Off Plan Properties in Dubai

Developer:DUBAI PROPERTIES

MUDON AL RANIM

Providing a sense of calm and serenity, Mudon Al Ranim is ideal for those seeking a safe and relaxed haven to raise a fa...

3 & 4 Bedrooms 2220 to 2980 sqft
Price Starting From 1,900,000

Developer:Damac

CAVALLI ESTATES

The Impeccable luxurious 6 to 7 BEDROOMS VILLAS with a world-class amenities branded & designed by Roberto Cavalli, the ...

6 to 7 Bedrooms 11,317.7 sqft
Price Starting From 19,934,000

Developer:NAKHEEL

JEBEL ALI VILLAGE

Introducing the idyllic gated sanctuary luxurious 3 & 4 Bedroom Townhouses & Villas in Dubai at Jebel Ali Village united...

3 & 4 Bedrooms 2882-3386 sqft
Price Starting From 2,540,000

Developer:Damac

PORTOFINO - DAMAC LA

Introducing the 4, 5 & 7 Bedrooms Italian Luxury Villa at PORTOFINO, the newest Community in DAMAC LAGOONS which embrace...

4,5&7 Bedrooms 2277.43 sqft
Price Starting From 1,964,000

Developer:NAKHEEL

CANAL FRONT RESIDENC

Limited Offer! The Newest Launched 2 and 3 Bedrooms Apartment in CANAL FRONT RESIDENCES by Meydan at the Dubai Water Can...

2 & 3 BEDROOMS 1495-1928 sqft
Price Starting From 3,200,000

Developer:EMAAR

EXPO GOLF VILLAS

Following five sold-out phases comes the sixth phase of Dubai’s most in-demand villas. Expo Golf Villas 6 comprises el...

3 - 4 Bedrooms 2052-2401 sqft
Price Starting From 1,470,000

Developer:MERAAS HOLDING

NAD AL SHEBA

Introducing Nad Al Sheba Gardens, a neighbourhood coveted by a nostalgic design philosophy, creating a unique place with...

4 & 5 Bedrooms 2618-5640 sqft
Price Starting From 3,200,000

Developer:EMAAR

TALIA at the VALLEY

TALIA at The Valley, is the third community of 328 townhomes, and is an extension of the same principles driving, Nara, ...

3 & 4 Bedrooms 1862 - 2248 sqft
Price Starting From 1,450,000

Developer:Damac

THE LEGENDS - DAMAC

In Damac Hills Introducing, the 3, 4, 5, 6 & 7 BEDROOMS Luxury Villas at Golf living takes you on a new course at the LE...

3,4,5,6&7 Bedrooms 1982-4556 sqft
Price Starting From 1,872,000

Developer:NAKHEEL

CANAL FRONT RESIDENC

A spectacular ensemble of one-, two- and three-bedroom apartments with scenic views offers the perfect setting to transf...

2 & 3 Bedrooms 1408 Sqft
Price Starting From 2,724,800

Developer:Select Group Developer

PENINSULA ONE

Peninsula is thoughtfully designed, and strategically located in the heart of Business Bay. The Peninsula residences wil...

1,2 & 3 Bedrooms 615 - 2996 sqft
Price Starting From 1,299,600

Developer:Select Group Developer

15 NORTHSIDE BUSINES

Ideally nestled alongside the scenic Dubai Canal, 15 Northside is the fifteenth development by pioneering and award-winn...

Retail, 1&2 Bedrooms 661-1977sqft
Price Starting From 1,050,000

Developer:Damac

COSTA BRAVA - DAMAC

Hidden away from the hustle and bustle is DAMAC LAGOONS - a community where enchanting homes surround azure blue lagoons...

4 to 6 Bedrooms 2012sqft
Price Starting From 1,530,000

Developer:Damac

DAMAC LAGOONS

Experience of the Eight Wonders of the Mediterranean. Some of the most beautiful cities come alive in this stunning com...

