When you start to find a property in Dubai either for investment or residency, the very common question you have to face is: in which property you are interested? Is it an off-plan project or a ready property?
Deciding on the property is crucial enough, but it is not as easy as it seems to be. Especially when you are looking for a property in one of the world’s real estate property hubs – Dubai, it would be tough for you and you have to go through detailed research because Dubai’s real estate market is not easy to explore.
It offers plenty of options in properties and as an investor or home buyer you have to prioritize which type of property or investment suits you according to your personal preferences.
First of all, you have to clarify your concept about the types of projects or properties, what is the difference between off-plan projects and ready properties in Dubai, for that purpose, you are just in the right place. In this blog, we are going to start a debate on “off-plan projects versus ready properties in Dubai” and this blog will help you to make your decision appreciable for your future.
Introduction To Off-Plan Projects
Off-plan projects are defined as projects that are sold or bought by the investors before construction. Off-plan projects are new developments that are not yet complete. They offer buyers the opportunity to purchase a property before it is built, often at a lower price than ready properties. However, there are also risks involved.
Over the past few years, there has been high demand for off-plan projects among potential investors from all across the globe. These projects are more appreciated and popular.
Whether you are a seasonal investor or investing for the first time in the real estate hub of Dubai, there are plenty of opportunities for Off-plan projects. You can invest in off-plan projects and be part of the mega project even with low investment in hand. The developers allow you to invest or pay the amount through a flexible payment plan. That’s the reason, the off-plan projects are more beneficial and popular among new investors.
Advantages Of Off-Plan Projects
The following are the advantages of off-plan projects in Dubai:
Best off plan projects in Dubai lead to capital appreciation. During the construction, the market value of the project is less but after the completion, the market value increases. It allows investors to get benefits from capital potential appreciation. With time the project progresses and gives more benefits to the investors.
Significant Affordable Prices
Significant affordable price is another advantage of the off-plan project in Dubai. Investors can enter the real estate market with just 5% to 10% of the total investment in hand. As compared to ready projects, the off-plan projects are affordable and offer an easy payment plan.
In off-plan projects, the investors have more chances of customization and personalization. They can add rooms, select the color theme, and decorate the property according to their personal preferences, tastes, and priorities. These projects can reflect the personal taste of the investor. You have more options to design the interiors and exteriors as per your taste.
Flexible Payment Plan
Developers offer easy and flexible and easy payment plans to the investors. Investors have the opportunity to pay the amount in installments. 10% amount is payable at an early stage, during construction, investors can pay in installments and some amount is payable after the project is completed.
Disadvantages Of Off-Plan Projects
Below mentioned are the disadvantages of off-plan projects in Dubai:
Uncertainty In Time Limit
Most of the time, investors have to face uncertainty in time limits in off-plan projects. Delay in the compilation of the project is a common thing. For some investors, investment in off-plan projects can be frustrating as you cannot get an immediate response.
No Physical Inspection
The biggest drawback of investing in off-plan projects is that the whole information you get about the property is available on the brochure or you get information through other promotional material. As a result, you may be disappointed with the final result.
The market value of the project can fluctuate as the real estate market value is not constant it can change with time. For instance, the market value is high at the start of the project and it can be low at the compilation of the project. There is a risk in investment so the investors must also be aware of the market fluctuations and be prepared for any changes. They should also have a plan to mitigate the risk of loss.
Introduction To Ready Projects
Ready projects are defined as complete projects or ready-to-move projects. The secondary property is also a term used for ready projects. For investment in ready properties, an investor must have heavy income for immediate payment. These investments offer high returns and you do not have to wait for months or years to get a profit.
Advantages Of Ready Projects
The following are the advantages of ready projects in Dubai:
Physical inspection is the major advantage of ready projects in Dubai. You can visit the property and get an idea about the construction material, the quality of the material, the interiors, and the exterior of the property.
Immediate Income Generation
By investing in the ready project, you can immediately generate income by reselling the property with heavy profit, and by renting it out, it can be the source of your passive income.
The ready properties are located in prime locations and due to strategically prime locations investors are interested in investing in ready projects and getting more profit.
If you want to occupy the property now, the ready projects give you this opportunity as the ready properties are ready to move on so you can immediately make your informed decision of occupancy or put it on tenancy.
Disadvantages Of Ready Projects
Listed below are the drawbacks of ready projects in Dubai:
Ready properties offer higher prices compared to off-plan projects. The higher initial investment is the major drawback in ready properties in comparison with off-plan projects. These properties do not offer flexible payment plans or installments.
No Personalization Or Customization Option
Limited customization is another factor to consider, you cannot add your choice for designing, interiors, or exterior finishing.
In ready properties, you may have to bear the maintenance cost or you need to renovate the property to attract potential tenants depending upon the condition of the property.
Off-Plan Projects Vs Ready Projects At A Glance
|Delay in compilation time
|Ready to move
|Information available on the brochure or 3D vision
|You can physically inspect the property
|No immediate income generation
|Offer highest ROI
|No maintenance cost
|Sometimes you need to renovate the property and face the maintenance cost
|Wait until the compilation
|Immediately use it for occupancy
Investing in Dubai’s real estate market is a crucial task. Each type of investment has its advantages and disadvantages. As investors, it depends on your decided criteria in which type of property either off-plan or ready property, you want to invest. Before investing in property, do your homework, consider the factors that are beneficial for you, and set the criteria of your preferences, needs, budget, and goals.