Dubai has become an international center for real estate investment. Dubai’s real estate market is known for its potential growth and beneficial opportunities that it provides to investors whether they are local emirates or foreign business tycoons, it gives equal chances to invest.
Starting out as someone who wants to put money into properties in Dubai can be a bit confusing, because you must decide between buying places that aren’t built yet or ones you can move into straight away. Dubai is like an enormous playground for people looking to buy and sell houses and items. You really have to think about what , what risks you want to take; and how much you’ve looked into it all when you’re making your choice.
This article is here to sort out any mixed-up thoughts you might have about choosing to buy a location before it’s built, which is called ‘off-plan’, or picking one that’s already done, known as ‘ready’ properties. I’m going to lay out what sets these two kinds of home-buying options apart and run through the big pluses and minuses of each.
Difference Between Off-Plan And Ready Properties
Off-plan properties are pre-construction or properties that are under development and are not completed. Investment in off-plan projects is more trending over the past few years. Potential investors are showing more interest in these types of properties due to innumerable advantages.
The luxury best Off Plan Projects In Dubai for investment offer flexible payment plans in which investors have to pay the total amount in different steps. Initially, the investor has to pay 10 to 15% of the total amount so a mega off-plan project is accessible with low investment in hand.
Ready properties are defined as properties that are already completed and are ready for occupancy or rental. In this type of property, investors need heavy investments in hand immediately they have to pay the total amount, if they have decided to buy this property. Ready-made properties offer high returns right after your investment, you do not have to wait for months or years like off-plan properties to be completed.
Investing in any property, whether it’s something being built (off-plan) that’s already built (ready property), has risks. Each kind has its good points and bad points. We’ve discussed the good and bad characteristics of investing in both types, so you can decide what’s best for your investment goals, how much money you have, your experience; and how much risk you’re happy with taking on.
Pros Of Investing In Off-Plan Properties
New project developments in Dubai are really popular today; they’re great chances for people who want to put their money into something that promises more security for their future; there are a large amount of upsides to throwing your cash into these fresh builds ahead of time. Let me list a portion of the perks for you:
Capital For Potential Appreciation
In off-plan property buying, you put down less cash than when you buy finished buildings. At first, these places aren’t worth much and not many people want them while they’re still being worked on or haven’t even started–but once everything’s built and done, the price and how much people want these properties shoot up. This means they can get a lot more money back from what they put in. So investors who go for these off-plan deals can end up making a nice profit.
Flexible Payment Plan
Developers of off-plan projects offer flexible and attractive payment plans to investors. In this type of property, an investor can pay the amount in easy installments. Different projects by different developers offer various payment plans. In most of the projects, investors have to pay 10 to 15 % amount during registration or at an early stage, and during construction, they have the flexibility to pay the amount in easy installments and the remaining amount is payable after project completion.
Customization
The most exciting benefit of off-plan projects is customization and personalization. In these projects, you are allowed to add ideas for design and decoration. You can choose refined finishing, and unique architectural features and set the interior space of the property as per your needs and demands.
Cons Of Investing In Off-Plan Properties
With the innumerable advantages of investing in off-plan properties, some considerable features do not suit the investors and these features are given below:
Uncertain Delivery Timelines
When building property that’s not finished yet, a person who’s put money into it might not be sure when it’ll get done. It happens a lot that these kinds of buildings take longer than expected, and that can annoy people who are putting money in; they might have other things they want to invest in or might have wanted to actually use the location by a certain time, so when things get delayed, it can make mistakes their plans.
Market Risk
As the market value of the property in Dubai’s real estate business is not constant, we can see the rise or downfall of the property value with time, and prices of the properties can change. Off-plan projects take time to complete, it may take a few months or even a year to complete This can cause the loss of money if the property price falls before the construction is completed. Therefore, investors should be aware of the market risk and its potential effects on their investments.
Lack Of Immediate Income
You cannot expect immediate high returns or income in off-plan property investment, you have to wait till the completion of the project.
Pros Of Investing In Ready Properties
Investment in ready properties has its own set of advantages. An investor may have many benefits of investing in ready properties. In this section we are going to discuss some of the benefits for investors in this type of investment:
Immediate Rental Income
When you put money into a new location to live in Dubai, or if you buy a location that’s already built, you could start making money back basically through rent in a week or two; this rent money could be an easy way for an investor to make cash without having to work a lot for it.
Stable Market Value
Ready properties are developed in established so the market value of these properties is stable and unlike in off-plan properties an investor does not have to face price fluctuation in this type of investment.
Tangible Inspection
In ready property investment, an investor can physically inspect the property. He can visit the property, examine the interior and finishing of the property, and get an idea about the construction material, and condition of the property, and estimate the maintenance cost of the property.
Cons Of Investing In Ready Properties
Some drawbacks of investing in ready properties are given below:
Higher Initial Investment
Ready property demands a higher initial investment. An investor has to pay the total amount of the property to buy it. There is no flexibility in payment. If you have an excessive amount in your hand at a time then you can invest in ready properties and that’s why this type of investment suits potential buyers who have heavy investments.
Limited Customization
You can’t change the property the way you want to. You only have a few ways to make it your own because the people who made it have already finished and made all the decisions.
Possible Maintenance And Renovation Cost
If you own property that’s set to rent, you’ll have to pay for fixing things, or you might have to make it look better so people will want to rent it, based on how the property looks now.
Wrapping Up
Putting money into Dubai’s housing scene is an pretty integral factor. Every choice you make, like putting cash into brand-new places or ones that people have already lived in, comes with good things and not-so-good things. You must figure out what matters most to you when you choose where to put your money.
Before putting money into buying a house or land, make sure you really look into it first; think about the things that’ll work out best for you and decide what you really want, what you need, how much you can spend, and what you’re hoping to achieve.
