Monthly Archive: February 2017

Why invest in Dubai off plan?

Nowadays, we happen to hear the words ‘off plan property’ a lot, but what does it actually mean? How is it different from a normal real estate development and why should investors and first-time buyers take an interest in it?

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Off-plan property means a property that can be purchased before the construction has even been completed. After the announcement of the World Expo, Dubai developers released several off plan projects that are expected to be completed by the year 2020. Buying a property that hasn’t been developed sounds like a risky investment, but the advantages outweigh the cons. Here are some reasons why you should invest in Dubai off plan.

The Price Difference:

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With attractive offers and feasible payment plans, the overall price of a Dubai off plan property becomes a lot lower than a constructed development. Investors, and especially first-time buyers can take advantage of such ambitious projects being offered at lower prices. With the abundance of ambitious projects being announced every month, property developers provide competitive payment plans that even go beyond 40% post-handover, which is a major advantage to the investors of these properties.

RERA Laws:

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RERA or the Real Estate Regulation Authority and the Dubai Land Department (DLD) have implemented strict laws to safeguard the rights of the investors from scam and fraudulent cases. According to latest laws, no developer can advertise any project without owning 100% of the land. Any payments made to the developer will be protected under an ESCROW account held by Dubai Land Department (DLD), of which only 5% can be used by the developer for marketing purposes. The developers will only get further payments after the DLD certifies that the development has reached the required construction percentage. If a developer fails to follow any of the above requirements then the investor can file an arbitration case against the developers and get a full refund with interest.

The Variety of Projects:

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There are several types of projects that can leave an investor spoilt for choice. Whether they choose to buy a property within the central city or purchase real estate in Dubai’s outskirt communities, today’s Dubai property developers have something for everyone. Buyers can even choose to purchase a high-end project, or to invest in affordable housing.

Capital Gains

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One of the biggest advantages for buyers who invested in off plan property is that once the project is completed and ready for handover, its market value shoots up. Those who invested during the off plan stage will be able to enjoy the capital gains and a high return on investment (ROI) that will surpass the original investors’ payment.

With the rise of success and stability in the market, developers and property agencies encourage first-time buyers to invest in Dubai off plan properties. Leading real estate brokers, Driven Properties is one such agency that has special off plan consultants who can assist and guide all prospective buyers in attaining an ideal investment that suits their specific needs.

What Makes A Dubai Property Valuable?

When a client buys a new home or sells their old one, the first thing they need to understand is the probable value of which the particular Dubai property stands at. It isn’t possible to deduct an accurate amount with the constantly changing market trends; however, there are several aspects that help determine how much a property is worth. We found out the four essential factors that make a property valuable.

1- Location

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“Location, location, location…” This saying holds especially true when dealing with Dubai real estate. The location of a property can make a large difference in its market value. An apartment in Sharjah will cost approximately 30% lesser compared to the cost of an apartment in Dubai. An average two-bedroom apartment cost in an expensive area of Sharjah amounts up to AED 4,188 per month, whereas an average two-bedroom apartment cost in an expensive area of Dubai will be approximately AED 7,738 per month. Furthermore, an area that has grand city views, a nearby beach, or an apartment in an urban district will have a high demand and a high price.

2- Size of the Dubai Property

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The overall size is the second most important factor for figuring the net worth of a Dubai property. This includes the number of rooms and the total size area of the unit. More clients will want a home that is large in size with spacious interiors than an apartment that feels cramped and has limited space. Naturally, a 1000 square feet, two bedroom apartment will have a higher value than a one bedroom apartment with a total area size of 750 square feet.

3- Amenities

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Does the property of interest have a maid’s room, 24-hour security, a gym or a pool? These added amenities can increase the rate of the property. Most of the time customers may find the perfect apartment in a good location, but not having the necessary amenities such as proper car parking or built in wardrobes, and kitchen appliances can affect their decision of buying or renting that property.

4- Community

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Many developments and residential districts in Dubai feature their own educational institutions, healthcare facilities, fitness & sports centers, and social hotspots. This can have a high impact on property value because residents don’t have to travel long distances to avail these services. Distinguished areas such as Arabian Ranches, Dubai Investment Park (DIP), Dubai Sports City, etc. have their own schools, clinics, and training centers within the community.

Other than the above-mentioned factors there are other elements that can affect Dubai property prices such as the general economic market trend, age and condition of the property, and the popularity of an area.

Among our various services, Driven Properties also offer a comparative market analysis service which is completely free of cost to clients who want to have an approximate evaluation of how much a particular property is worth.

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