Benefits of off plan investment in Dubai

In the last few decades, the city of Dubai has risen to become the most preferred investment destination in the world. The growing economy, sound political climate, and lucrative return on investment are making the city attract individuals to invest their hard-earned money. Real estate is one of the most prominent sectors of the economy. In particular, off plan properties in Dubai have been enjoying immense popularity amongst investors. This trend is expected to continue in the coming years as the demand for houses continues to increase.

Here are benefits of off-plan properties

1. Affordability and friendly payment terms

One of the biggest benefits of off-plan properties is that they are offered at lower prices. The attractive price makes them more affordable and practical compared to completed projects. On the other hand, investors enjoy flexible payment plans that are spread over a certain period of time.

Since there are numerous projects initiated every month, developers are competing on price and payment plans. In fact, some developers offer as low as 1% per month payment term.  Emaar Beachfront, Dubai Creek Beach, Port de La Mer are few most prominent off plan projects in Dubai.

2. High ROI

Dubai is undoubtedly one of the most rapidly growing cities in the world. As a result, the real estate industry is promising a high return on investment (ROI). Apart from the low prices, the property’s value also increases during the construction phase. While you are paying off as agreed with the developer, you could witness a rise in the market value of the property.

3. High rental yields

The high rental yields are one of the key drivers of the real estate industry in Dubai. As the population of the city continues to surge, the demand for houses continues to increase. So, if you are looking forward to investing in off-plan properties in Dubai, you are likely to earn decent rental incomes.

4. Regulated environment

Investing in off-plan properties is considered to be very risky. In this regard, the government of Dubai through the Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD) has initiated laws to protect investors against delays, cancellation, and frauds.

One such law is that developers must completely own the land where the property is located. Also, transactions must be made through banks that have been approved by the DLD. Furthermore, developers can only sell properties that are 50% complete and above.

The DAMAC Towers by Paramount Hotels & Resorts is one of the most profitable projects in Dubai right now. It is a mixture of a Hollywood-themed hotel and apartments. Rising to over 270meters, the tower has 69 distinctive storeys that offer panoramic scenic views, making it an ideal project to invest in.