The current market is definitely dictating a trend and is a clear indication of the popularity behind off plan property sales.

This blog is not about affirming that off plan investment is necessarily better than ready properties, but is all about highlighting the facts. The current real estate market is definitely favoring both off plan and secondary sales. For instance, only last week’s revenue amounted to AED 4.9 billion worth of property transactions, with 1,254 units sold, as per DLD reports. Current market conditions benefit all investors looking for long term as well as short term capital gains.

The Benefits of Picking an Off-plan Property

Easy Entry: One can make a small down payment of 5%-10%.

Flexible Payment Terms: In certain cases, developers offer post-handover 2-5 year payment plans. The advantage of living in the property or rent it out before paying it off.

Rental Income: This greatly helps to support paying off for the property; a benefit only off-plan property offers.

Custom Developer Offers: Developers have custom offers such as waiver of a percentage of the registration fees and/or discounting the service charges for 3 to 5 years period. This again aids in reduction your initial payout to the developer.

Lower Price Advantage: Properties under construction are priced significantly lesser than ready properties. Early stage buyers can take advantage of this while also enjoying property value appreciation over the course of construction of the project.

SAFE

On an international scale, there certainly is a risk associated with an off-plan property mostly due to delays or cancellations. But in Dubai, these risks are greatly reduced through the Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD) guidelines alongside the usage of escrow accounts. Authorities monitor the developers’ financial stability and also mandate them to provide a bank guarantee amounting to 20% of the project cost to get an assurance of project completion.

Good return on property investments allows investors to consider investing in property and in addition to the investment, the chance to avail residency and full ownership, the same way centrality would attract several investors for a variety of reasons with the added benefit of flexible policies and safety. The real estate market of Dubai is bound to experience a huge surge during this period. So, if you are contemplating investing in real estate in Dubai, this is the best time to buy property in Dubai!

A benefit of purchasing an otherwise risky off-plan property in Dubai is that the process here is becoming more and more regularized as well as monitored by authorities. Developers’ financial backgrounds are checked to the absolute tiniest detail to ensure they have the required funds to complete their projects. Regulatory authorities in Dubai, namely Real Estate Regulatory authority (RERA) and Dubai Land Department (DLD) even require developers to deposit 20% of the project’s cost as an added guarantee, easing any anxious concerns buyers may have before investing their money into beach front properties. Therefore if the benefits of the two types of properties were to be laid out, buying off-plan would definitely be a better choice allowing you the benefit of creating your own home, a dream come true for many.

Buyers should always check the history of the builder selected by them. If a builder has done great in the past, there is a good chance that he will be able to deliver the same. Hence, the track record of a builder is paramount (key Factor)

Benefits of Picking a Ready Property

What you see is what you get: This helps make best informed decisions as against a project that is at its early stage that leaves you with a lot of guess work. One can check all parameters and make a purchase with complete information leading to joy and peace.

Quicker Capital Appreciation: Yes! The cost is going to be higher than an off-plan project, but the returns to are greater. You can expect higher rental revenues and take advantage of constant market value appreciation

The Expo2020 is around the corner, and surely the real estate market is going to see a surge with over 25 million tourists from over 150 countries coming into Dubai. All of whom would need a place to stay. So, it’s a good time to buy. Whether you opt for the off-plan option or ready to move-in one, it’s recommended you do your due diligence by associating with an experienced broker who is more familiar about the market trends.

There is an equal amount of opportunity for either option that needs to be analyzed to make the right decision. Doing due diligence with the help of experienced brokers is key, keeping in mind the current market trends.

Quick Selling

High Rental Yield

The biggest benefit associated with ready properties is that they can be put up on rent to earn a passive source of income. Depending on the location of the property, its configuration and facilities available, it can generate a high rental yield.

Ready properties are considered safe for foreign investment as they tend to sell quickly. As the property is fully constructed, there’s no waiting period. The buyer reserves the right to sell their property at any given time, provided it’s not mortgaged.

both ready and off-plan properties come with a set of pros and cons when it comes to selecting them as a foreign investment. The ultimate decision comes down to your preferences, and most importantly, the budget.

Cons

Well constructed? – The biggest negative that comes with a ready-to-move home is that you have no idea of how well it has been constructed- in terms of materials used, in terms of strength of its foundation and so on. Given a shabby maintenance, the house can start to look old in no time!

Expensive – Also, the price of a ready-to-move home is about 25 per cent higher than that of an under-construction home.

Maintenance issues

Payment plans are not flexible, usually you will have to pay the full price at once.              

Inflated cost – since it is a ready property the prices will be really overpriced.              

Limited choice – Once you choose a project, there is a very small chance you get preferred floor and view

Limited modification – you don’t have much choice to further modify the property internally.

If you plan to re-sell the property you might spend lots of money remodeling.