Dubai’s real estate market has attracted the attention of investors from big countries in the world and is becoming a global hotspot for property investment. For Americans the off-plan properties in Dubai can be a fantastic chance to step into this thriving market where buyers can get huge returns and rental incomes.
Here we will provide some guidance for better investment opportunities and things to look at before buying a property in Dubai. We will try to help you to make good decisions for property investment.
We have already come to know that the economy of Dubai is on a rise and some studies also showed that the GDP of UAE is going to grow more than 3% in a year by 2024. This continuous rise of the economy of UAE will also benefit the property market in Dubai a lot. For the past more than 1 year the number of property transactions has increased by around 30% from the year 2022 and it was around 118,993 property transactions in 2023.
Americans can get more for their investment in properties which are off-plan. The properties that are not completed are called off-plan properties in Dubai.
Lower Entry Costs: First thing is the pricing of the off-plan properties which is cheaper for up to 20% than the completed properties. This means that you can enter the property market by paying less for off-plan and this makes the property market in Dubai more convenient.
Flexible Payment Plans: Another benefit of buying is the attractive payment plans that come with off-plan properties. Several developers working in Dubai offer long periods of payment for the properties till the possession day. The down payments are also less and sometimes the booking amount can be as low as 5% also. This allows the buyers from America to spread their spending and the investments are more easy to pay with small instalments.
High Increase In The Price: The off-plan property has a better chance of a rise in its pricing because as the neighbourhood of that particular property develops so do selling price increases. It means that if you buy an off-plan house with discounts before the making of your purchased property then you can sell the house at a much higher price in the future.
The off-plan projects can be found in all prime locations of Dubai and every address is good for investment. Here we will see some of the popular locations liked by the buyers in 2024:
Jumeirah Village Circle (JVC): This is one of the developing and affordable neighbourhoods in Dubai where investors can choose from studios, apartments, townhouses, and villas. JVC has been a popular community for foreign families and professionals like Americans. The connectivity of this address to major roads and other big attractions in the city adds to its appeal to the investors from places like America. Here you can find one bedroom modern apartments starting from around USD 272,258 with new projects like Binghatti Phantom and Elitz 3 By Danube which can give you the opportunity to get good rental yields.
Damac Hills 2: This location is known for its different types of properties and smooth connectivity. This community is a better choice for those who are looking for affordable houses having modern comfort that Dubai has to offer. In 2024 the price of a one bedroom house starts from USD 157,910 in projects like ELO 2 and ELO 3 having modern amenities and attractive payment plans which are being built by Damac Properties.
Business Bay: This is one of the commercial locations in Dubai where you can find mid-priced to luxurious properties. This place is visited by a huge number of people and several professionals work here. A good property here can be bought with around USD 462,838 from developers like Binghatti who is now offering different properties in a project like One by Binghatti.
Dubai Investment Park: This area is becoming very popular in 2024 because of the new launches like Damac Riverside Community which will include European style amenities and townhouses. It is going to be a new hub for Americans in Dubai where they can live a grand lifestyle in 4 and 5 bedroom luxurious houses starting from USD 653,419. The price of villas and townhouses in this community is going to rise in the future.
Dubai Science Park: This is a location with a huge collection of housing properties and science style development surrounding the communities. The properties here are very much demanded for rents and self use because of the stunning views and open areas for doing fun and healthy activities. Binghatti Hills 3 is the new launch in this address where the buyers can choose modern houses starting from USD 235,230.
While off-plan properties present exciting opportunities but it is important to study and know more about the property market of Dubai:
Popularity of Developers: Choose a good developer with a history of completing projects on time and within your budget. Check past projects, payment plans provided by the builder, and customer reviews.
Location Type: Check the area’s proximity to amenities, development in the past, and pricing of properties. Look for locations that are planned for the launch of new properties because it will see an increase in the property demand.
Know More About The Project: Try to find out the project plan in detail which includes the offered amenities, payment schedule, possession date, and any exit fees. Also understand the handover process and any other costs involved.
Exit Plan: Investing in property in Dubai is easy but also not so easy at the same time. It is good to take guidance from the professionals or executives who are working in the property market of Dubai. They can help you to choose properties according to your requirements like for rental yields or for resale of the properties when prices are high. Dubai Housing is a good example who has a team of professionals who can guide you to choose the correct property in Dubai.
Dubai’s off-plan properties offer a fantastic opportunity for Americans looking to put their money in other countries and benefit from a growing market. The appeal lies in low entry costs, easy payment plans, and the chances for high returns. However, guidance from a professional is necessary. Investors should select popular developers, do a thorough study of the market, and carefully decide their exit plan. With careful planning and due diligence, American investors can seize this better opportunity presented by Dubai’s off-plan property market.
