Buying a home or an investment property is an important decision and buyers are often in the dilemma of whether to choose a ready or an off-plan property. The choice generally depends on financial or investment goals, it’s vital to know the benefits of both to make an informed decision.
We mostly know the benefits of buying a ready property that includes being able to physically inspect the property before the potential purchase and to move in just after the paperwork is completed, but the off-plan property has a few added benefits that should be considered before making the decision.
Up to date design and construction
There has been a massive shift in consumer behavior in the last few years as we adopt to the rapid changes in technology, lifestyle and this also applies to how we use real estate.
Developers constantly learn from every completed project and try to implement the findings in new projects to make better use of space that benefits them as well as the end-user.
A ten year property may not have interiors designed to match our habits in 2021. So off-plan offers an opportunity of having a home or commercial property that is just right for the present customer.
A co-working space or a meeting room within an apartment building is a good example of understanding the end-users present and future needs. Many residential buildings in Dubai have these facilities and the idea has been well received as it gives people an opportunity to connect with like-minded people and encourages community spirit. Same works with amenities, many new residential buildings come with smart home systems, these are difficult to add to older buildings as this concept didn’t exist in the past.
In the time between the project is announced and the actual handover there will be new innovations in construction techniques, materials and interior design and the developer has the scope to implement them in project.
Brand new property
This is the most obvious benefit and we have heard it before, being the first owner of a property is much more satisfying than something that has been used before. While buying off-plan property, you can also choose the view, preferred floor number or if you want a corner unit, in case it’s a villa or a townhouse.
This is an important factor for both end-users and investors. Off-plan property is available at a significantly less price compared to a ready one. This gives the buyer an advantage of price as developers compete with each other on price.
The market value of an off-plan property gets a major appreciation upon handover. As the off-plan development starts taking shape and the surrounding areas get better transport links, amenities and retail infrastructure improves, this reflects on the value of the property.
Payment plans and offers
The payment plans for off-plan developments are linked to construction which means you don’t have to pay the entire cost upfront but in smaller installments. Many off-plan projects in Dubai have a booking fee of only 5 to 10% and in some cases the DLD fee is also completely or partially waived off, giving the buyer added price benefits. Projects with long term post-handover payment let buyers pay for years after getting possession of the property, this is not possible with ready properties until you’re buying on a mortgage where a loan interest is applicable.
Customization of the property
Many off-plan projects allow small to major customization where you are given a choice of colors, flooring, or kitchen layouts as per your taste and preferences.
Safety and regulations
Buying an off-plan in Dubai is completely safe. The Dubai Real Estate Regulatory Authority has implemented a system of regulations protecting the buyer against any type of delays or project cancellations. Buyer installments are deposited only in regulated accounts and developers can access them as they meet construction milestones.
Both off-plan and ready properties have their advantages, as a buyer, you need to access the time frame of having the property, availability of funds, and location preferences. Do your research for the developer’s reputation and quality of completed projects. Also, check the builder’s compliance with RERA guidelines before the purchase.
If you want to learn more about the off-plan market in the UAE, take a look in our off plan selection to speak with one of our agents.