It is exactly what it sounds like. Something of a structure or a plan that has been laid out but still to be constructed. Off-plan property is normally presented to the customers as a pre-construction plan with all the information by the real estate developers for the early adopters so that the purchases can secure much better financial terms from their lenders.
Big develops like Emaar, Damac, Dubai Properties & Danube present their upcoming plans with full details of location, apartment or villa design, dimensions & colors, amenities and features, floor plans and payment plans. A payment plan is normally showing installments of how it will take place during the session of construction till the handover. It could be a 50/50 plan in which 50 percent is during construction and 50 is post-handover. Also a monthly installment with a small percentage of booking. Floor plans are normally to show the plot size as a whole and built-up size for allotted living capacity. For example; Size of rooms and dimensions, a total size of the unit, numbers of beds and bathrooms, size of balcony and room placements.
In Dubai, there is a dire need of apartment buildings, villa, and living capacities, so developers have to present plans earlier for the maximum booking with complete knowledge of what is coming to build up trust and make precious investments secure.
There is a benefit in purchasing off-plans as they are offered on around 30 percent lower prices than the ready ones. The prices fluctuate upwards when a project closes its distance towards competition.
Also, there is a benefit of purchasing newer properties with fresh units and latest facilities. Developers normally present luring offers to buyers with increasingly attractive and flexible payment plans.
Aggressive marketing is done on such plans with outstanding offers like; 5% to book, Pay 10% and move in or 1% monthly payment plans, beachfront community, golf course view etc.
Off plans are best for investing as they are offered at a lower price, they are commenced with latest upgrades and interiors. People are mostly more attracted to them so ROI is always high on them. ROI is basically return on investments. Plus one can set their own set of features in a limited set of choices.
Buying an off-plan property also let you choose between your desired locations as hundreds of plans are in progress even as we speak now. Instead of a ready property, in which the features are already settled and there is no opportunity to change it according to your requirements and you just have to settle for the offer as it is. Well, to avoid such thing, one must have their eyes upon off-plans.
How are you buying off-plan matters a lot. Are you buying as an investor or end-user will bring different consequences. If you are looking for capital appreciation primarily, then off-plan projects are certainly a strong consideration as gains tend to be high when buying off-plan properties. Your intention as a buyer should be looking for the background of the developer, research for amenities and facilities, check through the plans of booking and handovers and have a good eye on floor plans. Buying as an end-user will give you a flexibility of payments. As you don’t have to pay a huge amount unlike in ready properties. While as an investor will gain higher ROI as people are more attracted to off-plans. It is important to note that for an off-plan property to become attractive, there must be a high level of other infrastructure in the immediate area such as a new university, express roads, etc. either already built or due to be built within the next few years.
In today’s Dubai market of 2018, off-plans have become the main focus for both developers and agents. Due to the demand because of attractive offers, people are more tend to trust off-plans where they can customize their living styles. Around 2021, we will see Dubai with above 50 new projects offering 30,000+ off-plan units with generous booking rates and top-notch amenities. Off-plan projects in Dubai now account an approx. of 80% of total real estate market transactions.