Dubai is the first choice for people who wish to invest their money in properties, love to enjoy luxury, and lead a lavish lifestyle. There are numerous apartments for sale in Dubai at different locations, and many of them can be the dream house you are looking for.
An apartment is any housing unit that is located inside a building. This may be anything from condominiums to townhouses or even small houses. Most people these days like to buy apartments for living and even for investment purposes.
It may be sea-facing and may comprise a luxurious balcony with your king-size bedroom, which is attached to a splendid restroom. You might look for an apartment that has a lush green garden where you might unwind anytime. All of these plans are made according to the size of the carpet area and your requirements.
If you are looking to invest in an off-plan apartment, you should understand what it means and why investing in it is worth it.
What is an Off-plan Apartment?
When you buy a property directly from the developer(or the first owner) prior to its construction, it is referred to as an off-plan apartment. When you buy the property directly from the developer, you might be required to pay a 10-20% down payment and sign a Sales Purchase Agreement (SPA). Further payments rely on the developer and may vary as per construction costs.
Off-plan apartments have always been the first choice for investors across the world. The biggest reason is the ability to make substantial capital gains. Pre-constructions are typically advertised as developments to early adopters and real estate developers so that the buyer can obtain more benevolent financing terms from their lenders. The financial returns occur because, generally, developers involved in selling the off-plan property offer great financial discounts and incentives to early adopters and buyers.
A rising market with a development period of generally 12 to 24 months may also present a chance for capital growth. Off-the-plan property is often thought to be desirable if there is a high degree of infrastructure nearby, such as a new university or express roads that have already been completed or that will be in the near future.
Benefits of Purchasing Off-plan Property
- Cost-effective Investment
Purchasing an off-plan apartment enables you to get the property at the lowest possible price and that too at the earliest. Additionally, it gives you the option of selecting the best flats inside a specific development. The likelihood of getting the best return on your investment is significantly increased by doing this.
- Lesser Up Front Costs
Payment criteria vary from developer to developer when it comes to purchasing an off-plan apartment. Some developers charge only 5% as a down payment, and the rest of the costs are linked to construction, so the required outlay is very low.
- Flexibility to sell before completion
Investors can frequently sell off their off-plan property contracts before a project is finished. If the market has done well and the project has proven to be popular, owners can frequently sell at a sizable profit. The flexibility to sell your property before completion may give you huge profits.
- You make new purchases
We love buying things brand new, whether it is a pen, a smartphone, a car, or even a house. Though we rarely admit it, human nature loves to own something new. So, buying an off-plan apartment means that you own a new apartment. Also, you can make sure that the construction is done the right way; your apartment may feature the latest design, technologies, amenities, and lifestyle features.
Apart from the advantages that off-plan properties offer, some potential risks are also associated with it, just as every coin has two sides. You have to look for the rise or fall in the market prices because it is not possible that the market will never fall. There are chances that property prices may fall.
Also, it is possible that on project completion, the apartment didn’t meet your expectations because of some material defects or other issues.
Conclusion
Look before you leap!!
This is the conclusion of the blog. There are some definite advantages of buying an off-plan apartment with associated risks. Choose your locations wisely and plan your investment accordingly. Every investment plan comes with a disclaimer!!
