When it comes to property purchases, buyers often face a choice: investing in off-plan properties or ready-to-move-in properties?
Firstly, off-plan properties refer to those that are yet to be constructed or are still under development. One of the primary advantages of buying off-plan is the relatively lower price. Since the property is not yet completed, developers usually offer more flexible payment plans, making the purchase more manageable.
Additionally, buying off-plan can yield higher return potential. As the construction progresses and the area develops, the property's value may increase, providing investors with a good return on investment.
However, purchasing off-plan properties comes with certain risks and challenges. Firstly, buyers need to have sufficient patience and time since they must wait for some time before moving in or realizing their investment. Construction progress, quality issues, and construction delays can introduce uncertainties to buying off-plan.
In contrast, ready-to-move-in properties are those that have been completed and are immediately available for occupancy. One of the main advantages of buying ready properties is immediacy. Buyers can move in or rent out units immediately without waiting for the construction process to conclude. Purchasing ready properties can also mitigate some of the risks faced by off-plan properties, such as construction delays and quality concerns.
However, buying ready properties is not common in Dubai. This is because, compared to off-plan properties, ready properties generally have higher prices and relatively lower return rates. Many investors prefer off-plan purchases to access higher return potential. Additionally, developers in the Dubai market rarely sell existing inventory as they often have substantial off-plan stock.
Despite this, Dubai's ready property market has gained attention in recent years. Some private developers have started offering projects that are ready for immediate occupancy to meet the demand for instant move-in or rental units from residents and investors. These projects typically feature flexible payment plans, allowing buyers to move in with a lower down payment and pay the balance monthly.
The Dubai government has also enhanced trust in the local real estate market through various regulations and measures. This may lead to an increased demand for ready properties in the coming years. However, currently, off-plan properties remain the preferred choice for Dubai residents and buyers.
In the Dubai real estate market, Jumeirah Village Circle (JVC), Business Bay, and International City are among the most popular locations for the sale of ready properties. For residential villas and townhouses, Al Furjan and Mohammed Bin Rashid City are also highly sought after.
