Off-plan vs. ready properties in Dubai
Investing off-plan means buying a property before it is actually built – and, when it is built – rather than living in it, the investor will either sell or hold the property and rent it out. Off-plan property may also be desirable where an area is in high demand, and purchasers want to secure a future property. The seeming risks associated with Off-plan properties are notably the risk of delays or cancellations. In Dubai, these risks are minimized through regulations imposed by the Real Estate Regulatory Agency (RERA) and the Dubai Land Department (DLD) as well as the use of escrow accounts. Developers are required to deposit 20 percent of the project costs as a bank guarantee, and the authorities have a responsibility to ensure that the developer has sufficient funds and resources to complete the project.
Ready Properties are the ones that are ready for immediate use and handover. The main advantage of buying ready property is that you can physically see the property and get the right feeling before your potential purchase. However, the investment selection between off-plan and ready properties depends on considering the current market situation and outlook. This will play a key factor in short-term and long-term benefits, and the expected returns.
The report below depicts comparisons between off-plan and ready properties from 2012-2020.
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