Why Invest In Off Plan
why off- plan properties provide a 'hot strategy' for investors?
Off-plan properties are one of the hottest strategies right now.
There are many advantages to why off-plan property investments in the UK and Dubai are one of the best countries to invest off-plan in.
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Instant Equity If invested in the right development
Off-plan investing is essentially a numerical strategy. You can secure a property at the cheapest rate during its construction phase and by the time it's completed, its value has often surged and can be sold at a capital appreciation. My Dubai investors have experienced this after an exciting launch of an off-plan project has happened within a reputable developer and has near enough sold out.
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High Demand Locations
The newest off-plan developments are thriving in cities with vast regeneration areas and as more amenities are created and easily accessible to new home owners within the area, the more desirable the location becomes which results in an increase to the properties value. This is positive news for investors investing in the UK. As for Dubai it is forever growing and building new unique residential properties with the government target of 60% growth in population and with supply and demand at play, investors are experiencing high short term capital appreciations, especially with the high end luxury branded residences which had an increase of 64.4BN of investment in the summer year of 2023. 53% of HNWI buyers focussed on acquiring ‘recently built/completed’ homes in Dubai. It is strongest among those with a net worth of over US $10 million (61%), as well as 71% of HNWI from East Asia. Overall demand for off-plan purchases is relatively low at just 10% among global HNWI. With a rise in the volume of product launches over the last 12 to 18 months, as developers respond to the stable and sustained demand for homes, the volume of off-plan homes sold has been unsurprisingly rising. Indeed, during H1, off-plan sales, at AED 65.7 billion, have edged out sales for ready homes (AED 64.4 billion) (Knight Frank report 2023).
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Quality Tenants
Securing the right tenants is crucial in property investment. Off-plan developments often attract professional corporate tenants who are willing to pay a premium, reducing the likelihood of dealing with troublesome renters.
In Dubai it is often the case that the annual rent is paid in full to the landlord of which the landlord has 90 days prior to rent renewal to increase the rent in accordance to the rental calculator.
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Serviced Accommodation
If you prefer to be hassle free, serviced accommodation is also an option with off plan. Some companies offer fully compliant short-term rentals, leading to increased profits.
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Developer Reliability
Choosing the right developer is paramount to safeguard your investment. Reputable developers provide client money protection by looking at previous delivered developments so that you have a piece of mind that the project will be delivered on time with proven track record and also with the added protection with paying into an escrow account, so for whatever reason the development can not continue to complete which is very rare in todays market, your money is protected and refundable. Off-plan properties continue to be an attractive proposition for investors of all experience levels, providing purchasers with a range of benefits, off-plan properties can help mitigate risks by spreading investment costs and benefit from flexible payment plans that suit you and in return offering a positive equity gain for you.
