Dubai’s real estate market had substantial growth in 2022, as sales transactions increased by 76.5%. With a startling 144% increase in performance, the emirate’s off-plan category stood out as a bright spot and contributed to the UAE’s overall real estate boom. The Fifa World Cup that was held in Qatar last year also significantly impacted Dubai’s off-plan growth. The event gave attendees, many of whom were high-net-worth individuals (HNWIs) passing through Dubai, a better knowledge of what the emirate has to offer and why it is so well-known worldwide. Off-plan developments continue to be long-term and lucrative investments due to the UAE’s ongoing media attention, and this growing interest in these unfinished properties can be ascribed to a number of market factors, including:
- The highest RoI
Purchasing off-plan enables investors to secure a property at the earliest time, and the lowest possible price, while providing a variety of choices to select the best units under development. Furthermore, the estimated 10% down payment is a cost-effective choice, especially when contrasted with the normal 20–25% cost associated with buying finished products.
- High yields from rentals
After development is finished, owners who rent out their units might profit from the UAE’s consistent flow of foreign residents. Even in Dubai’s emerging neighborhoods like Jumeirah Village and Al Furjan, which continue to be among the most alluring choices for high-quality cost-effective housing, landlords can expect a guaranteed yearly minimum net return of 5%.
- Installments for payments
Convenient payment options that investors and even end users can take advantage of are an additional factor contributing to the off-plan real estate market’s affordability. Installation plans can be divided into a 40–60 allocation, where the buyer pays 10% of the property cost at contract signing, the remaining 30% in payments over the course of the 18–month building period, and the remaining 60% at handover. As a result, the investor’s financial burden is reduced, which enables them to design rental agreements that are financially profitable for them and appealing to renters.
- Security and rules
A set of rules has been put in place by Dubai’s Real Estate Regulatory Authority (RERA) to safeguard purchasers from project delays and cancellations. A law passed in 2017 protects purchasers of off-the-plan real estate from developers who breach their contractual commitments. Due to the fact that payments are only made into regulated accounts, which developers can only access as they reach construction milestones, investors can acquire off-plan properties with complete confidence.
- Peace of Mind
The owner of an off-plan property who intends to live there someday can be confident that they will be the first to take advantage of their purchase. Their unit will be handed to them brand new with a flaws Liability Period of one year, much like the development itself, ensuring that the developer has responsibility to address any flaws that arise. Additionally, developers and contractors are obligated to protect the development’s structure for a period of ten years.
Bizmaker Real estate is a Process-driven Real-estate broking company providing end-to-end holistic real estate solutions in UAE. Bizmaker works closely with its clients and focuses on providing maximum sustainable benefits for them. The team has expertise in residential, commercial, and off-plan projects to, assist prospective investors, with holistic solutions.
