One property tendency that has taken over the Dubai Real Estate in recent years is investing in off-plan properties. While under-construction properties can be bought for as cheap as 10-30 percent lesser than their market value, they come with risks that can put all your money down the drain. Some of these risks are delays in completion, poor quality of construction, lack of amenities, and unavoidable fluctuations in the market.
However, no real-estate entrepreneur will miss out on the amazingly flexible payment options the developers lure you with. These payment plans include paying 1 percent of the amount every month, payment of 50 percent during the signing and another half at completion, and paying 10 percent to move in. Moreover, the fact that as the property nears completion, the prices will increase leaves you little time to think the decision through.
Therefore, we took the liberty to curate the four key factors that you need to consider before investing in an off-plan property.
- Track Record of Property Developer
You can always contact professional real estate company to help you with the background of the developer. In this way, you will know whether the developer has been faithful to their undertakings in the past or not concerning the quality of project development, on-time completion, and more.
The credibility of the developer is important because you are handing over your hard-earned money, and you need to make sure that it is going in right hands. Else, you will not only lose the money but also the home you have wished to raise a family in.
- Nearby Infrastructure & Developments
When planning a substantial investment such as investing in off-plan properties in Dubai, you should follow a futuristic approach. No matter if your property will serve as an investment or your home, confirm that it has all the needed infrastructural amenities in its neighborhood including schools, fitness centers, supermarkets, parks, and, possibly beaches. Plus, there is no harm in checking the tech that your smart-home will be based on from the developer.
Therefore, decide upon a region or locality that has the most amenities, is well-connected to the rest of the city, and has prospects of development in the future. In this way, your investment will turn out to be valuable for you and your family.
- Flexible Payment Plans
An added advantage of investing in under construction property is that you can choose from amongst the flexible payment preferences provided by the developer. Some off-plan projects in Dubai offer you to pay the down payment first and the rest of the amount in convenient installments. Others might ask you to pay one half of the amount in the start and the other half when the property is handed over to you.
Such payment plans are comfortable, and you can take home loans on them too. Then again, make sure you don’t end up overburdening your finances.
- Property Handover &Completion Date
When acquiring an under construction property in Dubai, validate that the agreement with the developer includes the predictable completion date. This is significant because sometimes, due to delay in handing over the property, you can face financial loss if you have already given up the possession of your previous home. In such cases, the developer should offer compensation as well.
Finally, investing in off-plan projects in Dubai is completely the buyers’ choice. However, due to frequent disputes and illegalities, the developers and their actions are regulated by the government authorities.