The Dubai real estate market saw a total transaction value of DH132 billion in the first half of 2017, which was a confirmed increase of 16.9 per cent in value according to the Dubai Land Department.
The rise in the purchase of property is rising in tandem with an increase in supply ahead of the Dubai Expo 2020 and the current buyers making up the bulk of these transactions are end users, expats, long-term investors and first-time buyers, who are driving the stability of the market making it an exciting time to invest in the city with lots of opportunities.
It can often be a bit confusing and daunting however, as a first-time buyer or an expat to understand the structure of the Dubai property market and the difference types of property available. Typically, in Dubai you have two purchase options, either to buy a pre-existing property, or to buy ‘off-plan’.
Buying a property ‘off-plan’ means that you invest in the property at the construction stage, giving you access to much better financial terms (often 40% cheaper) and a greater say in how the development looks. There are many reasons that you would want to buy a property ‘off-plan’, here are the top 5:
Top 5 Advantages of Buying Off-Plan
1) Save Money
The biggest reason that people choose to buy property off-plan is to benefit from the reduced rates that the developers offer for investing in the property at an early stage. If you are able to wait for a couple of years before moving into a property or if you are buying the property as an investment, then you will be able to find much better deals from buying off-plan.
2) Financial Flexibility
Developers are eager for people to invest in and fund the development of their project so they want to make it as attractive as possible. This includes offering flexible payment terms and financing options such as the ability to complete the payment plan two to three years after completion of the project. This is extremely beneficial for first-time buyers who may need slightly longer to save for a larger deposit.
3) More Options
When buying off plan, you can have more of a say in how you want the property to look, or about the final fittings and fixtures. Some developers will actually let you choose from a couple of different color schemes too!
4) It’s new!
This probably means more to investors in the Middle East than anywhere in the world because of the harsh climate of the desert. The extreme temperatures, dry air and strong winds common to Dubai can cause properties to grow older much faster, therefore the newer the property you are purchasing, the better.
If you are looking to move into the property, you will get to enjoy the satisfaction of being the first to make memories in the home, or if you are an investor, you can be sure to be able to charge higher rental rates.
5) Lower Maintenance Fees
This point is directly related to number 4! By purchasing a brand new property, you are avoiding the extensive maintenance charges associated with an older property.
This relates not only to your specific unit, but also to the communal maintenance fees that can rise sharply when it comes time to replace sizeable objects like elevators.
So there you have it, just 5 of the reasons that you would want to buy a property off-plan, and I think you would agree that they are pretty convincing.
If you are able to extend the period before you need to move into your new property, rent it out, or to sell it to release the capital gains, then buying off-plan is definitely a highly attractive and profitable option.