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Are Off Plan Properties a Good Investment in Dubai

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Holo Team

2023-06-11T06:28:15.258Z


Dubai boasts a thriving real estate market that attracts individuals and businesses worldwide. Off-plan properties are buildings or units that are under construction or new builds that you purchase directly from the developer. Typically you commit to buy an off-plan property before its completion and you may take a post-handover payment plan to finance the upfront costs of buying the property.

If you're considering investing in off-plan property in Dubai, it's important to understand the various property types available. In this blog post, we will explore the most advantageous types of off-plan properties to consider when investing in Dubai and how to arrange finance when your property is ready for you to move in.

Apartments

Apartments are often the first choice that comes to mind when considering off-plan property investments. They are more affordable compared to villas and townhouses, making them highly sought-after in Dubai. Apart from the potential for rental income and a good return on investment (ROI), carefully analyzing the market and selecting a well-located property can lead to substantial capital appreciation. In-demand projects tend to sell out quickly due to their excellent locations, reasonable prices, and flexible payment plans.

Villas and Townhouses

Villas and townhouses present another attractive option for off-plan property investments in Dubai. These properties specifically target families rather than single individuals or couples. The ROI of villas and townhouses depends on factors such as location, amenities, plot size, unit location, and internal layouts. Preferences vary among buyers; some prefer open kitchens while others prefer corner units. Villas are particularly appealing for capital appreciation, often experiencing significant value growth shortly after purchase. Unless the property is in poor condition, you can likely sell it for a substantial profit.

Mixed-Use Developments

Mixed-use developments combine multiple types of properties, such as residential, commercial, office, retail, and hospitality spaces, within a single project. These developments aim to create a sense of community and offer residents and visitors the convenience of living, working, and shopping in one location. In urban areas where space is limited and demand for convenience is high, mixed-use properties are increasingly popular. They provide investors with the opportunity for high rental yields and capital appreciation in prime locations. Investors seeking a diversified portfolio with a steady income and long-term growth find mixed-use developments highly attractive.

Dubai's real estate market offers a diverse range of off-plan properties to suit different investor profiles. The choice of the best type of off-plan property for investment in Dubai depends on an investor's financial objectives, risk tolerance, and thorough market research. Conducting comprehensive due diligence and seeking professional advice before making any investment decisions is crucial.

How do you finance the purchase of an off-plan property?

Typically you will pay an amount up front and then pay the remainder of the balance in installments before you move in. If you are looking to invest in an off-plan property, you can mortgage the remainder of the balance.

Using a mortgage calculator in Dubai will give you an indication of how much you could borrow to finance the purchase of your off-plan property. Or you could speak to a home mortgage consultant to understand what mortgage products are available and walk you through all the options and best Dubai mortgage interest rates.

Holo is the Middle East's first digital mortgage platform and includes a mortgage calculator and a fast online mortgage application that searches for the right mortgage for you. Our team is on hand to answer all your mortgage frequently asked questions, and will provide you with impartial expert advice for free!

Looking for a mortgage in Dubai? Let's head to Holo.