Looking for Buying OFF PLAN in Dubai 2024? The off-plan market is one truly unique aspect. It provides investors an opportunity to buy into the city without spending all their money at once. In this video, I’ll be revealing what the off-plan market is, its advantages, and disadvantages, and how you, as an investor, can benefit from buying off-plan real estate.
So, what exactly is off-plan real estate?
To put it simply, it’s buying a property that hasn’t been constructed yet. You can think of it like buying a brand-new car – you put in a pre-order, pay some money, and eventually get a brand-new car. It’s the same for off-plan real estate, except instead of a car, you get a brand-new property in Dubai.
How does this work?
It’s through the use of a payment plan. This is effectively a fixed payment schedule where you periodically pay for the property while it’s being constructed. Think of it almost like an interest-free mortgage, except you’re not in debt to the bank.
Here’s an example: A one-bedroom property costs 1.2 million dirhams with an expected handover date in July 2026. You’d pay a 20% down payment, then 5% every quarter for the first 2 years of construction, and finally, the remaining 40% once the property is ready to be handed over.
Now, let’s discuss the advantages and disadvantages of Dubai real estate. The developers I mentioned earlier build some of the best-quality developments in Dubai. If you want to find out more, you can book a call or sign up for my Weekly Newsletter.
Advantages of buying off plan in Dubai 2024 real estate include:
- You get a brand new property with potential for capital appreciation, especially in popular developments and communities.
- You can buy into Dubai real estate without massive upfront costs or debt.
- It helps in managing your cash flow efficiently. You can budget and know exactly how much needs to be paid and when, without sinking your entire net worth into one property.
Now, let’s talk about the drawbacks of purchasing off-plan real estate. The most obvious risk is development risk. What happens if the developer runs out of money or the project looks completely different from what was promised? This happened to many investors in 2008. While today, the money is held in an escrow account, there’s still the risk of property delays or poor construction quality.
To mitigate this risk, invest in high-quality developers with a reputation to uphold. Finally, there’s the disadvantage of waiting for rental income. Some may prefer ready properties for guaranteed rent, while others may prefer off-plan units for potential multiple income sources once ready.
Ultimately, whether you prefer a ready property or off-plan real estate depends on your personal choice, investment goals, and risk tolerance. If you want to find out why I think the off-plan real estate market is about to explode, watch this video, and don’t forget to like and subscribe.
