Nowadays, we happen to hear the words 'off plan property' a lot, but what does it actually mean? How is it different from a normal real estate development and why should investors and first-time buyers take an interest in it?
Off plan property means a property that can be purchased before the construction has even been completed. After the announcement of the World Expo, Dubai developers released several off plan projects that are expected to be completed by the year 2020. Buying a property that hasn’t been developed sounds like a risky investment, but the advantages outweigh the cons. Here are some reasons why you should invest in Dubai off plan.
The Price Difference:
With attractive offers and feasible payment plans, the overall price of a Dubai off plan property becomes a lot lower than a constructed development. Investors, and especially first-time buyers can take advantage of such ambitious projects being offered at lower prices. With the abundance of ambitious projects being announced every month, property developers provide competitive payment plans that even go beyond 40% post-handover, which is a major advantage to the investors of these properties.
RERA or the Real Estate Regulation Authority and the Dubai Land Department (DLD) have implemented strict laws to safeguard the rights of the investors from scam and fraudulent cases. According to latest laws, no developer can advertise any project without owning 100% of the land. Any payments made to the developer will be protected under an ESCROW account held by Dubai Land Department (DLD), of which only 5% can be used by the developer for marketing purposes. The developers will only get further payments after the DLD certifies that the development has reached the required construction percentage. If a developer fails to follow any of the above requirements then the investor can file an arbitration case against the developers and get a full refund with interest.
The Variety of Projects:
There are several types of projects that can leave an investor spoilt for choice. Whether they choose to buy a property within the central city or purchase real estate in Dubai’s outskirt communities, today's Dubai property developers have something for everyone. Buyers can even choose to purchase a high-end project, or to invest in affordable housing.
One of the biggest advantages for buyers who invested in off plan property is that once the project is completed and ready for handover, its market value shoots up. Those who invested during the off plan stage will be able to enjoy the capital gains and a high return on investment (ROI) that will surpass the original investors' payment.
With the rise of success and stability in the market, developers and property agencies encourage first-time buyers to invest in Dubai off plan properties. Leading real estate brokers, Driven Properties is one such agency that has special off plan consultants who can assist and guide all prospective buyers in attaining an ideal investment that suits their specific needs.