Why are off-plan projects becoming more popular?

Dubai has facilities and luxuries, making it a dream location for residents and visitors. This city is a sign of progress and prosperity. Within a short period of 50 years, Dubai turned itself from a desert village to a place of wonder that includes the longest buildings in the world, man-made islands, and lots of other wonders. This city is a beautiful combination of historical heritage and the latest advanced technologies. Due to this rapid growth, this city never moved away from ambitious construction projects.

Dubai As A Real Estate Hub

Dubai is emerging globally as a business hub for different sectors like travel and tourism, AI technology, financial services, and, of course, real estate. In early 2000, investment growth was going steadily but after the government granted permission to foreign investors to buy their property in Dubai, there was a boom in investment in the real estate sector as investors from all over the world were eagerly willing to pour their investment in property in Dubai so eventually, in next 5 years, Dubai will turn itself into the ultimate destination for real estate business.

The charm of Dubai attracts not only visitors and tourists but also accommodates lots of immigrants from all over the world. This increases the demand for real estate and urges people to buy luxury property, boosting investors.

The most important pillar of the real estate business is its off-plan projects.

What Are Off-Plan Projects?

First of all, what are off-plan projects? The projects that are under construction, not completed or the property that is yet not even started, are just on the plan this is also called the blueprint property or the project that is just in the plan of the developer

Off-plan projects are becoming the new trend in Dubai. Lots of investors from all over the world are willing to invest their money in this sector. It has become the new centre of attraction for investors due to its benefits. It is becoming more popular among investors who want to save their hard-earned money to gain more returns in the long term.

Benefits Of Off-Plan Projects

In the last two decades, remarkable growth has been observed in off-plan properties; there are many factors involved. Firstly, developers recognise the need for time as there is a tremendous demand for these properties in the market, which they fulfil by launching new off-plan projects throughout the city. Consequently, there is more competition in the market, which not only enhances the standards of the properties but also gives more and more benefits to the investor. As a result, these projects are becoming more popular day by day

In this article, we will briefly discuss the factors or benefits involved in increasing popularity of the off-plan projects. Wanna know more about Dubai and its upcoming projects, do visit ere homes.

Financial Gain

The major reason behind the popularity of off-plan projects is the financial gains of the buyer. The potential of these properties for capital appreciation even before they are ready to move into. In this way, the buyer can secure their property even at a very low cost but once the property is completed, can earn an increased return on investment ROI

If the market value increases, which mostly happens in the Dubai market, then if the buyer purchased his house which is not completed, it will return more investment than what they had paid even before they moved into the house.

Increase In Population

As time passes, there is a rapid increase in the population of the city As young professionals and families move to the city, there is more need for housing As demand increases, competition also increases and to fulfil the demand, off-plan projects are the best option to accommodate the new residents in the city in future.

Government Policies

The Dubai government has also played a key role in enhancing and maintaining the popularity of off-plan projects by launching new policies in its favour. They take some initiative to secure the investment and overcome fraud and loss. For this, they established:

• Dubai Land Development (DLD)
• Real Estate Regulatory Authority (RERA)

They set the regulations to make these projects more successful and to increase the confidence of the investors.

Rental Yields

The next main source of popularity of these projects is the high rental yield in Dubai. Dubai is becoming the centre of attraction for tourists and business-related people. There is a very high demand for rental properties to accommodate tourists and investors coming from different regions. Investors can fulfil this demand by investing in off-plan projects that generate stable rental income. Rental yields are higher, especially in apartment buildings or hotels when they are new or right after their completion, Their demand is high. Investors can get a premium rental rate as compared to existing properties.

Customisation Option

The other great advantage of investing in off-plan properties is that the buyer can easily choose the layout, finishes, materials, and floor plan that match his taste and budget and go along with his lifestyle and investment objectives. He can also easily select the prime location and preferred designs for his dream property. This level of flexibility is very appealing to those who want to build their home according to their own needs and requirements; they don’t have to compromise on their demands in off-plan property investment.

Easy Reselling

Last but not least, reselling is also a very captivating benefit of this investment. It is quite easy to resell the off-plan property even before its completion and it will give a higher return. It is beneficial in case you need urgent money. But if you wait for its construction to finish, then it will charge higher rates.

Conclusion

So, in this article, we try to cover all the aspects involved in the increasing day-by-day popularity of off-plan projects. These advantages make off-plan properties more convenient than buying the completed building, so this investment is a more effective way to save money for the future and secure the best investment prospects in development. As the city is continuously evolving and developing, there is more advancement in the construction and planning sectors, making off-plan properties more worthy of investment.