Off-plan property is the term used for real estate before its construction is completed. Purchasing off-plan real estate is to purchase property before it is commissioned, most often in the early construction stages or even in the project phase. In this article, we will consider the pros and cons of investing in off-plan real estate.
According to official statistics, 3219 off-plan real estate transactions for $1.9 billion and 3781 transactions with secondary and finished properties for $3 billion were concluded in Dubai in November 2021. Thus, of a total of 7000 transactions, 46% belonged to the off-plan market.
Investing in off-plan real estate has several advantages:
Thanks to stable economic development and efforts from authorities, risks in the off-plan sector in Dubai have been minimized. However, they do exist:
The real estate market in Dubai is growing due to the following positive factors:
Dubai is becoming one of the most attractive places to live and do business. Ian Goldin, Professor of Globalization and Development at Oxford University, believes that increasing numbers of people will move to Dubai, positively influencing the real estate market. ” We are seeing a market return to pre-pandemic levels and that growth will continue,” he says.
In October 2021, the average price of real estate in Dubai was $2,863 per m². This is 19.94% more than in October 2020 and 0.95% more than in September 2021.
The Dubai Land Department reports that preliminary estimates indicate that in the 4th quarter of 2021, there were approximately 28,000 transactions – 81% more than in the 4th quarter of 2020.
An Official Launch is the official start of sales. Pre-launch is the initial stage of the project with the possibility to book a property. In this case, there is no pit in the area for construction and developers provide potential buyers with only 3D renders.
In such cases, there is a deposit and a document of expression of interest (EOI). Some developers call this the pre-registration.
When sales officially begin, the investor signs a standard purchase and sale agreement for the primary market (SPA).
Ax Capital is a professional real estate agency in Dubai. We accompany investors before, during, and after a transaction.
Developers in the UAE work under different conditions and payment schemes as well as provide their customers with various privileges. We will select https://axlandings.com/encore-casino/ with a yield above average (up to 8-10%). Ax Capital has been working in the Dubai real estate market for more than 12 years, has good connections with developers, and can provide its clients with specialized and dedicated assistance for real estate purchases. Contact Ax Capital for a consultation and comparative analysis of market offers.