Over the years, Dubai has become a popular vacation destination. However, there’s another reason why the emirate welcomes a huge number of visitors every year. It is the lucrative investment opportunities it has in the real estate sector.
Transparency, high ROI, convenience, low tax and abundant options – these are some of the reasons why Dubai has become a haven for investors. Whether you are looking for ready properties to grab or land to construct a new residential or commercial unit, you can find options in almost every community. However, bear in mind that some communities are leasehold. Foreigners can’t become the owner of land in those localities. They can just lease the property for the period between 10 and 99 years.
Other than that, there’s also an option to buy off-plan property in Dubai. As a matter of fact, the popularity of off-plan properties has been growing at a rapid pace in this emirate. These properties, as compared to ready units, are inexpensive and offer a higher ROI. Having said that, there are some risks and dangers also associated with investing in off-plan property, particularly for beginners. This is why we have compiled expert advice from professionals that can help you to make an informed decision. Read on to about them:
Thorough Research on Market Trends
First things first, you need to know about the market condition when buying off-plan property. Although it is important to do market research for every kind of property but with off-plan projects, it becomes even more important. This is due to the fact that off-plan units are still under construction. They will be handed over on a later date, which can be months or years away. So, you not only need to keep the current market conditions into consideration but future trends as well.
Thorough Research on the Developer
Apart from the market trends, you also need to do thorough research on the developer. Check their previous work history. Also, find information about whether they met their project completion deadlines or not. And if there were any delays. In case, there were, for how long the property owners had to wait for the completion of the projects. You can find this information easily online.
Knowing about their reputation will help you to make an informed decision.
Find the Best Location
Whether it is a ready property or an off-plan project, location holds paramount importance. It can certainly be termed as a deal-breaker. If the project is located far off from the city, it wouldn’t be a wise idea to invest in it. The reason is that it will take a long time for the area to develop. So, if you are eyeing quick returns, the decision of investing in such property will backfire.
The crux here is to pay extra importance to the location. Again, you will need to do some research and make a list of areas that are popular in terms of real estate transactions. Select the one where properties are available within your budget range and finalise an off-plan property for sale in that area.
Hire an Agent
Do not think of hiring an agent as an additional expense. On the contrary, they can help to save your expenses. Firstly, they have a better idea of popular areas in Dubai and the price trends. So, they can guide you better in deciding the right price you can pitch to the developer when negotiating property rates with them.
Secondly, a professional real estate agent can make the entire process rather easy for you. You wouldn’t have to visit different online property portals to find listings for off-plan properties in different areas in Dubai as they will do the needful for you. Moreover, they can also assist you with the buying process once you have finalised a unit.
Never Rush through the Process
Although Dubai has strict laws, there are still chances of getting scammed or becoming a victim of fraud, particularly, if you are new in the industry. This is why real estate experts recommend to take one step at a time and never rush through the process. Even if you think you have found the best opportunity, do not make a hasty decision. It can land you in hot waters in the later stages.
Carefully Evaluate Your Options
There are different options for buyers of off-plan properties in Dubai. For example, you can sort through offers for:
- Off-plan apartments for sale
- Off-plan townhouses for sale
- The Off-plan villas for sale
Carefully evaluate each option, consider your budget and make the decision accordingly.
To sum it up, the decision to make an investment in Dubai real estate is an achievement in itself. However, the real test starts after you have decided to take the plunge. For off-plan properties, the risk is even higher since they are still in the construction phase and delays can result in financial troubles. All you can do, to secure your investment, is to follow expert advice and invest wisely.