Reasons Why Off-plan Properties Are in Great Demand?
Here are some reasons why off-plan properties are in demand:
Growth Opportunities
Dubai Marina is a prime location for off-plan properties in Dubai, offering investors numerous growth opportunities. Dubai Marina was the most searched area for properties in Dubai in 2023.
Dubai Marina is a popular residential and tourist destination with many world-class amenities and attractions, such as the Dubai Marina Mall, The Walk at JBR, and the Dubai Marina Yacht Club. This high demand for rental properties has translated into strong rental yields for investors, with rental yields for Dubai Marina apartments averaging 7.04%.
Good for a Rapidly Growing Population
Properties in Dubai Marina offer an attractive investment opportunity for those looking to cater to a rapidly growing population. Dubai's population is expected to grow from 9.4 million in 2022 to 11.1 million by 2030. This rapid growth is fueled by the city's diverse economy, growing job market, and welcoming business environment that attracts expatriates worldwide.
Off-plan properties in Dubai Marina are an attractive investment option for those looking to cater to this growing population, as they offer a range of benefits. For example, properties are often available at lower prices than completed properties, which makes them more affordable for investors. Additionally, properties offer a higher potential return on investment, as they often appreciate before completion.
High Scope of Development
The real estate market in Dubai Marina has seen significant growth in recent years, especially in off-plan properties. Off-plan properties refer to properties still under construction, and buyers purchase them before completion, often at a lower price than the market value.
This surge in property transactions highlights the high demand for properties in Dubai Marina and investors' confidence in the real estate market. Due to the lower price of off-plan properties, investors can purchase them at a discount and sell them at a higher price once the construction is complete.
Additionally, properties in Dubai Marina often come with attractive payment plans, making them more accessible to investors.
Favorable Regulations by Government
Dubai Marina is one of the UAE's most popular destinations for property buyers. In recent years, the Dubai government has implemented several favorable regulations to encourage investment in the property market in Dubai Marina.
One of the most significant changes was the introduction of the Real Estate Regulatory Authority (RERA) in 2016. RERA is responsible for regulating and monitoring the real estate industry in Dubai, ensuring that developers comply with laws and regulations.
The Dubai government has also introduced laws that protect investors from potential risks associated with off-plan property purchases. Developers must now register their projects with RERA and guarantee buyers that their investments are secure. As a result of these favorable regulations, the property market in Dubai Marina has seen significant growth in recent years.
High Rental Yields
Dubai Marina is a popular waterfront community in Dubai known for its luxurious lifestyle and world-class amenities. It is also a prime location for real estate investment, particularly in off-plan properties.
Properties refer to properties that are still under construction or development and are yet to be completed. Dubai Marina is high rental yields that investors can earn. The average rental yield for off-plan properties in Dubai Marina is around 9.19%, higher than that for completed properties in the same area.
Investors can also benefit from the flexible payment plans developers offer for off-plan properties, making investing in high-end properties in Dubai Marina easier. Furthermore, the capital appreciation potential of off-plan properties in Dubai Marina is also high, allowing investors to earn a significant return on their investment in the long run.
Lower Prices
The property market in Dubai has witnessed a decline in prices in recent years, creating a favorable environment for property buyers and investors. The COVID-19 pandemic has also affected the decline of off-plan property prices in Dubai. The pandemic has affected the demand for property in the region, resulting in lower prices.
However, the price decline has also increased interest from property buyers and investors, leading to increased sales in the off-plan market. The current market conditions in Dubai present a unique opportunity for property buyers and investors to purchase off-plan properties at more affordable prices.
However, as with any investment, it is important to conduct thorough research and seek professional advice before making any decisions.
Flexible Payment Plans
Properties are properties that are sold before construction is completed. Dubai is a hub for off-plan properties, with various options available for buyers. One of the benefits of purchasing an off-plan property in Dubai is the flexible payment plans that developers offer.
Flexible payment plans can include staggered payments, where the buyer pays a percentage of the total price at different stages of construction. For example, a buyer may pay 10% at the time of booking, 20% during construction, and 70% upon completion.
Flexible payment plans have become increasingly popular in Dubai. Developers have also been offering longer payment plans to attract buyers. This reflects the current economic climate, where buyers may be more hesitant to make large purchases.