Dubai real estate market plays a huge role in helping the city experience a steadily growing economy. Dubai real estate market itself offers tremendous opportunities to property buyers looking to get a substantial return. And when it comes to buying a property in Dubai, villas typically help investors get more return than apartments and townhouses.
If you too are interested in buying a villa in Dubai, you will see that two types of villas for sale in Dubai are available. These are off-plan villas and ready villas.
In this post, you will learn about the benefits of buying an off-plan villa in Dubai.
Purchase Price Might Be Substantially Lower Than Average
One major benefit of buying an off-plan villa is that you may be able to secure the purchase at a value substantially below the average market value. Sometimes, this happens because the developer wants to exhibit a particular level of sales before marketing the project.
Sometimes, the developer may also want to sell as many villas as possible before the completion of the project. You may also get some additional discounts when you purchase an off-plan villa. However, to get these discounts, it is suggested that you should search for your villa through a leading real estate agency like fäm Properties.
You May Be Able To Attain Strong Capital Growth
Those who purchase off-plan properties often benefit from property price appreciation in the location of the properties. For instance, if you buy an off-plan villa in 2023 and it will be completed in 2025, you will most likely see that its value grows each year. Needless to say, this can add a huge value to the property, considering that you have already purchased it at a price lower than the average market value.
You May Be Able To Re-Sell the Villa before Completion and Make a Good Profit
As mentioned above, the value of your villa will most likely go up before its completion. If you are an investor and want to make a good profit quickly, you can put the villa up for sale and close the deal at a higher value. However, you will gain more capital growth by waiting for the completion of the project.
You May Need To Pay a Small Deposit Amount
When a villa is in the construction phase, you may not need to pay a hefty deposit amount to secure the purchase. And when you are required to pay a small deposit amount, your initial financial burden will be significantly low and you will get enough time to arrange the funds.
Also, depending on the developer, you may be able to make staged payments. This will help you spread the purchase cost while lowering the deposit amount.
You Will Get to See the Construction Phase
One unique benefit of buying an off-plan property is that you get to see the entire construction phase. Many developers provide their off-plan buyers with regular construction updates by sending images and videos. As a result, buyers can closely monitor the phases of the construction and get to know about the build quality.
You May Be Able To Change the Fixtures and Fittings
When you purchase an off-plan property, it should not be difficult to have fixtures and fittings of your choice. And doing this during the construction phase will be hassle-free for you. This is because the developer has already employed electricians, painters, plumbers, etc. full-time. So, you will not need to hire them from a third-party agency.
Your Off-Plan Property Purchase Will Remain Protected
The Dubai real estate market has some rules to safeguard off-plan property buyers. The DLD and RERA put a safe process for these buyers and investors and protect their investments from fraud or scams. Apart from certain guidelines from these authorities, there is the usage of escrow accounts. In escrow accounts, funds are kept in trust whilst multiple parties complete a transaction.
The authorities also monitor the financial stability of the developer(s) and mandate them to give a bank guarantee. This bank guarantee amounts to 20% of the project cost. The objective of this is to get an assurance of the completion of the project.
Things You Need To Consider When Buying an Off-Plan Villa
Here are three important things that you need to consider before finalizing the purchase of an off-plan villa.
- Area of the off-plan villa
- Floor plans
- Estimated duration of project completion
As you can see from the above pointers, buying an off-plan villa can bring you some unmatched benefits. From low initial deposit and significant capital growth to the ability to choose the fixtures and fittings of your choice and more, there will be several benefits that are hard to get when it comes to a ready villa. So, when you are searching for city walk apartments for rent, consider both off-plan and ready properties, and make the final decision as per your requirements and preferences.