Why Off Plan?
The Dubai off-plan property market is booming. Although developers claim they have adjusted their build portfolios to meet affordability issues of low to mid-income end-users, it has been observed that investors are, in fact, lapping up a majority of these newly launched off-plan properties.
Off-plan property is a property before a structure has been constructed upon it. Pre-constructions are usually marketed to real estate developers and to early adopters as developments so that the purchaser can secure much better finance terms from their lenders.
“Buying a property which doesn’t yet exist is not for the faint-hearted, but many buyers and investors have reaped the rewards for their bravery.”
Although oversupply fears are prevalent in the lower end of the market, most stakeholders believe this will be corrected by 2020. It is unlikely there will be an oversupply since the actualisation rate of supply has always historically been substantially lower than projections.