3,4,5Bedrooms 2012sqft
Price Starting From 1,530,000

Developer:NAKHEEL

LAGOON VIEWS - D1 (D

Live beside the World's Largest Man-made Crystal LAGOON Spreading over 7Km, this is the world's largest man-made Crystal...

1-5BR+Penthouse 853-5891sqft
Price Starting From 1,700,000

Developer:EMAAR

NARA at the VALLEY

Introducing the NARA at the VALLEY is a single-row 3 & 4 Townhouses gated community which designed for Happiness brimmin...

3 - 4 Bedrooms 2097-249 sqft
Price Starting From 1,340,000

Developer:MAJID AL FUTTAIM

ALAYA VILLAS at Tila

ALAYA VILLAS is a latest three-Story Stand alone Luxury villas with 4 to 6 Bedroom in Tilal Al Ghaf where have a stunnin...

4-6 bedrooms 5106 - 9237sqft
Price Starting From 7,000,000

Developer:warsan

SAAM VEGA

SAAM VEGA is Dubai first hotel Apartment to be shaped like a world Wonder, it brings to life an epic wonder from one of ...

Studio & 1 Bedroom 398 - 838 sqft
Price Starting From 640,000

Developer:DUBAI PROPERTIES

LA ROSA III

LA ROSA III at VILLANOVA is the newest project launched by Dubai Properties due to successful and high Demand communitie...

3 & 4 Bedrooms 1,946 - 2,328 sqft
Price Starting From 1,270,000

Developer:Damac

ZADA RESIDENCE

Nothing is Impossible Now, owning a Luxury apartment in the heart of the city is completely possible - become part of th...

1 Bedroom 345.95 sqft
Price Starting From 699,999

Developer:warsan

ELYSEE by PANTHEON

ELYSEE is located in the heart of Jumeirah Beach Circle, Dubai and newest and largest project by Pantheon Development up...

Studio,1,2&3 Bedrooms 402 to 1,933 sqft
Price Starting From 522,429

Developer:NASHAMA

UNA-TOWN SQUARE

UNA has been created for the new generation of millennial's, fast-paced entrepreneurs and creative minds longing for a c...

Studio & 1 Bedroom 345.95 sqft
Price Starting From 444,888

Developer:Deyaar

Bella Rose Apartment

BELLA ROSE APARTMENT is a single 18 storey residential building developed by DEYAAR. It is located in Dubai Science Par...

Studio,1BR 417 - 623 sqft
Price Starting From 493,314

Developer:MAJID AL FUTTAIM

ELAN Tilal Al Ghaf

Beautiful lagoon within the City designed as an exclusive gated enclave within Tilal Al Ghaf, Elan provides the perfect ...

3BR & 4BR 2152 - 2354 sqft
Price Starting From 1,259,000

Developer:MAG

MAG CITY Townhouse

MAG City heralds a new dawn in urban living. A city with hope and prosperity at every corner. A city where miles of ver...

2,3 & 4BR 1750 - 2930 Sqft
Price Starting From 1,099,000
https://sevenskys.ae/dubai/apartments-for-rent

 

A lucrative investment: Off Plan Properties in Dubai

 

Off plan properties make up a huge portion of Dubai’s real estate market. The preference for off plan properties is much higher in Dubai as compared to any other part of the world. Market activity, availability of finances and active stakeholders are the main reasons as to why investors opt for off plan properties in Dubai.

 

Unlike the already-developed properties, these properties involve a higher risk factor. The uncertainty pertaining to the successful completion of an off plan project is an inevitable part of the market but this has not deterred the investors. Off plan properties in Dubai are actively sought. As of 2017, almost 78% of the total market transactions in Dubai were that of off plan properties. This percentage hints on investor’s confidence and market liquidity.

For developers, off plan market is a preferred choice for collecting the desired level of finances. Selling off plan units also provides a buffer against unexpected competition in future.

