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Why investors around the globe are flocking Dubai real estate market to buy off-plan properties

Posted by Admin | Aug 04, 2022

Off-plan property is one that is still in its developmental or pre-developmental phase. The term is also used for newly-announced properties, partially-completed or ones that are still undergoing construction. It is gaining popularity in Dubai as well. The government is strict in enforcing rules and there is a lot of transparency as well. The chances of encountering scams are really low. 

Let us see why off-plan properties are attractive to the audience: 

1. Gets the best deal on prices:

Property investments are usually risk-free. Investing in off-plan properties in Dubai gets you properties at a significantly lower price. It will guarantee great returns in the long run. For investors who want to gain the maximum, off-plan projects are your safest bet. 

Since off-plan properties are yet not available for the investors, the onus is on the property developers to pull in more investors. They end up offering flexible payment options to lure investors. 

2. Higher capital gains:

Real estate in Dubai has proven to be a good investment. It is safe to say that the value of the property will increase during its construction itself. Local areas and neighborhoods play a crucial part in the appreciation of property values. If it turns out to be a nice community, it will fetch you higher returns. Off-plan properties can also be made into a quick profit even before completion, especially if the project has become popular in the eyes of the investors. 

3. Tax-free investments: 

One of the most attractive reasons to invest in Dubai’s real estate is because of its tax-free policy. The Dubai government doesn’t levy income or capital gain tax on the investors and is one of the few places that offers a tax-free status.

4. You’ll get a brand new property:

When you choose an off-plan property, you can be assured that it is a brand new property that is being constructed. It will have the latest lifestyle features and amenities. You can even instruct the builder to add a few things based on your liking. 

5. Higher rental yields: 

There is a steady increase in expats settling in Dubai. So, you will never have to struggle to find tenants for your property. When you buy an off-plan property in Dubai, you will earn a decent rental income from the investment. It will give you financial security and provide a place to stay for the tenant who has come to Dubai for greener pastures. 

6. Buyer protection laws:

Dubai Land Department (DLD) and Real Estate Regulatory Authority (RERA) have taken numerous measures to grant buyers protection against cancellations, delays and frauds. Buyers are instructed to make off-plan property payments only at DLD-approved banks. Property developers will be given access to funds only after the project has reached a certain stage in its completion and it has to be verified by consultants. 

A law was passed recently where developers must provide 20% of construction funds as a bank guarantee along with a 10% guarantee performance bond by the contractor. Such measures increase the confidence of the investors and creates a safe climate for every buyer. 

Wrapping up:

If you have been going back and forth on investing in real estate in Dubai, off-plan properties can be a great addition to your portfolio. Get in touch with Sky View Real Estate to understand how we can help you. 

 

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