The projects off plan in Dubai are in demand on a par with move-in ready houses. And if the latter are often chosen to move to permanent residence, then real property under construction is actively in demand among those who want to save money from inflation and increase it. Let’s consider whether it is profitable to invest in housing in the UAE and what are the advantages of both real property formats.
Four reasons to invest in overseas property in the UAE
The main reasons to buy are:
- Affordable price. Real property in Dubai is cheaper in comparison with analogues in European resorts or large cities.
- High demand. Since almost 90% of the emirate’s residents are expats, housing is always in demand and there are no difficulties in finding tenants.
- Profitability. The profit ratio per year can reach 7-8%. The final figures depend on the specific type of property and the prestige of the district in which it is located. However, still you can easily get some extra profit and reinvest it, for example you could buy Bitcoin, Litecoin or any other type of crypto.
- No taxes on personal income. You can make a profit from renting an apartment legally and not lose income in the form of obligatory payments to the state.
What is more profitable to invest in: off-plan or ready-made apartments
It is difficult to find a general answer to this question. Everything depends on the available budget and future plans. Briefly, there are several points that should be taken into account:
- Off-plan real property at the stage of construction start is 20-30% cheaper than the ready-made one. Therefore, if the owner changes his mind and decides to sell it, and not rent it out in the future, he will be able to make a profit by the time of the house commissioning.
- Off-plan properties open up an opportunity for a phased investment of funds in case of a budget deficit. When making a transaction, it is enough to make a preliminary payment, the value of which ranges from 5 to 40% of the housing cost. The rest of the amount is paid in installments.
- The purchase of ready-made housing is not associated with risks and the waiting process. Rental income can be received immediately after registration of ownership.
What are the risks of real property sales off-plan
The main one among them is the likelihood of failure to deliver housing. But it is reduced to a minimum in Dubai, as the state carefully controls construction processes. If the developer fails to fulfill its obligations, the project is transferred to another developer.
How not to make a mistake when selecting a project for investment
The most important thing is to withstand temptation of low prices, which can be offered by developers without proper business reputation. Therefore, it is necessary to cooperate with companies that have state registration. You can check its availability on a special resource, in the application from the Dubai Land Department. It will also be helpful to study the projects already implemented by the developer: whether there were problems with the deadlines, whether the commissioned properties corresponded to the declared characteristics. You can get acquainted with the offers of reliable developers in Dubai on the website https://emirates.estate/