Off-plan Properties: Still a Viable Investment in Today’s Market?

Sales for off plan property in Dubai reached unprecedented record levels in 2017. As the sector’s robust performance is expected to taper off this year is now still the best time to invest in off-plan projects? Here are some reasons why buying off-plan properties in Dubai is still a worthwhile investment:

A buyer’s market
According to news reports, property prices are projected to drop between 10-15 percent this year. Occasional declines and fluctuations are typical in the property market. However, this would suggest that it’s currently a good time for buyers to invest. Seasoned property investors know that the ideal time to buy is at the bottom of the market cycle when softening prices give potential buyers stronger leverage in property deals.

Take advantage of generous payment plans while they are still available
Attractive offers from developers on post-handover payment plans was largely responsible for the surge in off-plan property sales. As payments for these properties are staggered over the course of a few years, buyers with limited financial capacity need not wait for market prices to be better aligned with their finances. This has given buyers one of the most compelling reasons to look into property investment. While these payment plans are expected to continue well into this year, there are predictions that developers might scale back on offering these schemes eventually. As such, now would be an opportune time to invest while these payment plans are still available.

Affordability is set to become the newest trend
Off-plan sales in the luxury market contributed to much of the sector’s strong performance last year. However, there has been a recent shift in developers’ strategy from high-end luxury to affordable and mid-class off-plan projects. This is evidenced by the rise of such residential communities in Jumeirah Village Circle and Dubai South. As multi-cultural transplants and economic migrants continue to flock to Dubai, there is a consistent and steady demand for affordable property in the foreseeable future. The emerging trend of affordability is expected to address the growing demand from this burgeoning, underserved market segment. For savvy property investors looking to dip their toes in the rental sector, it can be a potentially lucrative investment especially if the area is projected to be a prime rental market with high rental yield.

As with every investment opportunity, the key to making confident decisions is to arm yourself with information. Of course, it would be in your best interest to talk to professionals who have the expertise and experience to guide you through the complexities of property investment.