Off-plan vs Secondary Properties in Dubai: Which to Buy?
Fixed location and property
Mortgage Applicable after meeting all terms and conditions ( Which vary a lot from one individual to another )
Can be inspected before purchase
Higher Prices: The prices for ready projects in Dubai are on the higher side when compared with off-plan properties for sale in Dubai.
Limited customization: When comparing the difference between offplan properties in Dubai and ready properties, there is limited scope for customization in ready properties as they are already built and finished.
Potential depreciation: The value of ready properties in Dubai can depreciate or they can experience slower capital appreciation depending on the market conditions since they appreciated in the past and might have reached their top appreciation.
Less flexible payment plans: usually it is full cash payment leading to not having more fluidity for other business needs.
Maintenance issues: some ready properties in Dubai are set and maintained exceptionally for buyers. However, After a few months, buyers might run into problems with maintenance such as pipe leakage, broken interior, rusty structure, and sewage issues which might not be apparent at the time of purchase—leading to higher costs and lower profits. This does not apply on all of Dubai's properties. We are just stating that some of them have those problems.
Average Appreciation rate of 20-35% lost.
Less modern facilities: in some ready properties, there might not be anything interesting for tenants except a pool, gym, and conference room. This will lead to less profit since the experience of the tenant might not be that comfortable and only basic = Less profit for investor.
Lower rental yields: Dubai for the past 4 years has witnessed trending properties that are beating all ready properties. The change in modernity in presenting unique and rare properties will definitely bring in higher returns than any ready properties.
An example of that would be apartments with private swimming pools on the patio. Some developers shifted that to a private jacuzzi on the patio. Others shifted to a private designer pool on the patio where the buyer can control the temperature of the pool on the patio. Some developers are building a private garden on the patio. Some are building an extra little bonus of a private cinema on the patio, Hammocks, a controlled patio glass, foldable glass, floor-to-ceiling glass, rain showers on patios, a waterfall on the patio, and many other trendy aspects. Not mentioning the inside of the properties such as a high ceiling of 3.9 meters which it never existed in Dubai before, Versace ceramics, Lamborgini furniture and ceramics, Mercedes Benz ceramics and furniture, and major collaborations with top brands that never existed in the entire world let alone Dubai itself.
These trends will increase the returns especially since Airbnb tenants are mostly focused on the experience of their stay & the theme of their chosen properties
Now let us take a look at the Off-plan properties:
35% Appreciation won & saved in your pocket.
Brand new homes with guarantees on property age up to more than 10 years.
Great choice of unique properties & amenities ( Private swimming pools, Private outdoor cinema, Trampoline Park, Eden Garden, Treehouse garden, Floating Cinema, Flowting Business Club...)
Winning low-priced property options = Expanding the wallet.
Choosing the right type of properties regarding content, size, view, concept, theme, and location
Winning capital appreciation of 20% to 35%. Minimum, and a higher capital gain.
As the project gains value and the construction advances, the chances of maximum ROI increase highly.
Flexible Payment plans of 5% to 20% down payment only
Customization: customize floor plans and select the fixtures and finishes of your preference
Modern facilities such as Basketball, Cricket, Tennis, Football courts, a Floating Cinema, Cricket Pitch, Jogging Track, Sunset Deck, Sky Jacuzzi, Roof Garden, The Golf Putt, Tropical Retreat Garden, Signature Rock Waterfall, heavens Infinity Sky Pool, Rooftop Sky Lounge, Outdoor Sky Jacuzzi, Boutique Wellness Spa, Sky Garden, Sky Barbecue & Grill Deck, and beach-like lagoons.
Early acquisition: By making a purchase during the pre-construction phase, you get the opportunity to handpick prime units with preferred layouts, views, and orientations.
Early buyers can also take advantage of special offers and discounts from developers to incentivize early sales.
High number of amenities that could reach up to 50 amenities or even 70 such as the Riverside by Sobha in Hartland 2. It reached 70 amenities.
Rental income: One of the things that investors will have with off plan is that they are being built so no income is there. However, some developers presented great deals for this kind of situation. Some developers presented 7-9% ROI for the time taken to build the project. Meaning while a buyer is waiting for his unit to be delivered, he is getting paid as if the unit were functioning. This clause requires full cash payment if a buyer wants that.
Possible Delays: Some developers might experience an extra 2-6 months delay in finishing the project. At the same time, we know developers that deliver even before the handover date such as Binghatti Developers. Therefore, the argument of this clause in the market is not backed up by true evidence. Dubai has developers that deliver late, deliver on time, and deliver before the handover date.
Some might think that they might not get what they paid for at handover time. This information is not valid since Dubai has introduced the SPA agreement & Escrow account. It mentions all the details of the property you bought. The interior, exterior, size, and all you are promised. A developer cannot do otherwise or he will be put on the blacklist and might lose his license which is developers do not even want to get near that. It is a complete destruction of reputation and money.
In conclusion, when we put the pros and cons on paper, you will notice if Ready or Off-plan properties are good for you. What we can sum up here is that the Pros of the Off-plan properties are way more than the Ready ones. We can also sum up that the Cons of Ready ones are way more than the Cons of the Off-plan ones. However, it is really an equation of math to many of our investors. If the positive numbers for a specific type of property are more than the numbers of another type, then the solution is very obvious and simple. However, it is sometimes a preference. So if you like ready properties over off-plan, it is your choice and we are ready to assist. We are Atlantis Real Estate located in Dubai, UAE.
My name is Abu Nahyan Al Nuaimi, a Senior Consultant & C.E.O of Atlantis Real Estate. Make sure that we have what you are looking for and the type you desire from Apartments, Hotel Rooms, Townhouses, Villas, Buildings, and all Commercial properties for sale in Dubai. We do Property Consultancy in Dubai, Property Management, Short-term rental (Holiday homes and Airbnb), Mortgages, Maintenance, Golden Visa, Investor Visa, Bank account opening, Medical Insurance, and ID, All under one company & Multiple licenses. The full package pretty much for all your needs if you want to buy a property in Dubai.
Get ahold of us to make the best decision of your life. Time to level up!
C.E.O & Senior Consultant
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