Why Buyers Opt For Off-Plan Projects In Dubai In 2023
We analyse the property market in Dubai and review the top 3 reasons for choosing off-plan real estate against existing housing.
The real estate market in Dubai is diverse, from affordable existing flats to top-tier off-plan new build residences. The latter option continues to gain popularity among buyers, especially international investors. Why is off-plan real estate in Dubai so popular?
Higher Returns
Generally, off-plan projects often cost less than typical existing new build apartments. Moreover, the timing of deals is often swift and, combined with lower costs, presents a favourable feature for investors and foreign buyers.
It often requires just a 10% down payment, which is affordable for many buyers in Dubai.
Payment Plans
Payment plans and instalments are additional benefits of buying off-plan apartments in Dubai. Buyers can divide their payment into several parts, including a 10% deposit, a 30% portion during the construction, and the rest within two years after the completion.
Higher Rental Yields
Upon the construction finish, a buyer can start renting out the apartment. The rising popularity of Dubai on a global scale ensures an influx of expats, driving average rental prices to new highs.
Landlords expect to get at least 5% of annual profit even in emerging property districts like Jumeirah Village and Al Furjan.
Security
Buying an off-plan project in Dubai is secure and safe, thanks to the Dubai Real Estate Regulatory Authority (RERA) and its law that protects off-plan buyers and investors.
In short, instalments are stored within special accounts and accessible to developers only in case of successful completion of the housing project.
