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Dubai’s rapid price recovery, most especially in the off-plan residential property sector, has created doubts in homebuyers’ minds because it seems like investing in thin air. The lack of understanding vis-à-vis the value of an off-plan property is what creates this misconception of insecurity. Ask the experts and you will be baffled by their responses.
An investment in an off-plan residential project can equate to a coal that has a diamond beaming in its bosom. You will need to do some careful financial analysis which will enable you to determine the value of the project you are interested in and unearth your potential of investing in off-plan property.
A major advantage of buying off plan is its potential for profit. These off-plan properties are sold off at a very low rate as compared to the completed luxury homes on offer at premium communities. It may be the case, and very often, that the price of the property increases after completion. This type of investment allows expatriates to own a home at a lower price and secure it with as low as 10 per cent deposit while they later indulge in the comfort of a creation that is worth more than what they have paid for.
When buying a home, treat it as an asset. This investment is something that requires in-depth planning. Before running after a reservation token at the gates of a newly launched project, as a home buyer, innovate plans based on the development of the project. The development of the project also gives you an idea about the way things are shaping up, what to guard against and what else to plan for. Practically, if you invest in an off-plan residential property right now, the price may climb up to 80% or even more by 2020. Expect a considerable profit if you decide to sell.
It is possible to have the best location, best price and a customized residence if you are investing off plan. Some developers allow buyers to customize the design of their homes based on individual characteristics that reflect their personality.
Buying off plan is not free from concerns attached to it. Look for a reputed developer that has its legal side well-sorted and an impressive portfolio in the real estate market. Explore the world of off-plan properties and its increased value over time.
• Review the contract and get legal advice before signing any purchase deal
• Dubai developers offer payment plans which only require 10% to 20% deposit
• Buy an off-plan at current price for it will cost much more after development
Source: Priyanka Kotoky, Special to Properties
The writer is Social Media Content Writer, Silver Heights Real Estate