Buying Off - Plan real estate investment in Dubai

Real estate investors like to buy real estate in the hope of producing substantial capital gains. In addition, there may also be many opportunities for capital growth in an emerging real estate market such as Dubai, with a development cycle of usually 12 - 24 months.

The largest developer of Emaar Properties in Dubai now requires owners to have 40 percent of the off-plan Properties amount paid for before they can sell to a new owner.

Investors who buy off-plan property can only pay a minimum deposit, such as 10 or 15 percent of the selling price, to secure such property, which allows investors to sell the property as market prices rise.

In most cases , whether dealing with a developer or a real estate agent , a fee of between two and five percent of the selling price is expected to be paid out in addition to the property price

Off-plan property values start to rise when the real estate project is partly completed.

The data published by the Dubai Land Department ( DLD ) showed that sales of unplanned properties in Dubai exceeded 25, 000 units last year - a nine - year high.

With uninformed investors who do not understand their limits on cash flow and believe that they can resell the property after a few payments, with some private developers paying very high commission fees, it is quite possible that agents may misrepresent market trends to enter into an agreement.

While investing in off - plan real estate may not necessarily be the deal it once was, for end - users and some people buying second homes, it is still a viable path because it offers the potential for their dream home, delivered new and to their exact specifications and in the right place.

Companies such as Emaar and Meraas chooses areas for new investments that may be less risky than others (including future financing in the region, already available infrastructure, etc)