Off-plan property is a highly successful option when buying real estate in Dubai. Below are some of the reasons why off-plan property is so beneficial to international investors.
Anywhere in the world, off-plan purchase offers investors the ability to buy at the lowest possible price and achieve maximum returns on investment. Many investors keep their property for a number of years and receive excellent rental income. Meanwhile they enjoy a beautiful holiday home and watch the value of their property increase steadily. Others sell on their contract prior to project completion, cashing in on capital growth as well as avoiding the costs of actually owning the property.
What are the main drivers for investing off-plan:
The best price – the first properties released usually go for the cheapest, because the developers need fast early sales. Once they meet their financial requirements, they often up the purchase price on the remaining properties to make up for lost profits.
Today’s price for tomorrow’s equity – An off the plan purchase means you can lock in the ownership of a property, without having to settle for an extended period of time. It may be one or two years before settlement, so capital growth can often make your initial deposit more valuable in the meantime. The risk here is that the value may decrease in this time, so it is important to be sure about the area, not just the property. If you intend to hold the property long term, value fluctuations in the immediate future may not overly concern you.
Time on your side – The long settlement period means you have some breathing room to take care of the investment, or to organise to move house if you intend to be an owner-occupier. You can also use the time to save money and reduce the amount of finance you will need to borrow.
Example: Murano Residence, Al Furjan, Dubai, UAE
Murano Residences is the ideal investment for the yield seeking investor or the cost conscious end-user. A superior payment plan increases the rental yield or makes the apartment financially easier accessible. The clever designed apartment sizes give more living space to the end user. And the pricing structure make the apartment affordable to investor and end-user alike.
Key to every investment is the location. Murano Residences has the advantages to be close to the future growth areas of Dubai and is in short distance to the coastline andits buitiful beaches. The Al Furjan community is family friendly and has all the amenities an individual, a couple or a small famity is asking for. This strategic location and the superior connectivity gives a lot of potential for a
gradual, long term capital appreciation.
Another key driver is the beneficial payment plan. The home owner pays 40% during construction and 24% at handover of the apartment. This is the time when ADIB (Abu Dhabi Islamic Bank) will provide finance for the project. Therefore only 64% of the purchase price needs to be paid before moving into the apartment or renting it out. The balance of the purchase price is
paid over 3 years post handover at a rate of 1% per month. This is a real financial benefit for investor and end-user alike. It makes the purchase of a property more accessible and gives the investor an above average return..
We predict that the units will produce a
rental return of between 12% and 15% in the first year after handover. Capital appreciation goes on top of this.
Please find more information about Murano Residences in the tap at the top of this webpage.