As real estate developers offer new and exciting ways for investors to park their funds, Off Plan Properties in Dubai are continuously proving to be highly propitious for developers and investors, leading not only regional but also foreign investors to become potential buyers.
Off-plan properties triggered a huge increase in market traction with a cautious growth strategy adopted last year by real estate firms, resulting in over 70 percent of all transactions. In addition, by raising the value assets of consumers and capital gains by selling it at a higher rate later on the surrounding low-priced off-plan properties by existing or future infrastructure would have a significant effect on investment structures.
Investors started investing in several different properties and expanding them due to flexible payment plans offered by developers. Dubai Creek Harbour, Downtown Dubai and Dubai Hills Properties, all of which were built by Emaar, are some of the major projects that saw an increase in off-plan sales.
Dubai Creek Harbour, Downtown Dubai and Dubai Hills Estate, all built by Emaar, are some of those major projects that saw a rise in off-plan sales.
Knowing the region's revenues and vulnerabilities and the efficiency of the desired property decreases the risk and gives the investor an opportunity in terms of the competitive advantage required for the UAE's economic growth to flourish.
People from all over the world are coming to the UAE, especially Dubai, with the legalization of foreign ownership, to boost their career and business opportunities in order to gain maximum protection in off-plan investments. In addition, owners of property with properties valued at more than Dh1 million and not in debt are now entitled to apply for either a residency visa or a residence permit.
As needed by statute, it is important to ensure that the project is completed within the timeline allocated to it. For the earliest completion of those plans, the process of linking payments with completion rates, particularly in large enterprises, is important. In order to decide if the developer has given accurate reports, particularly if there is an intention to lease or resell the property in a few months, which may delay the buyer's plans, it is important to go through the developers' previous projects with all the changes happening on the market today.
According to data released by The Real Estate Consultancy, GCP-Reidin, more than 100,000 units were to enter the market by 2017 and 2018 with higher rental yields, like any other project, many risks could arise due to sudden cancellation or delays. In Dubai's affordable marketplace, however, earnings are steadily declining, mainly because the enforcement costs associated with production standards and overhead are decreasing.
Project payments should be made prior to implementation to ensure the production of quick and easy funding through selling real estate units. In addition, payments made for any sort of off-plan transactions in Dubai must be directed to banks that need to be approved by the Dubai Land Department, as Dubai Developers are not authorized to access the funds until such construction projects are verified and decided upon.
One benefit that works for different investors is being able to buy a property without the need to settle the payment immediately, as capital growth will compensate for lost earnings.
Despite risks such as project delays and cancellation, having a price advantage when dealing with off-plan properties will provide investors with high rental yields and capital appreciation.