 

Advantages of off plan properties:

The most prominent feature of an off plan property is the discounted price. Developers offer lower prices to early buyers. Generally, the price tends to rise as the completion date closes; providing capital gains to the buyers if they plan to resell the property. Even in case of buy and hold strategy, the end-user benefits because they had purchased the property with minimal down payment.

 In addition to the discounted price, the payment schedule is also a decisive factor in off plan properties trade. In the past, developers in Dubai offered an 80/ 20 payment schedule whereby 80% of the total payment of the unit was payable during the construction period and 20% was payable at the time of completion or handover. But recently the trend has changed. Now, the developers are pursuing aggressive marketing strategies to attract clients for off plan properties in Dubai. One such example is the 50/ 50 payment schedule whereby 50 % of the cost is payable during construction and 50% is payable on completion. Stats about the performance of off plan market in 2017 show that this strategy has been very effective.

 

Off Plan Market in 2017:

2017 marked a successful year for the off plan market in Dubai. Despite higher risk factor, the off plan properties’ sale figures continued to soar. A major reason for this growth in sales were the generous payment plans put forth by the developers. According to an article by Khaleej Times, till November 2017 almost 30,000 off plan units were launched under the umbrella of 52 mega projects in Dubai. The inflows generated by the off plan projects have been massive as well. In 2017 alone, Dubai received Dh37.6 billion investment in its real estate residential market out of which Dh23.5 billion were bagged by the off plan properties.

The overall performance of Dubai’s off plan market has been improving over the years but there has been a trade-off. The rentals market plummeted due to the growing preference for off plan properties in Dubai. Landlords have been trying to minimize this trend by offering lesser rents with added value like furnishing.

The growing occupancy ratio of sub-urban areas in Dubai is another noticeable trend. A few years back, Dubai’s investors preferred the main city areas like Dubai Marina but now the trend has started to change. On one side, the growing population has pushed the demand graph and on the other hand the softening rentals have facilitated the buyers. In a nutshell, Dubai’s real estate has evolved for the betterment of the buyers as well as sellers.

 

Off plan vs. ready property:

Over the years, Dubai real estate has been successful in wining investor’s trust through timely completion of off plan projects. Due to its significance as a metropolitan state on the world map, Dubai has successfully attracted many local and foreign individual and corporate investors who have played a vital role in keeping the real estate market active. This, along with the presence of a proper regulatory framework, has pushed the Dubai real estate market towards maturity. A few decades ago, Dubai’s real estate market was opposite to what it is today. Acres of undeveloped land, poor road structure and a privilege business class was what defined Dubai at that time. But with the passage of time, this small state attracted rich investors from the region who in-turn invested in developing the local infrastructure. Soon Dubai witnessed the development of one of the biggest and busiest international airport along with many regulatory reforms.

One such reform was the development of Real Estate Regulatory Authority (RERA) in 2007. Within a decade of its inception, RERA has successfully resolved numerous landlord-tenant issues and ensured a healthy atmosphere for prospective investors. Before publicizing a project, developers of off-plan projects on freehold land are required by law to obtain a commercial/ professional license from the Department of Economic Development and set up an escrow account for receiving the payments. Such procedures have helped reduce information asymmetry between the buyers and developers.

Famous Off Plan Projects:

According to the 2017 stats provided by Global Capital Partner (GCP), Dubai Downtown and Dubai South off plan properties are rated as the most traded properties with a volume of 1,844 and 1,843 units respectively in this year. The third most famous off plan properties in Dubai are those located in Jumeirah Village Circle (JVC) with a trade volume of 1779 units.

Minimizing risk factor in off plan properties:

Risk is an inherent component of off plan properties trade. This risk can be mitigated by due diligence. One way is to opt for off plan properties which have a payment schedule based on construction milestones instead of time period. This helps to minimize risk factor associated with delayed completion of an off plan project. Another risk is the quality concern. Deceitful developers may portray the off plan projects with exaggerated features. To avoid such risk, investors should opt for projects which are properly licensed and are developed by renowned developers. Unknown developers may overlook quality for timely completion but a well-established developer never compromises on brand image.