SIX SENSES RESIDENCES - DUBAI MARINA
Price From AED 5,700,000 – AED 119,988,000 - Payment of 40/60
Developer Select Group
Handover Date 2028
Take a look here.
Ready to buy off-plan?
We’ve got all the listings you need to check out!
And if you have any queries - feel free to contact our Head of Developer Sales; Fintan Flannelly!