Off-plan properties are often priced lower than used properties and may yield higher returns once completed.
Investing in Dubai’s off-plan real estate market right now can be a wise decision for investors, and it is expected to remain so in the coming years. Here are some reasons why:
1. Greater Affordability: Off-plan properties in Dubai are often more affordable than ready properties, as developers offer competitive prices and attractive payment plans. These plans allow investors to make small down payments and pay the rest over extended periods. In 2023, the off-plan property market in Dubai is expected to continue to offer affordable options to investors. Many developers are offering post-handover and 1% monthly payment plan options, making it even easier for investors to enter the market.
2. Strong Rental Yields: According to a recent report by Bayut, Dubai’s rental yields for off-plan properties are among the highest in the world, averaging around 7%-8%. This means that investors can expect to see strong returns on their investment through rental income.
3. Developing Infrastructure: Dubai is known for its constant development and expansion, which means that the infrastructure in the city is constantly being improved and expanded. This is likely to attract more investors and tenants, making off-plan properties a potentially lucrative investment option.
4. Growing Demand: Dubai’s real estate sector has been witnessing a steady increase in demand, with more investors and expats showing interest in buying properties. This trend is likely to continue in the coming years, making off-plan properties a popular choice among investors.
5. Positive Economic Outlook: According to the International Monetary Fund (IMF), the UAE’s economy is expected to grow by 2.5% in 2023, which is likely to have a positive impact on the real estate market. This, in turn, can drive up the value of off-plan properties, offering investors a potentially profitable investment opportunity.
According to a report by Property Monitor, the off-plan market in Dubai recorded a total of 12,881 transactions worth AED 17.75 billion in 2020. In 2023, it is expected that the off-plan market will continue to grow, offering investors a range of affordable and potentially lucrative investment options.
If you are interested in investing in off-plan or ready residential or commercial properties in Dubai, 4C Homes can help. Contact our team of real estate agents today and we’ll be happy to assist you with any questions and requirements you may have. We also have an in-house mortgage team that can help you with all your mortgage needs. Don’t forget to follow us on Facebook, LinkedIn, and Instagram to stay updated with the latest developments in the industry.