Off plan properties – The basic Concept

Off plan properties are basically pre-construction properties that do not exist physically. When Dubai real estate was experiencing boom, the demand of off plan properties was at its peak. Many real estate developers traded off plan properties successfully and made good profits. But when the global recession hitDubai real estate sector in 2008, off plan properties were the first to suffer. This is because off plan properties are pre-construction properties and it was really hard to create their demand in the market when the buyers’ confidence even on the ready properties was very low.

Why to invest in Off plan properties?

Investing in off plan properties is a long term investment which yields greater profits without getting worried about the temporary slumps. The investors hoping to invest in off plan properties are basically the speculators who expect substantial capital gains on this investment. The developers who offer off plan properties normally offer discounts and other financial incentives to the early investors of the off plan properties. These incentives along with the capital growth make off plan property investment the most lucrative investment inDubai.

Things to look out for before investment

Though off plan property investment whether for buy or Dubai rental provides greater yields yet this investment is risky. In order to make a well informed decision, buyers must look out for certain things before making such investments.

1. Always keep in mind that off plan properties will bring high yields in long term. Currently as experts are predicating better times forDubaireal estate ahead, investing in off plan property would be a very wise idea. If you want to earn yields in short term, you should better consider investing in ready properties.
2. Before making an investment, always conduct a background check on the developer. Check out his reliability by looking at his previous records, the number of the projects he has delivered and check out if he has delivered them in time or not. You can also check out his reputation on the internet or can talk to its previous clients.
3. During bad times, many real estate projects were halted and even till today, in order to control the supplyDubaigovernment cancels various projects from time to time. So, make sure you visit the site of the construction to see the actual work being taken on the site. Stay away from the developers who show architectural pictures and maps to mislead the investors. Also check the status of the project from RERA from time to time.
4. Always try to invest in the property located near the central city. Many developers start projects at far off places which take double the amount of the time for completion than their normal time. Moreover, the capital gains on such Dubai properties are also less and their growth takes much time.