Buying a home that only exists on a piece of paper sounds a bit crazy and very risky if you are a first time buyer, but it can be a great opportunity to buy the home of your dreams while spending less or to get a good deal as an investor.
Many people consider off-the-plan purchases risky and their concerns are sometimes justified, but there are plenty of good reasons to buy a property based on figures and impressions, especially when the property is in the UAE, where the real estate market is gradually booming.
Here are 6 good reasons to buy off-the-plan in the UAE:
1. You Will Get Bargain Prices
Compared to other major cities in the world, property in the UAE is for sale at competitive prices. Cheaper real estate is definitely lucrative to both UAE residents and non-residents. Currently, the price of property in London’s prime locations is almost fourfold that of Dubai‘s prime. So, buying off-plan can save you a large sum of money.
In addition, a huge number of off-plan properties in the UAE are currently on their designing and construction stages targeting the upcoming EXPO 2020. So, it is the right time to bag a bargain on an off-plan project.
2. You Will be Offered Plenty of Options
Availability of a great number of options is always a boon for off-plan property seekers, especially in the UAE where numerous new projects are popping up in the housing market on a regular basis, making the developers vie with each other to sell their properties.
Needless to say, the more the options, the greater the decline in prices! Increasingly, fierce competition makes the developers offer a slew of attractive offers including amazing schemes, easy payment options, incentives, and smaller deposit options for the off-plan buyers.
3. Possibility of Quick Capital Gains
Buying off-the-plan allows you to buy a property at today’s price. By the time the deal settles after construction, the property can be worth more than you paid for, if it is a rising market. The UAE is among the fastest growing economies in the world. Experts believe that capital appreciation will gradually increase as mega infrastructure projects are on the rise in all the emirates and Dubai is the host city for Expo 2020, which will attract an influx of visitors.
In addition, capital gain on Dubai property is higher than that of any prime city across the world including London, New York, Hong Kong, etc. Price appreciation is one of the best reasons you should buy off-plan property in the UAE.
4. Lucrative Rental Yields
If you want to invest in off-plan property with the intention of profiting on rental income, UAE offers you lucrative rental yields. Though the prices of properties have fallen in recent years, rentals have remained stable with an influx of residents. You can have 7%-8% rental yields in Dubai after paying service charges on the unit, which is almost unimaginable in other cities across the world. Moreover, if you are a non-resident, you do not have to pay any tax on rental income.
5. Laws for Protecting Buyers’ Rights
A range of new or revised regulations by the UAE’s real estate regulatory agency including doubling the registration fees in Dubai and changes in UAE-wide mortgage cap might have slowed down the country’s property market but the laws are instrumental in protecting the buyers’ rights and containing the housing market that was in danger of overheating. So, stricter laws are another reason for you to invest in off-plan property, as they will protect you against all types fraudulent activities and whims of the developers.
6. Savings on Repair Costs
Sounds silly? If yes, you must be new to the housing market! Buying an older property can sometimes cost you a huge amount of money for renovation, repairs, and on-going maintenance work. But, an off-plan property offers you a brand new home that is unlikely to warrant any such costs. Moreover, you have to pay a significantly less amount of money for an off-plan purchase in comparison to buying a new home.
If you are thinking of buying off-plan properties, the UAE is an ideal place for you to invest your hard-earned money. It is an investment haven with a solid government, prosperous business atmosphere, and excellent economic future ahead.