buying off-plan real estate

Pros and cons of buying off-plan real estate

Is the purchase of a property in a building under construction worth several years of waiting? Is it safe to trust your money to the developer when the project’s construction is underway? Can you make money from it? All these questions are answered by Emirates.Estate.

Return on investment on under-construction projects

To buy real estate in the UAE means to become a sponsor of your own future. The Emirates and especially Dubai open up unlimited opportunities for doing business, including off-plan real estate. One of these investment benefits is financial gain. The earlier the construction phase, the less the apartment costs. At the same time, after the work is completed you receive housing, which can be sold several times more expensive.

Reasons for off-plan profitability:

  • Low cost relative to the turnkey object
  • A wide range of offers from different developers
  • Increased demand for rental and purchase
  • High profitability and quick return on investment – up to 12% per year, depending on the characteristics of a property

Pros of buying an apartment in a building under construction

The main advantages of the off-plan real estate purchase in the UAE are as follows:

  • Rapidness of the transaction conclusion is up to 14 days
  • The contract is concluded directly with the developer
  • An individual payment scheduling
  • Comprehensive support and protection of the buyer’s interests at the legislative level
  • Minimum risks
  • Profitability
  • Return on investment within several years
  • No taxes on rental income
  • Can be bought online
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Cons of investing in off-plan apartments

It is worth noting that the real estate sector in the UAE is strictly regulated by the government. Each developer, owner, and agent undergo compulsory certification, without which it is impossible to work on the market. Consequently, the risks of being deceived are minimized here. However, there are still drawbacks to this type of transaction.

Possible cons:

  • Falling prices for the facility apartments after the construction completion. That is, the cost of the completed housing may be lower than that which was at the time of construction. In other words, such an apartment will not pay off quickly.
  • Construction freezing or canceling. In Dubai this practice is extremely rare and occurs only for strong reasons. Most often, the construction is not canceled, the project is just released to another developer, after which the work is guaranteed to be completed.

Important! Investors and purchasers of Arab housing who are planning to buy an off-plan apartment should understand that it will not be possible to obtain a resident visa for it. Until the construction works are completed, the purchaser is not considered a full-fledged owner, and that means that they will have to wait for the completion and the handover.

Purchase of UAE real estate

Get professional advice on the purchase of the real estate in the UAE from experienced staff of Emirates.Estate. Only the best offers from tried and trusted developers at attractive prices are waiting for you.