One property trend that has taken over the Dubai Real Estate in recent years is investing in off-plan properties. While under-construction properties can be bought for as cheap as 10-30 percent lesser than their market value, they come with risks that can put all your money down the drain. Some of these risks are delays in completion, poor quality of construction, lack of amenities, and unavoidable fluctuations in the market.
However, no real-estate mogul will miss out on the incredibly flexible payment options the developers lure you with. These schemes include paying 1 percent of the amount every month, payment of 50 percent during the signing and another half at completion, and paying 10 percent to move in. Moreover, the fact that as the property nears completion, the prices will increase leaves you little time to think the decision through.
Therefore, we took the liberty to curate the four key factors that you need to consider before investing in an off-plan property.
1. Surrounding Infrastructure
When planning a substantial investment such as investing in off-plan properties in Dubai, you should follow a futuristic approach. No matter if your property will serve as an investment or your residence, make sure that it has all the necessary infrastructural facilities in its vicinity including schools, fitness centers, supermarkets, parks, and, possibly beaches. Plus, there is no harm in confirming the tech that your smart-home will be based on from the developer.
Therefore, decide upon a region or locality that has the most amenities, is well-connected to the rest of the city, and has prospects of development in the future. In this way, your investment will turn out to be beneficial for you and your family.
2. Go Through the Developers’ Creditworthiness
You can always contact a private real estate investment company to help you with the background of the developer. In this way, you will know whether the developer has been faithful to their promises in the past or not regarding the quality of construction, on-time completion, and more.
The trustworthiness of the developer is crucial because you are handing over your hard-earned money, and you need to make sure that it is going in right hands. Otherwise, you will not only lose the money but also the home you have aspired to raise a family in.
3. Payment Plans
An added advantage of investing in an off-plan property is that you can opt from amongst the flexible payment options provided by the developer. Some off-plan projects in Dubai offer you to pay the deposit first and the rest of the amount in manageable installments. Others might ask you to pay one half of the amount in the beginning and the other half when the property is handed over to you.
Such payments are comfortable, and you can take loans on them too. Then again, make sure you don’t end up overburdening your finances.
4. Completion Date
When purchasing an off-plan property in Dubai, make sure that the contract with the developer includes the expected completion date. This is important because sometimes, due to delay in handing over the property, you can face monetary loss if you have already given up the possession of your previous home. In such cases, the developer should offer compensation as well.
Finally, investing in off-plan projects in Dubai is completely the buyers’ choice. However, due to frequent disputes and illegalities, the developers and their actions are regulated by the authorities.