How To Select And Get The Best Plot When Investing In Off-Plan Property In Dubai
Demand for new off-plan property in Dubai remains strong. Abundant supply, attractive payment plans, and competition for the investor’s interest have opened up better deals for investors in Dubai’s property market.
As a large number of current house-hunters are owner-occupiers according to industry observers, pressure on pricing is significant and most prospective buyers are depending on finance to enter the market. Off-plan property in Dubai is now the most preferred property product, posing a very real challenge for potential investors.
How do they select and buy the best plot when they choose to invest in an off-plan property in Dubai?
An Evolving Market
One of the keys to securing the best plot in any off-plan property development is to understand what is going on in the market. Currently, leading developers such as Azizi are changing the scope of their Meydan development. Formerly an exclusive high-end part of Dubai’s property strategy, Azizi has introduced an affordable and mid-class apartment component to the development.
Similarly, areas such as Jumeirah Village Circle have also seen an upsurge of developments targeting the affordable end of the spectrum. These developments are attracting buyers from traditionally stronger development areas like the Dubai Marina area, where the prices have largely held their ground.
Some industry observers have commented that there was a 60 percent increase in off-plan real estate transactions in 2017 compared to 2016 with a steep rise in volume and value occurring in the second half of the year.
Clearly, affordability is now a market driver and it is the two and three-bedroom apartments rather than one-bedroom or loft units which are attracting buyers. However, tenants are still having issues such as value for money, quality fittings, size, and internal design features that make the property more livable as part of their checklists.
The Right Property
When searching for an off-plan investment property in Dubai, your primary investment aim is to secure a plot, which will be in continuous demand by tenants, as well as future homebuyers.
The three key factors you should consider before signing on the dotted line are;
- (a) the appropriateness of the development for the average age of residents in the area,
- (b) the development’s proximity to schools,
- (c) shopping malls and transport, and the level of amenities being planned within the overall development.
It is therefore critical to do your due diligence and research the location. Check the broader market to discover the demographics of your preferred location. Establish what is important to this demographic or the demographic the development is targeting with its sales strategy.
What Off-Plan Property In Dubai To Buy?
Buyers have been attracted away from older, completed properties to off-plan alternatives with modern specifications. These specifications include lower price points, attractive payment plans, and possibly the potential for appreciation during the pre-handover build period.
Most investors are targeting a minimum return of six percent on their rental property. Given this target, the dilemma for investors is how to pick a winner from all the plots on offer?
The Golden Rule Of Off-Plan Investing
For any investor looking to acquire the best plot in an off-plan property development in Dubai, there is really only one winning strategy. Invest early!
A buyer who get in on the ground floor of a new property development not only usually enjoys lower prices and more attractive payment options, they also have a greater choice of plots. Naturally, this early commitment comes at the cost of greater risk being attached to the development.
Here are another five features to consider when choosing a plot in an off-plan property in Dubai.
There are a group of potential tenants, which prefer a view in a rental property. If you have a choice of plots, always look seriously at the one which the best views. Views are always a successful selling point for renters. Currently, properties in Dubai that are in high demand are those with the views.
Look for a well-designed floor plan that makes the best use of the available space and minimizes lost space. Bigger bedrooms, well-laid out kitchen areas, and spacious living areas are all key features for future tenants as are large, usable balconies.
Kitchens And Bathroom
Most of us spend a lot of time in our kitchens and bathrooms. So, a plot with well-thought-out kitchens and bathrooms will prove more popular all things being equal than ones dragged down by ill-considered designs.
A largely under-appreciated aspect of sound floor plan design is storage. Storage is one element every tenant looks for. Avoid floor plans which feature multiple, small pokey storage areas. Look for spacious linen cupboards, large shelving areas, or deep cupboards in kitchens. Check the maid’s room can be converted easily for storage. Look for parking spaces with secure storage attached,
Many renters enjoy natural light even if it doesn’t come with expansive views. Check which direction your main windows face. West-facing windows will be baked in the summer sun, while south-facing windows will be shrouded in perpetual shade. Similarly, small windows tend to be claustrophobic while large windows. Particularly, an opening onto a balcony adds to the plot’s light and airy vibe.
Overall, it’s the nice, well-designed, continuously rented, well-fitted out, cash flow-positive properties with smart floor plans that make the most of the space located in a good area prove to be the best investments.
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If you’re looking into an off-plan property in Dubai as an investment, you likely want to earn a solid return on your real estate investment. Likely, one which reflects the risk you are taking and the volatility in the market. Choose a rental property that is constantly in demand by tenants and requires little on-going maintenance. This usually generates the best returns on an off-plan property in Dubai. Make some smart choices upfront on which investment property plot to purchase to accomplish this.