Exposure to diverse cultures, the opportunity for travel, and the financial benefits of working as an expatriate in Dubai is alluring for many individuals. Another financial benefit open to expatriates is the opportunity of buying an off-plan home in Dubai. Today, Dubai is a thriving investment epicentrewith a diverse range of options for those looking at buying an off-plan home in Dubai.
An Off-Plan Investment Wonderland
Dubai is home to an amazing range of off-plan property developments. These developments are designed to appeal to a wide range of lifestyles and budgets. Aside from the breadth of architectural styles and range of locations, there are five key benefits of buying an off-plan home in Dubai for expats:
- Range Of Price Bands And Flexible Payment Plans
Accessibility is one of the primary benefits of buying an off-plan property in Dubai. Incomplete development projects are usually being offered at significant discounts to similar completed properties.
Complementing these lower entry prices are attractive and flexible payment plans which often back-load the payment schedule. This gives buyers more time to save for their investment or to structure their financing arrangements.
Seasoned investors and first-time investors alike, benefit from lower prices and the greater financial flexibility represented by off-plan development options.
With numerous projects available and more being announced regularly, developers are aggressively competing on price and payment structures. For instance, paying 20 percent upfront and 80 percent upon completion. These payment structures give off-plan property buyers a significant advantage.
- Opportunity For Capital Gains
Dubai continues to be one of the world’s fastest-growing economies. With demand underpinned by sustained economic growth, real estate investments are promising in terms of their potential return on investment (ROI) for expatriates.
Similarly, the trend is for the value of a property to increase once it’s completed. This is irrespective of the “locked-in” purchase price agreed with investors prior to construction.
So as an expatriate, you could enjoy a rise in the market value of your property while paying off. This is because you’re paying off your investment in trenches as per the developer’s payment plan. This gives you options and substantial potential upside should you decide to sell before or after completion.
As with most real estate markets, locality and the popularity of neighbourhood are the key factors. These factors play a role in determining your developments market value appreciation trajectory.
- Attractive Rental Yields
Rental income potential is always one of the key drivers for property investment in Dubai. The continual influx of expats into the city, a trend, shows no signs of abating. As such, Dubai will always enjoy demand for housing options. And property ROIs tend to remain stable despite fluctuating property prices across the emirate.
When you are buying an off-plan home in Dubai, you have the option of earning an attractive rental income from your real estate investment if you choose not to be an owner-occupier. Renting a property provides a level of financial security for the expatriate property investor.
- Buyer Protection Laws In The Dubai
While there are always risks attached to purchasing an off-plan property, the regulators such as RERA (Real Estate Regulatory Authority) and Dubai Land Department (DLD) have adopted a range of measures. These measures aim to reduce the amount of volatility and speculation in Dubai’s property market.
These measures provide expatriate property buyers with added protection against delays, cancellations, or instances of fraud. One recently introduced rule is that buyers must make payments for off-plan property purchases at DLD-approved banks.
Moreover, developers can only access funds when the project reaches a specified stage of completion. A project consultant must now verify if construction is progressing satisfactorily prior to a developer having access to funds.
Another law passed recently stipulates developers must provide 20 percent of the construction funds in the form of bank guarantee together with a 10 percent guarantee performance bond by the contractor.
These measures help to reinforce buyers’ confidence in the off-plan property market. This makes for a more stable investment climate as well as provides greater certainty that under normal circumstances, properties will be completed and delivered.
- Host Of Off-Plan Development Options In Dubai
Underpinning the long-term stability and health of the Dubai off-plan property sector is the range of development options open to expatriate investors.
The Dubai off-plan property market is a hive of activities. From the popular Dubai Marina to Downtown Dubai locations, to the new communities emerging on the outskirts of the city. Be it location, price points, or development type, expatriates looking at buying an off-plan home in Dubai have a wider choice of options than ever before to choose from.
Advantages Of Being An Expatriate Off-Plan Investor In Dubai
One of the advantages of being an expatriate off-plan property investor in Dubai is the ability to conduct in-depth site inspections. Having the ability to research a development’s location, reputation, and amenities give the expatriate more benefits.
Nothing quite replaces the ability to check out a potential property investment in person. Similarly, as a local, resident expatriates often have a better understanding of a location’s potential attractiveness than other investors.
Remember to manage your expectations. You don’t have to base your decision to invest in an off-plan property in Dubai based solely on brochures, a mock-up apartment, and draft floor plans.
Local Knowledge Wins When Buying An Off-Plan Home In Dubai
Make sure you research the developer you’re planning to buy from. Do check out some of their completed developments to get a feel of what their finished product may look like. Local reputation for using quality construction materials can play a major bearing on the end result of your investment.
Similarly, being local prepares you for market fluctuations. While the current climate points towards opportunities for capital gains and attractive ROI from rental investments, the opposite could also prove to be true in the future.
Anything can happen between the time you purchase your off-plan property and take ownership of the keys. Constantly monitor real estate trends in the Dubai real estate market. Always be mindful to make an informed decision when you decide to invest in an off-plan property in Dubai.