Dubai’s real estate market continues to thrive, offering lucrative investment opportunities in the off-plan segment. In 2022, the emirate experienced remarkable growth, with a staggering 144% surge in off-plan performance, contributing to the overall boost in the UAE’s real estate sector. As we look ahead to 2023, an impressive 115,000 units are currently under construction, with 34,000 units exceeding 70% completion and expected to be delivered by the year-end. Discover the key factors driving this growth and why investing in Dubai’s off-plan developments is a smart move.
Investment Potential: Buying off-plan allows investors to secure properties at the earliest stage and the lowest possible prices. With a wide range of options available, investors can select the best units under development. Moreover, the approximate downpayment of 10% makes it an affordable option, especially compared to the typical 20-25% cost associated with completed projects.
Convenient Payment Structures: Off-plan real estate offers flexible payment structures, making it more accessible for investors and end-users. The installment schemes, such as the 40-60 allocation, allow buyers to pay 10% upon signing, 30% in installments over the 18-month construction period, and the remaining 60% at handover. This eases the financial burden on investors and enables them to structure rental contracts that are both profitable and attractive to tenants.
High Rental Yields: Upon completion, off-plan property owners who choose to rent out their units can benefit from the steady influx of expats in the UAE. Even in upcoming areas like Jumeirah Village and Al Furjan, landlords can expect a guaranteed annual minimum net return of five percent. These locations offer high-quality affordable housing, making them attractive options for both investors and tenants.
Safety and Regulations: Dubai’s Real Estate Regulatory Authority (RERA) has implemented robust regulations to protect buyers from delays and project cancellations. Introduced in 2017, these laws safeguard buyers of off-plan real estate, ensuring their best interests are protected throughout the process. Installments are deposited into regulated accounts, accessible to developers only as they meet construction milestones, providing peace of mind for investors.
Peace of Mind: For those purchasing off-plan properties to eventually live in, there are additional benefits. Owners can rest assured that they will be the first to enjoy their brand-new apartments. With a Defects Liability Period of one year, developers take responsibility for rectifying any defects that may arise. Furthermore, developers and contractors have a ten-year obligation to maintain the structural integrity of the development, offering long-term peace of mind.
Investing in Dubai’s off-plan real estate provides an opportunity to experience upgraded designs, technology, and amenities. One notable example is the upcoming ZaZEN Gardens in Al Furjan, the first LEED Gold certified and Well-Being integrated development. This modern sustainable design aligns with Dubai’s 2040 Urban Master Plan and the UAE’s commitment to achieving Net Zero emissions by 2050. With high-quality finishes, easy connectivity, and a host of community-focused amenities, this development exemplifies the evolution of Dubai’s real estate landscape.
Embrace the vibrant real estate market in Dubai, capitalize on the growing demand for off-plan properties, and secure your future in one of the world’s most dynamic cities. Take advantage of the opportunities Dubai has to offer and make a smart investment in its thriving real estate sector.
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