UAE has emerged as one of the world’s most affluent and rapidly developing places. It has evolved from an oil-based economy to an innovative business hub that seeks to capitalize on the country’s geographical location and population diversity.
As a result, it has earned a place in one of the world’s most important commercial sectors. Although UAE is unquestionably a great place to do business, it has a lot to offer just about anyone.
One of the factors that have attracted foreign investors in recent years is the country’s flexibility and breadth of opportunities in the real estate niche, particularly investments in off plan properties in UAE.
Off Plan Properties in UAE are Cheaper
This is perhaps one of the most obvious advantages of purchasing off plan properties in UAE. Unfinished projects are sold at a lower price. Furthermore, when the off plan properties in UAE you purchase are finally built and commissioned, it will cost significantly more than it did when you first purchased it. Given the level of quality that developers strive for in their projects in UAE, the end result can be a true treasure chest.
When you buy off plan properties in UAE you don’t have to worry about market fluctuations – you just stick to the price you paid when you bought it. As a result, if the real estate market increases in value, you won’t have to increase your payments, but the property you’ve purchased will increase in value regardless.
Ensures Easy Payment Plans
Every month, new projects are announced in UAE. This creates a competitive environment in which property developers strive to provide more advantageous prices and more convenient payment plans.
While some developers split the payment into two parts (50 percent upfront payment and 50 percent upon completion) or sometimes extremely disperse it (for example, 1 percent per month), most off plan properties in UAE try to develop multi-step schemes that provide them with a somewhat consistent influx of funds and that suit their buyers.
Investors can sell their off plan properties in UAE even before the project is finished. If the market performs well and the project is well-liked by customers, you can make a good profit by selling it for the difference between its initial cost and its price at the time of sale.
Risks in Buying Off Plan Properties in UAE
Delayed completion time is one of the most common risks. There is no way to guarantee that off plan properties in UAE you invest in will be completed on time. This is why it is critical to conduct preliminary research on the property developer of the project in which you intend to invest.
Before making a purchase, you should investigate the company’s track record and ensure that any sale agreement guarantees compensation in the event of such delays.
A change in market conditions is another common risk. Because of the downward dynamics in real estate prices, the purchased off plan properties in UAE may be worth less than its initial cost. Although this applies to ready-built properties as well, off plan properties in UAE suffer the most because they may be more difficult to liquidate.
Conclusion
Although purchasing off plan properties in UAE is a risky venture, it offers numerous opportunities to the buyer. Responsible buyers can avoid many risks by simply adhering to certain regulations and using common sense. The very least you can gain from purchasing off plan properties in UAE is significant financial savings. And, if you pay attention to the market and do the math, you can even profit from your off plan purchase.