Dubai’s real estate market has been rapidly growing within the last 50 years. Despite several ups and downs, the market is slowly recovering due to the trade and tourism sectors.
Dubai, being the second largest emirate of the UAE, combines various lifestyles. The skyscrapers from the business area merge with the suburbs of quiet and peaceful family life.
Dubai offers flats, townhouses and villas that meet the needs and requirements of each individual.
Some areas of the emirate are still under construction, resulting in debates about whether an individual is to choose off-plan or a ready-to-move-in regarding property purchase. The topic is trending amongst agencies and investors who need to take into consideration all possible options in order to make an informed decision.
In this article, we will talk about the differences, advantages and disadvantages between off-plan and ready-to-move-in properties. A fresh look at these tips will ease and fasten the decision-making process.
Advantages & Disadvantages Revealed
Off-plan properties, or “off the plan”, are quite popular options amongst buyers. The property is purchased directly from the developer or the first owner in some cases. However, investment in off-plan properties requires a thorough qualitative analysis to avoid risks in delivery dates, asset value or hassle regarding handover.
Pros of Off-Plan
● Lower Prices
One of the most apparent advantages of investing in off-plan is affordability. It is definitely more affordable to pay for a property off-plan rather than a completed project ready to move in. Appealing prices are the reason for popularity amongst investors. In Dubai, it is also possible to get a mortgage with effective payment options.
● Buyer Protection Laws in Dubai
To protect buyers from fraud or project cancellation, RERA (Real Estate Regulatory Authority) and DLD (Dubai Land Department) have protocols set in place in terms of purchasing properties. One of the rules states that the developers cannot access the funds until a certain percentage of the project is complete.
● Variety of Projects
There are plenty of projects in Dubai. Various heights and styles shape Dubai uniquely. From flats all the way to stand-alone villas in different areas of the city. A variety that caters to all budgets making the selection process clear.
● Flexibility in Interior Design
There are no limitations to designing the interior of your future property. The developer might even have a specialist assigned to help clients in interior design. Nothing can be more pleasant than styling every detail in your own way turning your house into a home.
● Investment for Future Reselling
“Everyone wants a piece of land. It’s the only sure investment. It can never depreciate like a car or washing machine. The land will only double its value in ten years”, says Sam Shepard.
Buying a property is an investment for the future. Who knows what has the market has planned for us?
Cons of Off-Plan
● Delay or Cancellation of Projects
Any reason for project delay may cause disappointment and problems. Cancellation is the worst-case scenario. However, problems may happen even in the most successful cases.
● Market Change
The COVID-19 pandemic caused major down for many types of businesses including real estate. The prices became unstable and predictions unable to be accurately determined. Be alert and conduct proper research before investing in off-plan in the near future.
● Expectation Versus Reality
During the development process, all projects have appealing and magical 3D renders for the future property. Perfectly designed graphics is the most important way to attract clients. However, the result is not always as expected. In this case, don’t forget to contact RERA (Real Estate Regulatory Authotity) and DLD (Dubai Land Department).
● No Immediate Return
Investing in off-plan for future money return is very common in the property sector. One needs the patience to invest and wait for the return considering the project length and specifications. There is no guarantee of on-time completion thus there cannot be an immediate return on investment.
Is it possible to find a perfect house with all the details designed just for you? Yes, but finding such a house may require lengthy and thorough research in order to fulfil all your expectations.
Pros of Ready-to-Move-in
● No Risk of Delays
The most attractive advantage in purchasing a ready-to-move-in property is 100% completion. There are no delays in moving in and the property is ready for the tenant or buyer to move in almost immediately.
● Save on Rent
When you find the best property and a successful mortgage, the money spent on rent turns into an investment for your own house. The prices may vary slightly, but the result is worth it.
● You Get What You See
It is so easy to fall in love with a perfectly designed home. From the time of viewing the property, there is nothing hindering you from moving in and starting to enjoy your investment.
● An Immediate Return on Investment
If you already have property, there is nothing better than investing in another one. There are always individuals or families looking to find a good home rent. A clever investment guarantees a return of money.
● Check the Neighbourhood Before Moving
It is imperative to investigate the neighbourhood before moving. You may want to check up on the closest school to the neighbourhood, how far the commute is from work, the type of community or if it’s a pet-friendly neighbourhood to see if this property will suit you in the future.
● No Hidden Charges
Finally, the biggest advantage of a ready-to-move-in project is that there are no hidden charges due to unforeseen circumstances. Simply purchase the property as per the agreed price, and you’ve got yourself a property!
Cons of Ready-to-Move-in
● Restriction to Interior Modification
It is always possible to change the colours of the walls or mix and match with furniture, but it comes to the infrastructure of the house, you may need permission to be able to customize as you please. This may cause issues when trying to find the perfect house that meets every individual’s needs.
● High Cost
It is certainly expected that a completed project, ready-to-move-in property, costs significantly more than an off-plan. The price may vary according to the material used, the interior design and amenities already included in the unit. The market fluctuation may also cause price variation.
● Age of The Property
Sometimes you may fall in love with a property that’s not brand new or that’s part of a very old community. In this case, it is recommended that you investigate the maintenance of the building/community before finalizing the deal on the property. The advantage that Dubai has regarding the age of property is that a majority of the areas and properties are fairly new due to the fact that Dubai itself is a newly built-up city in comparison to, for example, London or Paris.
● Quality of Construction
When you are investing in an off-plan, there is an opportunity to follow up the construction process, as well as the materials used. In the case of ready-to-move units, you see what you get and that’s the end result. Everything may be perfectly covered, but there is no guarantee of what may or may not be hiding behind the beautiful interior and exterior.
Purchasing property is a lengthy and expensive process. Both off-plan and ready-to-move properties have their pros and cons. We advise you to always consider and understand the advantages and disadvantages before buying a property.
Hiring a professional or properties consultant may ease the task. Property consultants are familiar with the ongoing processes in the market and have feedback about the ready-to-move properties.
Instead of going through the hassle of researching and exploring yourself, trust the experts in the field to give you their opinions and advice.
At Allegoria Properties we’re always up to date with what’s going on in the market. We explore and consider the reviews and the satisfactory remarks of our customers to develop future negotiations.