Ask any top real estate company or any successful real estate agent in Dubai and they will tell you how they’ve witnessed firsthand the transformation of Dubai property investment. After all, the skyline of Dubai, a vibrant city, has been a huge part of that massive evolution.
This begs the question – what should I choose, off-plan or ready-to-move properties?
The debate has become as old as Dubai’s modern real estate boom. Each option gives you its own unique ups, as well as downs. The ups, in particular, have made a stronger impact since the Dubai real estate market makes over 80,000 transactions every single year.
So no matter which perspective you take, it looks like a bustling marketplace. That said, precisely because it’s a bustling marketplace, you have every reason to be doubtful or puzzled when making a decision between off-plan and ready-to-move.
Nonetheless, this is YOUR dream home. Or it could be your next big investment. Therefore, it’s only logical to want to figure out where and how you would fit into such a dynamic landscape. So let’s dive into some intricate details from the point of view of an industry expert!
Off-Plan Properties Dubai: Game Plan for Future Living!
Off-plan means buying the property from the developer directly. This is done either before or during the construction phase. In many cases in Dubai, these types of properties are purchased while the construction is in process.
Typically, potential buyers want to view the floor plans and all the architectural renderings to come to a well-informed decision. In such scenarios, you, as a buyer, can make the most of the lower initial prices. What’s also very beneficial here – flexible payment plans!
Off-plan properties are popular in Dubai, all thanks to the super-fast, super-reliable development of new projects. Once the construction hits completion, the potential value of this same property increases (beyond belief sometimes).
Futuristic projects in Dubai rise more rapidly than the temperatures of Dubai and off-plan properties are almost always accompanied by tempting, genuine incentives.
Quick Pros:
- Off-plan properties are priced lower: The cost here is lower in comparison to ready-to-move homes. So if you’re an early bird in Dubai’s vast property market, most likely you’ll reap the benefits of some of the best deals. One has to think about the significant capital appreciation after the completion of the project!
- Off-plan properties offer payment flexibility: There’s no denying that Dubai developers make it a point to provide attractive payment plans. More often than not, these include a small down payment first, and then come the rest of the payable milestones during the construction phase. This better aligns with your cash flow as an investor and, thus feels less burdensome.
- Off-plan properties can be customized: You can certainly call it a home of your own when YOU get to choose the finishes and layouts of YOUR property. The space is tailored as per your tastes and preferences, which seems like a 100% game-changing scheme when also considered from a “resale” market perspective.
Quick Cons:
- Project delays: This particular setback is a tad bit difficult to overlook on the flip side of things. Construction timelines are usually unreliable, thus they can stretch (and sometimes beyond patience). However, when it comes to the real estate segment, patience is of utmost importance indeed.
- Market fluctuations: By the time you get your keys, will the property value soar or sour? The latter is a risk you’re bound to take. But you can counteract or neutralize this gamble by understanding the current, popular market trends of Dubai.
Ready-to-Move Homes Dubai: Unbelievable, Tangible Reality!
As the term suggests, these properties you can move into immediately. Keys in hand right away!
There’s something very gratifying about instant occupancy. With ready-to-move properties, you can take an actual tour of the property you want to buy. This means seeing the exact finishes, getting to know the precise layouts, etc.
No need to wait for the construction process to reach its endpoint. Move in immediately or start receiving your rental income immediately!
Quick Pros:
- You get what you see with ready-to-move properties: No hidden or unfavorable surprises are in store for you in the case of ready-to-move. This includes the property’s finish, amenities, and neighborhood. Everything is experienced as is firsthand!
- You get immediate rental returns with ready-to-move properties: Your just-bought space can be rented out at once. This means you begin to generate income from day one. Given Dubai’s bustling and glamorous market, it’s an appealing proposition.
- You don’t run the risk of delays with ready-to-move properties: What if some part of the construction phase gets pushed back? This is something you don’t have to worry about when you pick ready-to-move. A big relief if you’re on a tight schedule or want to relocate to Dubai (quickly or otherwise)!
Quick Cons:
- Higher cost: There’s a catch to all that immediacy and tangibility. Typically, ready properties have attached to them a steeper price tag, which might not fit into your budget as an investor.
- Limited room for appreciation: Off-plan properties experience an initial surge in value once completed. So when you choose its already completed ready-to-move counterpart, you miss out on that golden opportunity.
Off-Plan vs Ready-to-Move Properties: Final Verdict
Ultimately, buying property in Dubai, be it off-plan or ready-to-move, revolves around your lifestyle preferences and investment strategy. For instance, if a long-term investment is what you have in mind, then off-plan properties are perfect. The same applies to those who’d rather prefer building a home from the ground up, literally.
On the other hand, there’s the immediate possession and quick rental returns of ready-to-move properties.
Both paths lead to fruitful outcomes in the ever-dynamic Dubai housing market. But, as a city that’s become so notorious for its ambitious projects, expatriate-friendly policies, etc., it’s necessary to understand the nuances of each option.
In the end, what that informed decision will be must align with your personal and financial aspirations.