Off Plan Property Investment in Dubai
The recent years have shown a rise in interest with off plan properties. Buyers and property investors were keen on the idea of having more control and lower prices. Experts believe that off plan property investment is ideal for investors with a strong understanding of the whole industry. It may not be as straightforward as everybody expects since the attractive benefits have equal potential risks.
The Previous Years
The beginning of 2019 was thought to be a strong start for Dubai since May 2018. The tallied 1,845 off-plan property sales in March 2019 clouded the 1,713 of February. The results found in the 2019 first quarter followed the market trend from the second half of 2018.
In the 3rd quarter of 2018, the value of off-plan residential sales reached $620 million according to EFG Hermes. Saleswise, the most sought-after areas were from Emirates Living, International City, and Mohammed Bin Rashid or MBR City.
The increase was a piece of good news for the developers who aimed to deliver projects to investors over the next year or two. Luxhabitat reported that 60% of the overall properties sold in the 3rd quarter of 2018 were off-plan projects from Madinat Jumeirah and Port de La Mer. Dubai
The Dubai Land Department revealed that there were 39,802 transactions for properties worth $44.1 billion for the first 3 quarters of 2018.
2018 had a busy year for the property sector, releasing over 30,000 units to the investors and end-users.
Dubai Real Estate Today
The Property Finder finds an uptick in Dubai real estate transactions in the first few months of 2020. According to the real estate insights platform, the transaction surge came ahead COVID-19’s heightened concerns. It was January 2020 that experts started to observe the overall transaction increase of 12% compared to the last year of the same month.
An even larger jump was recorded in February 2020 where transactions rose to 33% compared to the previous year of the same month. The observed spike reached 76% with the off plan property investment transactions. These are reflected with the recorded 2,251 for off-plan apartments and 504 transactions for villas.
The interest surge in off-plan transactions emphasizes the strong faith in the local, regional, international buyers, the build quality, and developers in Dubai according to Property Finder President Ari Kesisoglu.
The Big Purchases
The big sales of the month include the purchase of Shangri-La Dubai hotel on Sheikh Zayed Road that’s worth 700.2 million dirhams. There are 2 other big purchases from Dubai Hills Estate that’s home to the affluent ex-pat community in Dubai. The big purchase made during the month is the 7-bedroom villa worth 75 million dirhams. The other asset is the 7-bedroom property that’s worth 69 million dirhams. The buyers can enjoy business parks and the Dubai Hills Mall.
The most favored off-plan apartment projects sold in February 2020 were Burj Crown, Downtown selling 139 units and Creek Beach, Dubai Creek Harbor with 140 units.
The most popular off-plan villa projects in February 2020, there’s the Arabian Ranches 3 and the upcoming Dubai South zone. The latter is the closest district to the awaited Dubai Expo 2020.
According to Kesisoglu, the yearly upsurge shows that the economy remains to be globally significant with Dubai Expo 2020 adding a noticeable spike in the obtaining of properties.
Conclusion
Dubai garnered a lot of interest from local and international buyers after opening freehold properties to ex-pats. The off plan property investment in Dubai surge amid the Coronavirus outbreak. The growing economy of Dubai, its political stability, and the lucrative property investment returns are the ideal conditions that most investors are looking for. For more details about off-plan property investments, visit our website!
