In May 2024, Dubai’s real estate market dramatically increased off-plan sales. Transactions for Off-Plan Properties villas surged by an impressive 209% month-on-month, while off-plan apartment sales grew by 38.55%. This surge reflects growing confidence among investors and residents alike.

Buying and investing in off-plan properties are so in trend nowadays but still, some people don’t like to put or invest their hard-earned money in something that still doesn’t exist. Should you purchase an off-plan property or hold out on buying one still under construction?

Before you put money into real estate or take out a mortgage, you want to be sure you made the appropriate choice. Finding the ideal off-plan property gets challenging with so many possibilities available. How can you tell if your purchase is worth the money?

Use this article to learn what questions to ask to obtain the greatest off-plan property before signing up for one.

What Is Off-Plan Property Buying? 

Off plans are the properties that are just planned not yet exist like other ready properties. Because the value of off-plan buildings is expected to increase once construction is finished, they can be purchased for less than market value, making it an excellent opportunity to purchase real estate at a discount and wait for it to appreciate after construction is finished.

What Happens If the Off-Plan Property Value Drops?

It is crucial to explore your options if you plan to purchase off-plan real estate and wonder what would happen if prices dropped after you made your purchase.

When purchasing off-plan real estate, there is no guarantee that the cost will stay the same going forward; it could go up or down depending on when you buy. If you choose to buy off-plan, you ought to consult a reliable real estate agent first. They will be able to provide advice on what to do if property values drop after buying off the plan.

Only with this knowledge can potential buyers make an informed decision on which of these steps to take; hold it until completion, sell at current prices, or sell at a reduced price.

What Advantages Come with Purchasing Off-Plan Properties?

Buying an off-plan property is among the greatest ways to make a little real estate investment. Investors should expect tremendous returns because these off-plan properties are often found in developing areas with first-rate infrastructure.

Additional advantages of purchasing off-plan real estate include:

• Varying the cost. Compared to other properties on the market, these are sold for less money.
• Greater rates of return at first. Because these projects allow investors to benefit before they are fully constructed and ready for occupancy, these returns are typically higher than those obtained from investing elsewhere.
• Get in touch with us if you need assistance purchasing off-plan real estate, and we’ll walk you through the process!

How Can I Choose the Best Location in The UAE for an Off-Plan Property?

Finding the best off-plan investment possibilities in the UAE is made easier for everyone by TVG Realtors. The main cause of this is the market’s robust and expanding demand for residential real estate. The United Arab Emirates’ population is expanding daily, which drives up housing costs. It is anticipated that this will go on for a while.

How Do I Ensure That the Off Plan Property Is Completed to a High Standard?

Given that off-plan homes are sometimes sold before construction is completed, it may be difficult to determine if the developer is reputable unless a realtor who is knowledgeable about the real estate sector is handling your sale. One must carry out a thorough building survey before buying an off-plan house; moreover, the reputation of the developer needs validation.

We only work with developers who have a proven track record of producing high-quality houses when it comes to our Affordable Home Ownership Solution for off-plan home buyers.

How Can I Tell If a Developer Is Reputable Before Purchasing Their Off-Plan Project?

Getting to know the developer’s history is the first step.  What are the developer’s prior projects, for instance? Did they succeed? How much time ago were they finished? All of these are crucial things to think about.

Furthermore, it is worthwhile to examine the property’s location. The ideal place to invest is one with intriguing architecture and design. It will become more valuable and appealing to potential tenants or buyers.

Whether or not the developer has good land titles for their projects is the third factor to take into account. If they do, you can be sure that they are knowledgeable and concerned about their clients’ well-being. This implies that if there are no problems from the government about land conflicts, your investment should increase over time.

How Can I Be Guaranteed the Plan Property Will Be Delivered as Planned?

Off-plan real estate can be produced on schedule if you choose a developer who has a transparent business plan and a track record of success. To ensure that the off-plan project is completed on schedule, you should collaborate with a developer who has a track record of success and who is open and honest about their company operations. The only person with the correct knowledge regarding successful and unsuccessful developers in the Lagos State real estate market is an experienced realtor.

Who is going to oversee the off-plan property?

The developer of an off-plan property will typically provide you with a list of recommended property managers after the development is finished.

A list of potential managers for my property during the off-plan time is provided by the developer. Additionally, we may suggest reputable partners like agencies, architects, surveyors, and management agents for you to select from.

What Dangers Come with Purchasing Off Plan?

Off-plan acquisitions carry several risks, therefore profitability is not certain. The primary one is that the house might not be constructed by the time you want to move in, or it might be constructed but at a price significantly greater than what you originally paid.

It also doesn’t include any unforeseen expenses that can come up after the purchase, such as higher building material supply chain costs. There’s a chance that the building will permanently harm the local economy or the construction site.

To prevent disappointing the clients, the developers, who are well aware of these dangers, ensure that they adhere to the deadline.

What Happens If the Off-Plan Building Design & Layout Are Modified?

Developers frequently present you with a single building and floor plan when the deal is made, then change it as work progresses. The area of the apartment may grow. It’s possible that a club and pool were depicted across from your apartment in the initial design. Alternatively, there might be a new residential building built in the area.

Always carefully study the buyer agreement to determine your rights to remedies if the plan is altered.

When Will the Building Project Be Done?

This is primarily based on the length of time it takes to construct your property, as most developers will tell you in their promotional brochures. Purchasing off-plan early also has the benefit of perhaps completing your property within a few months if it is one of the development’s faster structures.

This timetable may be extended to as much as 18–24 months, or even longer under certain circumstances if the building is more complex and has greater levels of specification. Inquire about completion dates, delay policies, and any compensation offered by developers if you’re considering purchasing an off-plan property from them.

Conclusion

In an off-plan project, timing is crucial because the sooner the building is finished, the sooner you may start enjoying the returns on your investment. Because of this, it’s imperative that you investigate the company beforehand and, if at all possible, visit some of their past projects to make sure they fulfil their commitments.