Are you considering investing in properties in the bustling city of Dubai but need help deciding whether to buy off-plan or resale?
Firstly, Dubai's real estate market is one of the most dynamic in the world, with new projects launching back to back. As a result, it can take some time to know which option is the best fit for you.
What is Off-Plan Property?
Off-plan property is an unconstructed property purchased directly from a developer. It's a property that is yet to be built or, in some cases, is in the early stages of being built.
To purchase this type of property, buyers rely on brochures and other marketing materials to learn about the project and the exact property they are buying. Purchase is usually made with a 10-20% down payment before completion and the rest after. The terms and amounts vary per project and developer in Dubai.
Investing in Dubai property is a big decision, and understanding each option's advantages and disadvantages is significant. Off-plan properties offer lower prices and customisation options, while resale properties offer immediate ownership and established communities. However, off-plan properties can come with the risk of delayed completion or potential bankruptcy. Resale properties may have limited customisation options and appreciate less than off-plan properties.
Here are the advantages and disadvantages of each to help you find the right choice.
- Immediate Ownership: With a resale property, buyers can move in as soon as possible, or an investor can put it up for rent once the transaction is completed. There's no waiting around for construction to finish.
- Established Communities: Resale properties are often located in established communities, which means that buyers have access to amenities such as parks, schools, and shops.
- Physical Structure: Resale properties have a physical structure, so the buyers can see what they're getting before they buy.
- Availability of Mortgages: These properties are eligible for mortgages, which makes the process of paying for them more convenient.
- Higher Prices: Resale properties are more expensive than off-plan properties as they have already been built and are ready to move in.
- Limited Customisation: Buyers cannot customise the property as much as they can with off-plan properties. They may have to live with the existing finishes and layout.
- Depreciation: Compared to off-plan properties, resale properties could appreciate less, indicating that buyers might be unable to resell the home for a profit.
So, which one is better?
It depends on your personal preferences and circumstances. If you're on a tight budget and willing to take a risk, off-plan properties may be the way to go. However, resale properties may be a better fit if you want to move in immediately and have a more established community, resale properties may be a better fit.
Ultimately, it's essential to research and weighs each option's pros and cons before deciding. Dubai is a fast-paced city with a constantly evolving real estate market, so staying informed and up-to-date is essential.
In conclusion, both off-plan and resale properties have their advantages and disadvantages. It comes down to personal preference and circumstances, whichever option you choose.
For more information on the property market, give us a call today. You can also checkout our Off-plan projects as well as re-sale properties for sale & rent.