Off-plan property is a very popular option for investors, especially those with attractive payment plans and discounted prices, and Dubai is one of the best places in the world to buy off-plan properties.
An off-plan property can be very profitable when buyers make the necessary steps and research to protect themselves before buying. This article explains everything you need to know before buying an off-plan property in Dubai.
What Is an Off-Plan Property?
Off-plan property is an unconstructed property bought directly from a developer, and it is a property yet to be built or is in the early stages of construction.
Buyers rely on brochures and other marketing materials to learn more about the project and property before they buy, and every purchase requires the signing of a Sales Purchase Agreement (SPA) and a 10-20% down payment.
Prices of Off-plan Projects and Penthouses in Dubai
The cost of off-plan projects and penthouses in Dubai differs. With a 10% down payment, you can get a beautifully designed off-plan penthouse in Dubai for as low as 2.2 Million AED. Chelsea International has a range of other properties that fit your taste, which you can find here.
What Are The Benefits of Buying Off-plan Property in Dubai?
Buying Off-plan property in Dubai has its risks and rewards. So, the following are the benefits of buying Off-plan properties in Dubai.
It Saves Money
Buying an Off-plan property lets the investors get the lowest possible price and allows buyers to select the best apartments in a certain development. This plays a big role in improving the odds of gaining the maximum return on their investment.
Lower Upfront Costs
Payment plans for off-plan property vary from developer to developer—some developers of off-plan properties in Dubai. You Can Sell Before the Completion
Investors can complete their projects after they sell them off to buyers. They can sell the contracts of their off-plan property at a considerable profit if they prove popular.
You Can Also Buy Brand New
There is always fulfillment in being the first to use different things, including owning a property.
This is also part of what you get with an off-plan property. With the latest technology and designs, you can purchase a new off-plan property in Dubai.
Risks of Buying Off-Plan Properties in Dubai
We have seen some of the advantages of buying off-plan properties in Dubai. Now, let’s see some of the risks of buying off-plan properties. Some of the risks include the following:
Delay of Projects
One of the most common problems with buying Off-plan properties in Dubai is that there can be delays in project completion. According to a report, 50% of construction projects in the UAE face delay and are not completed on time.
Getting Projects Below Your Expectations
This is a big risk in buying an off-plan property in Dubai. The kind of project you thought you had imagined or seen in the brochures may be different from what will appear in reality.
These are all possible pitfalls when buying off-plan properties, but they are only sometimes the developer’s fault.
The marketing materials and brochures only showcase the best of the project, and it does not mean that all of the features in the brochures will be the same when the project is done.
In as much as these risks of buying an off-plan property in Dubai exists, they can be minimized or avoided completely by choosing wisely and seeking the right advice.
It Can Change Your Financial Circumstances
When buying a property off-plan, you will need to pay twenty to eighty percent during construction while completing the bill at completion.
If you pay the amount in full, you may not be a victim of this kind of circumstance. But if you need a mortgage to complete the payment, you may be at a financial risk because your financial position may change.
For example, if you lose your job and there are no other means of income for you, you may find it difficult to keep up with your mortgage, and unpaid mortgages may also come with penalties of higher interest rates.
And the higher your interest rate becomes, the more difficult it will be for you to complete your payment.
FAQ
What type of off-plan properties can I buy in Dubai?
Different categories of off-plan properties in Dubai include townhouses, villas, and apartments. Also, they have different advantages and possible disadvantages. So, whichever is the best pick depends on your wants, needs, and investment goals.
Can Anyone Buy a Property in Dubai?
The good news about owning a property in Dubai is that the market is open for all and sundry, which is only sometimes the case in many countries worldwide.
So, whether you are a UK or US citizen, no laws restrict you from owning or buying a property in a freehold area in Dubai.
How Do I Sell My Off-Plan Property?
You must confirm with your developer to know their terms and conditions for off-plan property sales. Some developers may require buyers to pay off a specific percentage of the off-plan property before selling it.
This sales percentage is not the same for all developers. So, it is important to research before buying an off-plan property in Dubai.
Conclusion
At Chelsea International, we offer state-of-the-art apartments, homes, villas, townhouses, and penthouses that fit your taste.
We don’t only sell off-plan properties, and our experts also deliver top-notch guidance to our buyers to ensure that they make the right choice before purchasing a property. Give us a call today.
