"Planned real estate" .. an ideal investment

Waleed Al Zarouni

January 16, 2023

Off-plan properties prove to be an ideal investment for buyers and investors, whether they are purchased for residential purposes, or for investment and re-lease.

Off-plan sales in the UAE in general, and Dubai in particular, recently, have received increasing interest thanks to many advantages, including convenient payment plans, and the ability to choose from a wide range of real estate.

Buying an off-plan property is usually seen as a long-term investment, as the value of the property, which can rise in the future when the project is completed, is encouraging.

Off-plan real estate projects enhance the strong performance of the real estate sector in the UAE, as they are characterized by lower costs by about 20 and 30% compared to ready-made units.

The off-plan real estate unit sale system provides the buyer with the ability to pay the amount in installments, at a time when real estate developers offer various and attractive payment plans, which enables the buyer to better plan and manage his financial affairs.

This sector enjoys wide popularity due to the advantages it provides, as it allows, before the start of the handover phase, the possibility of redesigning the units during construction operations, after obtaining the approval of the real estate development company.

This investment provides the possibility of reselling the housing unit before the completion of construction operations, and provides alternative investment opportunities to diversify the investment portfolios of investors, thanks to its low purchase prices and its ability to facilitate more cash flows compared to ready-made real estate.

Here, it is necessary to point out some things that must be taken into account before entering into the purchase of an off-plan property, including ensuring the credibility and level of work of real estate management companies, by tracking their previous achievements, and knowing whether they are committed to delivering the residential project on time or whether the delivery process is delayed. Usually, it must also be ensured that the real estate management company has a wide reputation, as some companies sometimes cancel the project and not fully develop it, which leads to some problems in the process of recovering the paid amount.

It must also be ensured that the project is completed according to the agreed plan and the materials used in its construction, as the actual quality of the property may vary, and therefore, these problems can be avoided by referring to the real estate developer’s previous achievements.

Buying off plan is a good option for many buyers;

As real estate developers offer many options for payment plans for the required payments, which may extend to 10 years, but it should be noted here that real estate developers include the interest cost in the sale price, and therefore we find that the longer the payment period, the higher the level of cost borne by the buyer.

• Buying off plan is a good option for many buyers, and real estate developers offer several payment plan options for the required payments.

@WalidAlzarooni

walid.alzarooni@gmail.com

Chairman of the Board of Directors of «W Capital Real Estate Brokerage» 

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