Why Off-plan Properties Are Becoming Popular
Dubai’s real estate landscape has been constantly evolving, with off-plan properties emerging as a notable trend in recent years. This dynamic market has attracted investors and homebuyers alike, seeking opportunities in this bustling cosmopolitan city. In this blog, before you buy off plan properties in Dubai, let’s check why these properties are popular.
1. Attractive Payment Plans
A major factor contributing to the rising popularity of off-plan properties in Dubai is the availability of appealing payment plans.
Off-plan properties often offer advantageous payment schemes. As a benefit of customization choices, and entry to exclusive developments, you can easily alleviate financial stress. These payment plans commonly include 80/20, 60/40, 70/30 structures, with the highly preferred 50/50 post-handover payment scheme. Moreover, purchasers in Dubai can secure a unit with a minimal down payment, typically as low as 5% of the property’s total value.
So, whether you are a first-time buyer or have limited initial capital, you can enjoy high accessibility with these off-plan properties.
2. Potential for Capital Appreciation
Investing in off-plan properties in Dubai presents an opportunity for capital appreciation. As the city continues to grow and develop, property values have shown a consistent upward trend over the years.
Transactions and Total Value Trend
(Source: Property Monitor)
From the above table, we can say that transactions and total value trend of off-plan properties in Dubai have increased from 2021 to 2023. So, if you buy off plan properties in Dubai before it is completed, you can benefit from the potential increase in value as the development progresses and reaches completion. This can result in significant returns on investment over time.
3. Modern Amenities and Facilities
Off-plan properties in Dubai often come with a host of modern amenities and facilities designed to enhance residents’ quality of life. From state-of-the-art gyms and swimming pools to landscaped gardens and recreational areas, developers spare no expense in offering a luxurious lifestyle experience. These amenities add value to the property and contribute to its attractiveness to investors and buyers.
4. Customization and Personalization
Buying off-plan allows buyers to customize and personalize their properties according to their preferences and tastes. From choosing finishes and fixtures to layout modifications, buyers have the flexibility to tailor their homes to suit their lifestyle and aesthetic preferences. This level of customization adds a personal touch to the property and enhances its appeal to prospective buyers.
5. Potential Rental Yields
Off-plan properties in Dubai also offer the potential for attractive rental yields for investors. With a growing population and increasing demand for rental properties, investors can capitalize on the rental market by leasing out their properties upon completion.
In the first quarter of 2024, Dubai’s property market saw a significant increase in off-plan property transactions, with sales volumes steadily rising each month. The number of off-plan units sold grew from 5,881 in January to 7,601 in March. Similarly, sales of ready properties also experienced an increase, from 3,961 units in January to 4,421 units in March.
The high demand for quality rental accommodation in Dubai ensures a steady stream of rental income for investors. So, if buy off plan properties in Dubai, it can be a lucrative investment option.
6. Developer Reputation and Trust
Dubai’s real estate market is characterized by reputable developers known for their commitment to quality and timely delivery. Investors and buyers are drawn to off-plan properties by the reputation and track record of developers, ensuring confidence in their investment. However, are you facing issues to decide the developer for investment? Then, you can check below developer comparison as per their sales value-
| Developers | Total Sales Value (AED) |
| Select Group | Below 5B |
| Nakheel Properties | Between 5B to 10 B |
| Meydan Group | Around 11B |
| Emaar Properties | Above 15B |
(Source: Property Monitor)
Established developers adhere to stringent quality standards and regulations, providing buyers with peace of mind and assurance regarding their investment.
7. Choice of Prime Locations and Projects
Dubai boasts a diverse range of off-plan projects in prime locations across the city. From waterfront developments to luxury skyscrapers, you can have ample choices to suit your preferences and investment objectives.
Whether seeking a bustling urban lifestyle or a serene waterfront retreat, there is an off-plan property to cater to every taste and lifestyle. So, if you buy off plan properties in Dubai, let’s check the top off-plan properties.
Explore the Top Off-Plan Properties in Dubai: Luxury Living and Iconic Communities
- Emaar Properties: Renowned for iconic developments like Burj Khalifa and Dubai Mall, Emaar offers luxurious off-plan properties with innovative designs and world-class amenities.
- Damac Properties: Known for its upscale projects, Damac offers off-plan properties in prestigious locations like Damac Hills, featuring elegant residences and exceptional lifestyle amenities.
- Nakheel Properties: A developer of iconic waterfront projects, Nakheel offers off-plan properties in Dubai Creek Harbour and Palm Jumeirah, known for their breathtaking views and vibrant communities.
- Sobha Group: With a focus on quality craftsmanship, Sobha Group offers off-plan properties in upscale communities like Sobha Hartland, featuring spacious residences and lush greenery.
- Damac Hills: A prestigious golf community by Damac, offering off-plan villas and apartments with golf course views and luxurious amenities.
- Arabian Ranches: A sought-after residential community by Emaar, offering off-plan villas and townhouses surrounded by landscaped parks and family-friendly amenities.
- Downtown Dubai: Home to iconic landmarks like Burj Khalifa and Dubai Fountain, Downtown Dubai offers off-plan apartments with stunning views of the city skyline and access to world-class shopping and entertainment.
- Dubai Hills Estate: A master-planned community by Emaar, offering off-plan villas and apartments surrounded by lush greenery and a championship golf course.
- Blue Water Island: A vibrant waterfront destination, offering off-plan residences with stunning views of the Arabian Gulf and access to luxury hotels, retail, and entertainment options.
- Dubai Creek Harbour: A waterfront community by Emaar, offering off-plan apartments with panoramic views of Dubai Creek and a vibrant lifestyle.
- Palm Jumeirah: A world-renowned island destination, offering off-plan villas and apartments with private beach access and unparalleled luxury living.
However, have you thought what about the ROI measurement after buying off-plan property? Then, check this below.
How Can You Measure ROI for Off-plan Properties in Dubai
Before you buy off plan properties in Dubai, you need to know how you can measure ROI. For instance, if you decide to lease the property for AED 80k annually for another five years, you’ll generate an additional AED 400k. This would help offset part of the AED 600k investment, resulting in a remaining cost of AED 200k. Consequently, the approximate ROI would be around 11% to 12%.
Final thoughts
The rising popularity of off-plan properties in Dubai reflects the city’s dynamic real estate market and the attractive opportunities it offers to investors and homebuyers. With flexible payment plans, potential for capital appreciation, choice of prime locations, modern amenities, customization options, rental yields, and trusted developers, off-plan properties present a compelling investment proposition. As Dubai continues to evolve and grow, off-plan properties remain a sought-after investment option for those looking to capitalize on the city’s thriving real estate market. Are you planning to buy off plan properties in Dubai? Then you can contact White Bricks Real Estate. From choosing the reputable developer to investment risks, we can guide you in every aspect.
