Thinking of investing in Dubai's off plan sector? Here's why you should
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That fabulous new development you've been eyeing could be a great investment opportunity, according to haus & haus real estate experts.
Dubai's off plan property sector is seeing massive growth, with 69 new launches and 6,765 completed units in Q1 2023 alone. From glamorous beachfront towers to gated villa communities – not to mention major developments such as the world's largest residential building and the revival of the giant Palm Jebel Ali – the emirate's off plan scene is more vibrant than ever.
Let’s do a quick recap: the term 'off plan' refers to properties that are under the construction phase. They usually get announced by developers with a 'handover' date, AKA the year in which the project will be finalised and handed to the owner. Launches also come with digitally designed images (or 'renders') of how the project will look once finished.
You may have seen some of these online – but are they worth the investment and waiting period? Here's what our property experts think.
Lower prices
Buying an off plan property will cost you less than purchasing the same unit after completion, a big benefit that investors love. "The earlier you reserve a unit after the project launches, the better the chances for getting it at a competitive price," said Paul Sharland, Senior Off Plan & Investments Consultant at haus & haus. "We see lots of investors buying off plan properties to then re-sell them just before completion and prior to the final payment.”
Flexible payment options
Developers provide easy payment plans for buyers and investors, with down payments being a small percentage of the total cost (generally around 10%).
The price of the property is spread over a few months or years depending on the completion date of the project, making it easier for you as a buyer to pay for your home. Many projects even offer a post-handover plan, meaning that you'll be able to make the final few payments after the property is finished.
Great capital appreciation
If capital appreciation is what you’re after, off plan properties are a strong contender – especially if you invest in the development stage.
"The value of the entire project appreciates as construction continues, so it's like watching your investment grow in front of your eyes," says Jana Zapletalova, Senior Off Plan & Investments Consultant at haus & haus. "Once the development is finished, you've got a lucrative asset in the market."
An unmatched variety of projects
Last but not least, Dubai offers an incredible array of off plan developments. Luxury apartments, family villas, waterfront homes, golf townhouses... the options are truly endless. With new launches almost every week, Dubai's off plan sector offers great opportunities for buyers all over the world – plus the chance to invest in one of the world’s most exciting property markets.
Your type of investment will always depend on your goals, but this is definitely a sector to look at.
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