Advantages and disadvantages of off-plan real estate
Buying apartments under construction is a common practice in Dubai and one of the most cost-effective ways to make money. Is it worth buying an off-plan house? What are the risks? What are the advantages and disadvantages of buying a house in a project under construction? The source https://www.axcapital.ae/ answers these and other questions.
About the profitability of buying housing under construction
Buying an apartment in a residential complex under construction means investing in your future. In the United Arab Emirates and Dubai, in particular, there are many opportunities to earn money, where real estate is one of the most profitable destinations. Off-plan apartments have an advantage – guaranteed payback.
The newer the project is, the lower the prices for apartments are. After the construction is completed, the investor receives ready-to-live housing that can be rented out or resold at a higher price.
Why are investments in off-plan housing profitable?
- The cost at the construction stage is lower than the price of the finished property;
- A great range of housing from different developers in popular areas of Dubai;
- High demand for buying and renting housing;
- Quick return on initial investment;
- High profitability – depending on the type and characteristics of the property, the income profit can reach 12-15% per year.
Advantages of off-plan real estate
Buyers of apartments in the project under construction announce the following advantages:
- Quick deals – within two weeks;
- Direct contact with the developer;
- Individual payment plan;
- Protection of the buyer’s interests, support from the state at all stages of the transaction;
- Minimal risks;
- Profitability;
- Payback of the purchase immediately or after several years;
- No income taxes;
- Online purchase.
Disadvantages of off-plan property
It is important to emphasize that the Arab real estate sector is under protection. The law strictly regulates all transactions for the purchase and sale of housing in the UAE. All developers with their projects and realtors must be accredited and licensed. No specialist has the right to work in this field without it. Thus, the risk of being deceived by sellers is small here.
Possible disadvantages of buying housing under construction include:
- Reduction of real estate prices after completion of construction and commissioning of the project. The market price for ready-made housing may be equal to or lower than that paid by the investor at the construction stage;
- Freezing or canceling a project. Such an event in Dubai is out of the ordinary. Under unexpected circumstances, the project is transferred to another developer and then is completed, but investors have to wait for the keys a little longer.
Buying a property in Dubai
Interested in real estate in Dubai Marina or another popular area of Dubai? You can find your option in the catalog on Ax Capital. Moreover, there are more choices from the leading developers of the UAE on the website!