Whether you’re an end-user or investor, an off-plan property in Dubai is considered a smart choice of investment. It offers attractive payment terms, selling at a lower good resale value, and can be a profitable asset if you chose to have it as a holiday home in the future.
Benefits of OFFplan Properties
Buying off-plan has a slightly different purchase process when compared to pre-built buy to let property however, once familiarized with the general process and the additional advantages, investors often find off-plan property to be an incredibly viable investment option.
Purchasing off-plan has many benefits – here we’ll look at several of the main ones:
- Increased ROI: Those who purchase property off-plan benefit mostly from house price growth. If a property is purchased in 2016, but isn’t due for completion until 2020, when the property is completed, they will have seen their property grow in value each year. This can add value to a property, especially if it has already been purchased at a discounted price from the outset.
- Purchase prices are significantly lower than average: One main advantage of buying property off-plan is the ability to secure the purchase at below market value. Some developers are offering additional discounts for investors purchasing multiple properties at any one time as an added incentive.
- Ability to re-sell at a profit before completion: Investors can choose to put their property up for sale and sell at a higher market value. But you would see much more of a capital growth benefit by tenanting the property and also gaining the benefit of a regular rental income, in addition to capital growth.
- Small deposits and payment plan over 5 years: Some off-plan deals have the added benefit of staged payments. These payments can help spread the cost of the purchase and enables investors to purchase property without a significantly large deposit.