The Psychology of Buying Off-Plan: Why Investors Are Willing to Wait Years for ROI

Buying an off-plan property in Dubai may seem unconventional to some people. After all, you are putting your money into something that only exists on paper. However, there's a reason why many investors do this, and it's not just blind faith. They know what they are doing, and they understand why people make these choices. Let's examine why investors are willing to wait for years to receive returns when they purchase off-plan properties in Dubai.

Dubai's Off-Plan Market in Perspective

In 2024, the Dubai Land Department registered 226,000 property transactions worth a total AED 761 billion. It marked a 36% rise in deals and a 20% increase in value from 2023. That year also saw a historic 2.78 million real estate procedures (including sales and rentals), representing a 17% increase. Off‑plan sales accounted for over 60% of all property deals in 2024, contributing around AED 213 billion in transaction value from 102,000+ off‑plan sales.

In the first quarter of 2025, Dubai recorded approximately 42,000 total property sales, valued at roughly AED 114.4 billion. Of those transactions, 69% were off‑plan deals. That's almost 29,100 properties sold before construction started. We can say that seven out of every ten investors are choosing to invest in projects that are still on paper, which reflects strong confidence in the future market.

But it's not just about numbers. There are some deep psychological reasons why people are willing to tie up their money for years without seeing an immediate return.

The Fear of Missing Out (FOMO)

That feeling you get when everyone else is doing something cool, and you are not. In Dubai's property market, this is a huge driver. Developers release a limited number of units, and the best ones sell out quickly. People hear stories of friends or acquaintances who bought off-plan a few years ago and are now sitting on a nice profit, which creates a sense of urgency. Some new projects in Dubai sell out extremely quickly, with all units booked within hours or days of their launch. That kind of rapid uptake fuels the belief that off-plan is where the real opportunities lie.

The Power of Perception

Off-plan properties are offered at a lower price than a comparable, already-built property. It's the developer's way of encouraging early commitment, and it makes perfect sense from a business perspective. But for the buyer, it feels like a genuine discount and triggers a feeling of smart decision-making. They feel a sense of satisfaction in having outsmarted the market, even if only slightly. The initial price advantage is a primary motivator for accepting a long waiting period.

Easy Payment Plans

Putting down a huge chunk of cash all at once for something that doesn't exist yet would scare anyone. This is where flexible payment plans come in. Developers structure payments in stages: a down payment, then instalments tied to construction milestones, and a final payment on completion. It breaks a huge financial commitment into smaller, more digestible chunks. Investors don't have to tie up all their capital at once, which allows them to free up funds for other investments or ease the financial burden. It reduces the perceived risk because you are not required to pay the entire amount upfront. You are funding the construction as it happens, which can provide a more secure feeling.

The Appeal of New Homes

Off-plan properties feature the latest designs, the newest amenities, and the most up-to-date building standards. You get a property that hasn't been lived in, that's fresh and pristine. The desire for the latest and greatest is a strong human trait. People want what's modern, efficient, and aesthetically pleasing. An off-plan property promises just that, a blank canvas ready for a fresh start. It appeals to a sense of progress and luxury that is very much aligned with Dubai's brand.

Trust in the Brand and the Future

When investors buy off-plan in Dubai, they put their trust in a few things:

The Developer's Reputation: Major developers in Dubai have a proven track record of delivering projects on time and to the highest standards. Their names carry weight, which reduces the perceived risk. For instance, developers such as Emaar, Damac, and Meraas have a proven track record.

Dubai's Economic Stability: The government's consistent efforts to diversify the economy and attract foreign investment build confidence. People believe in the city's long-term vision. Dubai's GDP has demonstrated consistent growth, even amid global challenges, indicating a resilient economic environment.

The Resale Market: Investors believe that when their property is finally ready, there will be a strong demand for it, whether for rental income or resale at a higher price. Historically, Dubai's property market has shown appreciation over time. For example, in the first quarter of 2025, apartment rents in Dubai increased by approximately 11%, and villa rents by 9%. Past performance has a significant impact on investor expectations.

The Rational Side of the Wait

Psychology plays a huge role, but we can’t ignore the facts and figures. The "waiting years" part is directly tied to this.

Capital Appreciation

The main bet for off-plan buyers is capital appreciation. They anticipate that the property's value will rise by the time it is finished, so they purchase it today at a reduced cost. The idea is that the initial low price entry point and natural market growth over several years will lead to a substantial profit when they sell.

Rental Yields

The wait may be worthwhile if the rental yield is high. Off-plan property can generate rental income after completion. The large number of expatriates in Dubai is always on the lookout for a place to call home. Thus, there is a high demand in the rental market. Currently, average rental yields in well-established neighbourhoods range from 5% to 8%, or even higher for certain types of properties. For investors who prioritise income, it is a compelling offer.

Diversification and Long-Term Strategy

For many investors, buying off-plan in Dubai isn't their only investment. They may hold stocks, bonds, or other forms of real estate. Investing in Dubai's off-plan market is a way to diversify risk and tap into a rapidly growing market with high potential returns.

Conclusion

When you buy off-plan, delays can happen, market conditions can shift, and things don't always go exactly as planned. This is where that long wait time becomes a test of patience. But for many investors, the potential rewards outweigh these risks. They understand that patience is an active part of their investment strategy. If you can be patient, plan well, and trust the process, the years you wait for returns can help you reach your financial goals and build a stronger, more diverse investment portfolio. After all, some things are worth the wait.

At Betterhomes, we thrive in connecting you with the right opportunities that truly fit your goals. If you are considering investing in Dubai but aren't sure where to start, we are here to guide you. Contact us today.