Hardly any other city in the world has seen as big of a transformation as Dubai in the past several decades wherein it has transitioned from a small fishing village to a global conglomerate of urban developments in retail, fashion, tourism, natural resources, and finance. All these have undeniably resulted in a booming market for real estate that draws people from around the world.
With breathtaking architecture of the finest artistry, the Dubai skyline is nothing short of a masterpiece by a painter. Among the numerous types of properties, one section that has emerged as a profitable and feasible source of investment in the Emirate is that of off-plan properties and in this space, we are going to discover exactly what has led to it.
Why Is Dubai A Perfect Place For Investing In Off-Plan Properties?
Before we get into the reasons why Dubai is a perfect place for investing in off-plan properties, let us get to know what off-plan properties are. These are essentially the projects that are in their development stage or are under construction.
Investing in an off-plan property refers to signing a contract between the property developers and the investors or buyers when the project is yet to be completed. Now that it is clear and out of the way, let us find out the benefits of investing in the same in Dubai.
High Rental Yields
One of the key drivers that motivate investors to buy off-plan properties in Dubai is the high rental income they can benefit from. In a city that doesn’t show any sign of slowing down and where there is always a steady flow of expats due to the vast job opportunities and business scope, demand for renting options is always high.
There is a large section of the society, especially those who come in from abroad and the other Emirates of the country for work, rely on rental options, which is why, you will always have a steady and handsome source of income in your hands. With state-of-the-art amenities and ease of navigation in a city like Dubai, you will never run out of splendid rental options to fill in your pocket.
Flexible Payment Plans
Compared to completed projects, off-plan properties are not only economical in terms of pricing but also offer affordable payment options. As such, people who can’t pay a large sum of down payment can also invest in these properties.
With so many top-notch developers constantly announcing new projects, the inner competitiveness allows for the pricing and payment plans to not reach sky-high, especially compared to finished projects. Most projects require minimal booking with the rest being paid during construction and handover or through extended low monthly payment plans.
Extensive Options for Property Types
The diversity that you can experience in Dubai when it comes to property types among the off-plan ones is through the roof. Whether you fancy an opulent villa or an economical apartment, a lavish townhouse or an affordable studio, a residential property or a commercial one, or even a mixed-use type, you will find everything here.
Furthermore, these properties are in some of the most prime and strategic locations of the city such as Downtown Dubai, Business Bay, Dubai Hills, and Jumeirah Village, among others, that have vibrant communities and friendly neighborhoods along with ease of accessibility. So, you can have your choice of property type in your preferred location.
Safeguarded by Buyer Protection Laws
The government of the UAE has laid out strict and robust laws to grant protection to buyers against fraud, cancellations, and delays when it comes to real estate off-plan property investments. The RERA (Real Estate Regulatory Authority) and Dubai Land Department (DLD) provide the much-needed protection to ensure the investments are safe and sound.
This includes allowing payments of such properties at DLD-approved banks only, allowing developers to access funds only at the completion of the project, the developers providing construction funds as bank guarantees, among others.
Effective Capital Gains
Since the UAE is one of the fastest-growing economies in the world, investments in off-plan properties are extremely favorable in terms of ROI (Return on Investment). No matter what is the price of the property before and during construction, it will exponentially increase after the completion of the project.
As such, you can witness a rise in the market value of your property which will prove extremely beneficial if you decide to sell it before or after the completion of the project. If it is in a favorable location and is backed by a leading property developer, then the rates would further increase, heightening the chances of capital gains for you.
Conclusion
Off-plan properties are extremely lucrative and provide ample reasons to be investment-worthy. From the diverse options available to the flexible payment plans, from high rental returns to the immense capital gains, these properties are a boon for anyone who invests in them. Furthermore, with the protection of the law, when you invest in the right property after proper verification and research, you tighten the security of your investment, thereby ensuring your investment is safe and sound.