When you start to find a property in Dubai either for investment or residency, the very common question you have to face is: in which property you are interested? Is it an off-plan project or a ready property?
Deciding on the property is crucial enough, but it is not as easy as it seems to be. Especially when you are looking for a property in one of the world’s real estate property hubs – Dubai, it would be tough for you and you have to go through detailed research because Dubai’s real estate market is not easy to explore.
It offers plenty of options in properties and as an investor or home buyer you have to prioritize which type of property or investment suits you according to your personal preferences.
First of all, you have to clarify your concept about the types of projects or properties, what is the difference between off-plan projects and ready properties in Dubai, for that purpose, you are just in the right place. In this blog, we are going to start a debate on “off-plan projects versus ready properties in Dubai” and this blog will help you to make your decision appreciable for your future.
Off-plan Projects In Dubai
The city of opportunity – Dubai is synonymous with innovation and progression in launching off-plan projects. Over the past few years, there has been high demand for off-plan projects among potential investors from all across the globe. These projects are more appreciated and popular.
If you are a new investor, and thinking about investing but are not familiar with Dubai off-plan projects then don’t worry we are here for you. Let us clarify, what are off-plan projects and how would we define them? The terms primary property and off-plan property are used conversely in the real estate market. The brand-new property is planned to be developed by real estate investors or brokers or pre-constructed property that is in the construction and yet not completed is off-plan property.
You can invest in off-plan projects and be part of the mega project even with low investment in hand. The developers give you an opportunity to invest or pay the amount through a flexible payment plan. That’s the reason, the off-plan projects are more beneficial and popular among new investors.
Every matter has two aspects, similarly, investment in off-plan projects has its own sets of benefits as well as disadvantages. It depends on you whether you consider the pros of investment in off-plan projects as worthy as you can neglect the disadvantages or the cons of the investment are noticeable for you.
In this section, we will discuss the advantages and disadvantages of off-plan projects.
Benefits Of Investing In Off-Plan Projects
The following are the benefits of Off-plan projects in Dubai:
- Off-plan projects are a more trending and exciting opportunity for investors and investors have to pay less amount as compared to ready properties.
- Off-plan projects lead to potential appreciation. During the construction or at the start of the project, these projects have less market value, but after the compilation, the market value increases.
- Developers offer easy and flexible and easy payment plans to the investors. Investors have the opportunity to pay the amount in installments. 10% amount is payable at an early stage, during construction, investors can pay in installments and some amount is payable after the project is completed.
- In off-plan projects, there is a chance of customization and personalization. You have an option to design the interiors and select the exteriors as per your choice.
Drawbacks Of Investing In Off-Plan Projects
Scroll down to have a look at the drawbacks of investing in Off-plan projects in Dubai
- Sometimes, investment in off-plan projects can be frustrating for you, because of uncertainty in time limit. The delay in off-plan projects is common.
- In the real estate market, there is always a risk in market value that is not constant, the chance of rise and downfall of property value in the Dubai real estate market is at an equal level. Investors must be knowledgeable about risk and how it affects their investment.
- Off-plan projects are not the source of immediate income, you have to wait for a long time it may take years.
10 Mega Off-Plan Projects In Dubai
List of Dubai Off-plan projects:
- One River Point – Business Bay
- Baccarat Hotels and Residences – Downtown
- 25h Heimat – Downtown
- Club Drive – Dubai Hills
- Al Dar Haven – Dubailand
- Symphony – Town Square
- Casa Serene – MBR City
- Binghatti Tulip – Jumeirah Village Circle
- Park Side View – Dubai Hills
- Naya – District One
Ready Properties In Dubai
Ready properties are complete projects and secondary property is also a term used for ready properties. For investment in ready properties, an investor must have heavy income in hand for immediate payment. These investments offer high returns and you do not have to wait for months or years to get profit unlike in Off-plan properties.
Benefits Of Investing In Ready Properties In Dubai
An investor can enjoy many benefits in investing in ready properties in Dubai. Some of these benefits are:
- Ready properties are the source of immediate rental income. Right after heavy investment, you can get passive income in the form of rent of the property.
- The market value of the ready properties in Dubai is stable as these properties are developed in an established area so there is a rare chance of price fluctuation in such properties.
- An investor can physically inspect the property and get an idea about the condition of the property and the construction material of the property
Drawbacks Of Investing In Ready Properties In Dubai
Some drawbacks of investing in ready properties in Dubai are:
- The higher initial investment is the major drawback in ready properties in comparison with off-plan projects. These properties do not offer flexible payment plans or installments.
- Limited customization is another factor to consider, you cannot add your choice for designing, interiors, or exterior finishing.
- In ready properties, you may have to bear the maintenance cost or you need to renovate the property to attract potential tenants depending upon the condition of the property.
10 Mega Ready Projects In Dubai
List of Dubai Ready Projects:
- Jumeirah Gate Tower
- Elite Downtown Residence
- MBL Residence
- Marquise Square
- Paramount Tower Hotel and Residences
- Emirates Living
- Arabian Ranches One
- The Sustainable City
Investing in Dubai’s real estate market is a crucial task. Each type of investment has its advantages and disadvantages. As investors, it depends on your decided criteria in which type of property either off-plan or ready property, you want to invest.
Before investing in property, do your homework, consider the factors that are beneficial for you, and set the criteria of your preferences, needs, budget, and goals.