Off plan - solid investment

Off plan, a solid investment provided you pick the right developer and have the right agent to help you.

The exuberant real estate industry of Dubai is a complete roller coaster ride when it comes to off plan investments. At times where it has offered more than 25% of appreciation in the capital value, the other times it has also brought giant investors on ground through decrease in prices and collapse. Investing in off plan especially in Dubai has great profits to offer, however with great profitability there are usually greater risks involved as well. When buying off plan in Dubai, it is important to understand the parameters that come into play and the risks involved in the investment so that at the planning and deciding stage these risks can be mitigated as much as they can, to ensure maximum profitability.  To understand the basic structure of Dubai off plan market, the industry works on a dominos effect and the value of property varies upon the hype, rumors, news and the legislations. Following tips for buying off plan in Dubai will help you understand the factors that you should look for when buying off plan in Dubai and pick out the right development from the dominos effect.


  1. Purpose of Investment

The investment scenario in off plan completely works around the purpose of investment. If you are investing to rent out the apartment, hotel apartment or commercial space then you need to look at the rent yields projections, demand of the community, facilities and amenities offered within the development and by the community, and most importantly capital appreciation of property in terms of price per square feet so that when you are selling it out it would generate good profits for you.

When buying to live-in, the rental yield and capital appreciation becomes secondary whereas nearby location, entry & exits, schools, groceries, workplace, worship places, play area, parking, chiller charges, size of the rooms, size of balcony becomes primary elements to look for.


  1. Developer Profile

Second element is the developer’s profile, if the developer has developed previously it is better to go through their previously completely project because about 90% of the times the quality of each developer remains consistent throughout its development regardless of the place. The developers are categorized into different tiers where tier 1 developers being Emaar, Dubai Properties Group, Select Group and Meraas are known for their superior quality finishing and on time completion of projects. Tier 2 developers are Nakheel, Damac and similar are not known for exquisite quality but most of their projects are completed on time. Furthermore there are various others tiers of developers as well which can be researched for their previous developments.


  1. Agents Authorized

Many people would not agree about how the involvement of the agents would affect buying off plan in Dubai; however on the practical grounds agents make a big difference when it comes to selling. The right agent would give you the exact information about the development and would commit the exact quality and time line of the development, so that you are sure what you will get at the end of the day. However there are many agents who would exaggerate the development as a dream home in the perfect world, and at the time of handover you will realize that this was not what you were expecting on the first instance. To identify a good agent from the ordinary it is important to analyze what and how he or she talks about the development. A good agent would start from the features of the actual development then discuss location of the project, pricing structure (price per square feet) and then the payment plan after which he will let you decide the unit you choose and would be happy to conduct the viewing of the off plan property as well. Whereas, an ordinary sales representative would push specific unit on to you discussing that you will get this much of rental yield and would talk about the surrounding more rather than the actual development.

So, when next time you decide in buying off plan in Dubai, remember the tips for buying off plan in Dubai resides in matching the development according to your requirements, then researching the profile of the developer and finally choosing the right agent who would assist till the end.


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