Real estate can be an excellent long-term investment and purchasing off-plan allows homebuyers and investors to secure favorable financing terms from lenders while taking advantage of price appreciation once it is complete and available for sale or lease.
Dubai’s real estate market is flourishing amid infrastructure investment, business expansion and an expanding population, leading to rising property prices expected in 2025. Potential buyers should be mindful of both risks and rewards associated with off-the-plan sales before purchasing such properties.
Off-plan properties offer many benefits to homebuyers and investors in an increasing property market such as the UAE. Not only can investors take advantage of attractive financing terms offered through off-the-plan purchases, they may also help avoid upfront marketing expenses that would otherwise incur high costs for prospective buyers. Plus, buyers have an opportunity to select their unit and customize its interior according to their own personal tastes and needs.
Whitcombe believes the most crucial consideration for prospective homebuyers and investors should be a developer’s reputation and track record. He suggests researching their previous projects to gauge on time completions within budget; another factor worth taking into account should be how consistent they are in providing high quality developments.
Finally, buyers should understand their available payment plans. For instance, some developers offer a 1% per month payment plan over 80 months that makes meeting the purchase price easier. Furthermore, developers are required to keep buyers updated on progress and handover timelines to ensure the development meets property specifications agreed upon between both parties and any delays can have serious financial repercussions for buyers.