It is represented in the price, payment facilities and profit margin on resale

Two experts review the attractiveness factors of “off-plan” versus “ready” real estate

Two real estate experts said that there are factors that increase the attractiveness of real estate projects on the off-plan or (off-plan) versus ready-made properties.

They explained to "Emirates Today" that these factors are represented in the low price of "off-plan" projects compared to ready-made properties, in addition to the payment facilities offered by developers, and the increase in the profit margin upon resale.

Positive and negative

The Chairman of the Board of Directors of "W Capital" real estate brokerage, Walid Al-Zarouni, said that there are positive and negative aspects when buying "off-plan" properties, pointing out that the positive aspect is to obtain comfortable payment options in several stages, which works To enhance the financial flexibility of buyers, thus making these properties accessible to a large group of people, and the buyer can achieve a lot of gains; This is because the paid-up capital in the property increases in value when it is completed on time.

He added that the negative aspects of buying "on the map" are represented in the buyer's inability to accurately determine the amount of the actual return on the investment, and that fluctuations in the real estate market may affect the final product in the real estate market "on the plan".

Al-Zarouni pointed out that there are also negative aspects to buying ready-made properties, but they are considered advantages of the “off-plan” property, including the amount of the initial payment required to be paid to complete the purchase process, as the buyer must secure about 35% of the purchase price of the property in order to be able to pay the initial payment. and other hidden fees.

Al-Zarouni considered that the “off-plan” purchase is a good option for many buyers; Real estate developers offer many payment plans options related to the down payment and the required payments, which may reach zero value in respect of the down payment, and extend to 10 years for the payment plans of the rest of the payments.

He added that the prices of off-plan real estate are lower than the prices of the ready-made real estate market, given that the cost of off-plan real estate is 25-30% lower.

He continued: “We also find that the time taken in the process of purchasing a secondary property is much longer than that required to purchase a property on the scheme, especially in light of the presence of some complications and procedures, such as obtaining a no-objection certificate from the developer and the owners association, obtaining mortgage approvals, and settling loans. The seller’s mortgage in the event of purchasing a mortgaged unit by the bank and many more.

Al-Zarouni stressed that the process of buying ready-made properties, in turn, includes many advantages, such as the ability of the buyer to move to it immediately, and then get rid of the burden of rents he pays, and investors rent the housing unit and then get profits and rental returns.

Price Gap

For his part, FEM Real Estate CEO Firas Al-Masdi said that from 2016 to 2020, there was a gap between the price of ready-made properties and their counterparts under construction, pointing out that the price of the ready-made property was lower than the price of the property. Under construction.

He explained that the real estate on the plan is currently priced at approximately the same percentage lower than the ready one.

He stressed that the reasons that raise the prices of ready-made properties against the plan or (on the map) is the transfer of ready-made property from one owner to another, as the large number of sales transactions on ready-built properties raised prices in the resale market to the top, compared to the off-plan property, which did not rise, but rather He remained almost stationary.

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