Purchasing real estate under construction directly from the developer (off-plan) is a common practice in Dubai. In addition to favorable purchase terms, off-plan projects provide an opportunity to generate rental income and market value appreciation.
In 2023 and 2024, sales of off-plan properties in Dubai were the major drivers of market growth, CBRE said. In the AED 5 million and above and AED 10 million segments, off-plan sales accounted for 67.2% and 70.8% of total transactions respectively. Meanwhile, the majority of transactions were for properties in the initial stages of the project.
In the article, the In.ae team talked about the benefits of investing in off-plan real estate and the challenges one may face when buying.
The Benefits of Off-Plan Property in Dubai
Dubai real estate offers numerous advantages — a favorable tax system, modern infrastructure, and visa programs open to all nationalities. But off-plan projects come with one major benefit: the opportunity to buy at a lower price and grow your capital.
Let’s take a closer look at the key advantages.
Pros of Off-Plan Real Estate in Dubai
Real estate in Dubai in general gives many advantages. This and a favorable tax system, and developed infrastructure, and visa programs open to citizens of all countries. And off-plan projects have their main advantage – the opportunity to save significantly on the purchase and increase your capital.
To make it easier to understand the subtleties, let’s dwell in more detail on the most important points.
Low price per square meter at the start of sales
At the start of off-plan sales the price per square meter is usually much lower than when the house is completed. This is used by competent investors – it is enough to buy real estate at the project or construction stage, and then resell the finished housing at a higher price.
Interest-free installments
Another important plus – installments from the developer. This is advantageous because you do not overpay interest to the bank. Developers in the UAE are willing to offer very favorable payment options due to high competition.
For example, at the start of construction and booking the buyer pays 20-30%, during the construction – another 50%, and when the house is handed over – the remaining amount.
Installment payments are beneficial to investors who buy housing at an early stage of construction, then sell the lot before the last installment is paid.
An example of a fresh project with an interest-free installment plan
An apartment overlooking Palm Jumeirah in the Iconic Tower project, designed by Italian bureau Pininfarina:
- 2025 at contract signing – $173,800
- Five payments through 2027 – $34,760.
- Last payment on handover of keys – $347,600
The opportunity to choose the best of the possible
When buying an off-plan property at the start of the sales, you have unlimited choices. Why not take the best of all possible worlds? Whether it’s a villa with a sea view or an apartment with a stunning view of the city, it’s all down to your preference.
Off-plan properties are now available from many developers with an excellent business reputation, such as Emaar or Mered.
Whether you intend to live in the apartment yourself or are buying it for resale or rent, the views and the number of meters always matter.
A new home that inspires
By the way, if you are buying a property for yourself, off-plan real estate in Dubai will be one of the best decisions of your life. After the construction is completed, you get the keys and move into your new home, where no one has lived before you. This is a great advantage for those who appreciate aesthetics and order.
If you want to be inspired, take a look at Iconic Tower with the best view of Palm Jumeirah. The building and interiors of this project were designed by Pininfarina, the bureau that designed for Ferrari. The developer of the project, Mered, aims to make the residential complex a benchmark of quality in Dubai.
Iconic Tower will have 66 floors, an infinity pool, a spa and a smart parking lot that will be powered by artificial intelligence.
Cons of Off-Plan Real Estate in Dubai
Off-plan real estate is not suitable for everyone. Here are the disadvantages.
Construction timeframe
Many off-plan projects will only take three to four years to complete. This is not suitable for everyone, so estimate the timeline for yourself in advance.
For example, one of the most anticipated projects – Emaar Golf Dale – will be delivered in Q4 2028. In the residential complex in the Emaar South neighborhood, you can buy apartments with one to three bedrooms and townhouses with three bedrooms. But they will not be ready soon – not everyone is ready to wait, so choose ready real estate in Dubai for the mortgage.
Plus it is important to take into account that some developers can postpone the delivery date for a year. To avoid this, carefully study the contract before buying, and better yet, contact those who know everything about Dubai real estate. In.ae will help you make the right choice.
Deferred profit
When buying an off-plan property for investment, you need to understand that the property you buy will start generating profits only after the construction is completed.
Off-Plan, Secondary or Ready-Made Housing – What Kind of Real Estate to Buy in Dubai
The choice of real estate depends on your goals.
If you want to earn income as soon as possible, renting out housing, it is better to pay attention to projects in the final stage of construction from the investor or ready-made apartments. Right now, there are plenty of such offers available on the Dubai market.
Choosing between primary and secondary, it is important to remember that both options also have their advantages and disadvantages. Here are the four main differences.
Availability
When working with the primary market, you need to be prompt. Decent options are bought up even before the official start of sales. With the secondary market there is an opportunity to choose an apartment at a relaxed pace. Although even here good options are sold out quickly.
Payments
When buying from the developer, you do not spend the entire amount at once. It is enough to make the initial payment, after which you can issue an installment plan.
For the secondary, most often you need to prepare the entire amount at once. But there are options with installments even for ready-made objects, as well as mortgages. The UAE has a low interest rate, which makes it attractive to buy a home with a mortgage.
Process
When you buy primary, you enter into a standard contract with the developer, the deal goes quickly. And when you buy secondary, the process can last longer. It is necessary to discuss all the conditions with the seller, choose a convenient date for both parties of the transaction.
Result
If you buy an off-plan residence, you will have to wait until the construction is finished. But if you choose secondary housing, you can move into the apartment immediately after the transaction or rent it out.
– We will take care of any questions on the purchase – choosing an object, transferring money, concluding the contract. And in our Telegram channel with launches we have collected projects that few people know about yet – it’s convenient if you plan to pick up the best objects first,” said Firuz Khalid, one of the co-founders of In.ae.
If you are looking for properties for resale, off-plan real estate in Dubai is for you.
The scheme is simple – you buy an apartment at the start of sales, when there is no excavation. Then you wait until a certain stage of construction, when prices for the apartment become higher, and then resell it.
Pros of such a scheme:
- Quick investments. You can get out of the investment within a year and make a profit in as little as 6-8 months from the date of the transaction.
- Affordable instruments. You can use an installment plan and pay only a part of the cost of the apartment, not the full amount. Usually at the start of sales reservation 10%, and during the year up to 50-70% (depending on the object, the developer and the terms of installments).
- Big profit.
What Does an Investor Need to Know in Order to Successfully Invest in Off-Plan?
- The cost per square meter. Ideally, it should be lower than the current market price, but in no case exceed it.
- The date of delivery of the project. You need to know it to estimate when you will start receiving income.
- Who the developer is and how popular his projects are. For example, Emaar and Meraas use inexpensive materials in their finishes, but in return you get a cool area and community. If you want a higher level of quality finishes at affordable prices, check out projects from Ellington, Imtiaz, Iman and Prescott.
- Value forecast. A good factor is a location that is just beginning to be developed. For example, projects in Dubai Islands, where additional coastline is located. Since properties near the sea are always in demand, a good price growth for these properties in the future is obvious.
- What the target audience of the property will be. This directly affects who you will resell the property to. Be sure to also evaluate the property’s competitors to correctly predict demand.
- Find a broker you trust. This is the most important item that determines the speed, success and cleanliness of the transaction. The In.ae team has experienced real estate experts who will help you make the right choice and will accompany you at all stages – from finding a property to renting or reselling it.
