According to a recent report, Dubai’s off-plan property market has reached a record high, with 25,466 property transactions worth over AED52 billion ($14.16 billion) carried out in 2024.
This report highlights the popularity of off-plan properties in Dubai, an option that gives both local and foreign investors the opportunity to make the most of the city’s ongoing growth.
If you’re interested in investing in the Dubai real estate market, you may also want to consider choosing off-plan properties. With this option, you can reap several remarkable benefits that make them the perfect addition to your investment portfolio and further secure your financial future.
Advantages of off-plan investment in Dubai
Below are the top reasons to consider investing in off-plan property in Dubai:
1. Affordable prices
Off-plan projects are more affordable than ready properties. Most developers offer lower prices, usually at a fraction of their future market value, to entice more buyers.
Moreover, developers offer attractive, flexible payment schemes that make it hard to pass up on these investment options. They may require investors to pay only 50 percent as a down payment and the remaining balance upon the project’s completion.
Some companies also have monthly payment plans, which make it easier for buyers to include the additional expense in their budget.
If you want to own property without worrying about paying substantial upfront and monthly fees, off-plan projects are your best option.
2. More choices
Off-plan projects in Dubai are spread across the city, giving you more properties to choose from. Some of the most popular under construction projects can be found in areas such as Downtown Dubai, Dubai Hills, Arabian Ranches, Palm Jumeirah, Dubai Creek Harbour and Bluewater Island.
Whether you plan to live in the off-plan property or turn it into a long-term or short-term rental, its strategic location offers another set of benefits. These areas are near Dubai’s main business districts, most reputable schools, and popular attractions, making living here more convenient.
Additionally, you can choose from among apartments, villas, townhouses, studio type, and one-to-three-bedroom properties. With these options, you can easily find a home that meets your budget and needs.
3. Potentially high capital appreciation
Most off-plan properties in Dubai usually increase in market value, which means you can earn higher investment income when you decide to sell the property.
These properties usually start appreciating on handover. However, you can sell the property while it’s still under construction if the need arises. But if you want higher capital appreciation, consider doing this during the turnover.
Keep in mind that Dubai’s real estate market is stable and continuously growing. Because of this, you’re likely to get a high return on investment (ROI) even if you sell the property in the distant future.
4. High rental yields
If you want to invest in a rental property, choosing an off-plan project can be a smart move. You can pursue this plan even if you don’t have a huge budget for this investment since the initial outlay and monthly fees are lower.
Dubai’s constantly growing population and strong tourism industry mean there’s always someone looking to rent a home long-term or for a short stay. This demand helps keep rental prices up, which assures higher returns and gives you a steady, reliable income stream.
Since you’re buying the property at a lower cost initially, the difference between what you pay and the rent you’ll collect can be more profitable.
5. More modern amenities
Many real estate projects in Dubai boast amenities that elevate resident lifestyles.
These can make it easier for residents to work out, relax, and rejuvenate. These include fully equipped gyms, indoor or outdoor swimming pool, parks or green spaces, and onsite spas.
Some communities also have running and cycling tracks, giving residents additional places to work out.
Other amenities such as clubhouses, game rooms, onsite cafes and restaurants allow residents to relax and socialize without leaving the building or neighborhood.
High-end off-plan properties also offer services, such as concierge, security, and door attendant facilities, to give residents additional assistance, protection, and peace of mind.
6. Easy customization
When buying a property that’s still under construction, you can have a say on the final design. You can choose the layout, select finishes, and tweak some components to ensure the apartment or villa suits your taste and requirements, and have a home that feels more personal.
Since you can select the floor plan, flooring material, and kitchen and bathroom fixtures, you can also increase your property’s value. This, in turn, can make it more attractive for your potential tenants or buyers interested in a well-thought-out space.
Ready properties do not offer this advantage since customizing or changing the permanent fixtures can be more expensive, work-intensive and time-consuming.
7. Buyer protection
Real estate investments often come with risks, but the government of Dubai has laws in place to protect investors. The Dubai Real Estate Regulatory Authority (RERA) and the Dubai Land Department (DLD) require buyers to conduct transactions for payments only at banks approved by DLD. Developers can only have access to these funds when the project reaches certain milestones.
Reputable real estate developers in Dubai are also required to provide financial guarantees to demonstrate their capability to complete their projects and boost their credibility.
Investing in your first off-plan property in Dubai
If you’re buying your first off-plan property in Dubai, conduct due diligence from the start. Research the area’s population growth estimates and real estate projects to ensure you reap the financial benefits of owning a home here.
Check the developer’s track record, taking note of the projects they completed and the average timeframe they have for handover. Read reviews about their works and customer service quality as well.
If possible, visit the project site and look into its completion timeline. While at the site, ask for copies of their business and construction permits to verify the project’s legitimacy.
Whether you’re in Dubai or not, work with trusted real estate agents when you want to invest in off-plan property. With their help, you can experience a smooth and successful investment journey from start to end.
Natalia Borovik is the CEO of Bonum Realty, a real estate agency specializing in the UAE market.
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