Whenever you are planning to get a property through the primary market you will be exposed to two options, either ready or off-plan but at the end of the day, you still gain the experience of choosing the best unit, being the first owner and getting it directly from the developer.
One might wonder why to buy from the primary market. Dubai’s Real Estate Market contains multiple developers of which different developers will give you different offers, from a payment plan to registration fees waiver, service charge waiver or might even offer you furnished properties. And the more reputable the developer is, the more luxurious the experience becomes.
How does the experience differ from an investor to an end-user?
As an investor, you look at how much are you putting down versus how much you’re gaining. You need to think about the competition you might face with other property owners, what makes your unit so special? Getting a unit in a prime location, from a boutique developer, and especially with a payment plan, raises your chances of a return on your investment.
When you get a unit that is in a building which isn’t replicated, and a layout that isn’t widely spread gives you the edge with resale or renting it out. Whomever wants to get that unit be it on rent or buying it, might be targeting that unit specifically where it doesn’t have competition against it, thus putting you more in control of the value.
If your unit has the advantage of a post-handover payment plan, and has been handed over, the property has appreciated overtime during the construction period. Hence, when planning to sell it, you already have gained a good return before even finalizing the payments.
As an end-user who is looking to live in the property, think about how much you are going to save when getting it during the construction stage instead of when it is ready and the people who already bought it before are always looking forward to selling at a premium.
Instead of paying rent for a long period, put down the rent towards a property with a payment plan, and you can benefit with financing it when it is ready if needed. You’ll still be paying installments as rental fees, but you gained an asset which you can sell and gain a return on it in case you decide to exit the plan.
Future of off-plan in Dubai?
Dubai was flooded with the number of visitors due to the world EXPO event, which was very successful and achieved its goals. Visitors experienced the lifestyle of Dubai of which a lot are enticed to have an asset in Dubai, whether they plan to move in here in the future or just keep it as a tool to gain a return, the idea of owning a property with a payment plan is more than attractive for these people. Hence the primary market and especially off-plan will remain active and healthy for a while and will see an appreciation in prices as certain options are limited in the market.