When looking into buying off-plan properties, you are sure to run across stories about investors who are more than satisfied with their purchase and were able to gain lucrative profits. Because all kinds of investments come with risks and benefits, the key to success is to find the best real estate deals as well as learn the correct ways to protect yourself from potential risks and nurture this investment.
Buying off-plan refers to committing to the purchase of property (either from a developer or first owner) before it is completely built. The apartment, house, commercial space, or villa has not yet been constructed, or it is on its way to being finished.
Benefits
The main benefit of buying off-plan properties is that you will get the lowest possible purchase price. You can also enjoy lower upfront costs, with some developers only requiring a 5-10 percent down payment. A mortgage payments calculator can provide you with the numbers you’ll want to consider before making a decision.
Another benefit is that you’ll get to choose the best apartments in a specific development, which plays a role in increasing the possibilities of gaining high profits later. If the market has performed well and is projected to maintain such, you can put the property up for sale even before it is completed to earn considerable profits.
Furthermore, you can personalize some items in the unit if you choose to live in it. You can select the kind of flooring, fixtures, lighting, and appliances to be included in your property. With villas and individual homes, you can enjoy options in landscaping, too. But with apartments, customization may be limited or at the discretion of the developer.
Possible Risks and How to Protect Yourself
As with any other investment, buying off plan comes with potential risks. These include delays in the construction and changes in market conditions. Knowing how to protect your interest and make sure that everything goes well with your purchase is crucial.
Though there is little you can do about the property prices changes, you can do more to avoid delayed completion time. For instance, you must do your research on the developer’s credibility and track record. Most importantly, get a well-defined contract offering the security and protection you need. The agreement must state that the final purchase will happen once the property is complete and satisfactory as promised and defined in architectural drawings.
4 Best Areas with Off Plan Properties in Dubai
With plenty of off plan properties in Dubai, choosing where to invest can be challenging. To help you make the right choice, here are some of the best areas to purchase Dubai off plan properties:
AKOYA OXYGEN
AKOYA Oxygen is developed by DAMAC Properties. It is one of the most searched-for communities when it comes to purchasing Dubai off plan properties in 2020.
Known for being a self-sufficient neighbourhood since it has its own networks of roads, AKOYA Oxygen offers some of the best options if you are looking for well-integrated living at an affordable cost. The community boasts of its own retail, lifestyle, and recreational spaces, as well as restaurants and cafes catering to different taste buds.
AKOYA’s commitment to sustainability and greenery makes it one of the best residential areas in the city. Its lush landscapes will make you feel like you are miles away from the city’s skyscrapers. The AKOYA villas for sale are also constructed with energy-efficient materials and processes to boost sustainability and reduce carbon footprint. In fact, it has received a spike in move-in requests even in the midst of a global pandemic in 2020.
Downtown Dubai
Downtown Dubai is one of the city’s iconic addresses because apartments here have a spectacular view of the Dubai Fountains or the Burj Khalifa. Besides move-in ready properties, the area is also a popular place for off plan apartments offering upscale living, unique amenities, and leisure destinations.
Business Bay
Located in the heart of the city, Business Bay is considered the embodiment of urban living. It is the city’s centre for business activities, making it one of the most sought-after living areas for working professionals. The lifestyle in this place is comparable to those in the cosmopolitan cities of London or Manhattan. It is lively, fast-paced, and full of skyscrapers that feature the city’s stunning views. Some off plan properties are even situated across the Dubai Canal, offering remarkable waterfront views.
The abundance of cafes and restaurants also make this an excellent place for a lifestyle destination. Essential amenities like pharmacies, gyms, and spas are also within the vicinity. More importantly, public transport is easily accessible.
The DAMAC Zada Residences is one of the most sought-after properties in Business Bay. You can buy one of many one-bedroom apartments for a starting price of AED 699,000. The payment plan that can last for up to five years makes this property a worthwhile investment.
Palm Jumeirah
This iconic, man-made island paradise offers luxurious beachfront properties. Palm Jumeirah is known for its spectacular leisure options. You can find plenty of world-class amenities, such as luxury private dining establishments and bars offering a lively nightlife scene. With its continuous development, this area promises more prestigious offers to its residents.
The Purchase Process
The process of buying off plan properties is relatively straightforward.
Step 1: The developer will ask for a developer’s deposit or reservation fee. This serves as a commitment, so the developer will hold the property while your solicitor is working through the contracts.
Step 2: Your solicitor will go through a legal process, including local searches and checking the contract. Once satisfied after reviewing all the essential documents provided by the developer, both parties will exchange a contract on an approved amount. You need to pay a deposit amounting to about 10-50% of the purchase price minus the reservation fee you’ve given earlier. At this point, you are already legally bound to purchase the property. Otherwise, your deposit will be forfeited.
Step 3: In the following months, you will receive regular updates about the construction. You may even be invited to visit the property so you can personally check the progress, which is crucial if you want some sort of personalisation in your property.
Step 4: Once the property is complete, the developer will notify you and give you a timeframe to finalize the purchase.
Step 5: You have to pay your remaining balance, and once that is done, the property is all yours.
Depending on the property you are targeting and its location, buying off plan properties can be a lucrative investment. The key is to carry out due diligence and focus on the developer. Investing a considerable amount of time to do research on new residential projects in Dubai reassures you that you’ll find the most suitable property, whether you choose to live in it or sell it later.
© The Arabian Post
