5 Reasons Why You Should Invest in Off-plan Properties?

Many property investors think that off-plan real estate is a risky investment which is not false. And for this reason, its prices are lower than the ready-to-move-in apartments.

More people than ever are investing in off-plan properties in Ajman. You might be considering it too. Off-plan property is an empty piece of land you buy, intending to save much money to build its structure later.

As property experts, we will share why an off-plan property is a profitable investment.

Why Should You Invest in Off-plan Properties?

1- Lower prices

The most attractive advantage of off-plan properties is their lower prices for all investors, especially those on a tight budget. Constructed developments are priced at a higher value than under-construction ones. Investors should benefit from it.

In the Emirates, property development agencies announce uncountable new projects every month. Due to numerous choices, developers have to offer lower prices to attract more buyers, giving investors a significant advantage.

2- Capital growth

The United Arab Emirates is among the fastest-developing economies worldwide. If you buy an off-plan property here, you can rest assured to get a tremendous amount of returns.

If you are a newbie in real estate investment, you may find it attractive that off-plan properties often come with benefits like discounts or the permission to customize the property.

Furthermore, the property value may increase during the development and after completion, regardless of the fixed purchase value before construction. It will offer immediate equity to you instantly after completion.

Probably, you will pay the property price in installments. During this time, your property’s market price could rise and earn you enormous capital gains if you consider trading it off before or after completion.

Also, the chances of a spike in a property’s market value increase if it is situated in a popular neighborhood or locality. Or where new developments are under construction and could evolve into a well-rounded community. In those cases, you would inevitably see a hike in the market value of your property.

You can sell your off-plan properties in Ajman before completion and make a quick profit if the development has garnered buyers’ interest.

3- Possession and control

Investing in off-plan properties is an economical option for investors with little capital. However, you won't have control over the project’s implementation, completion, delivery, and possession.

Buying off-plan property isn't for you if you want control over how the developer executes the construction and how much time it will take.

On the other hand, if you are happy to let the property developer take the lead and complete the work within the agreed-upon deadline, go ahead and invest in an off-plan property.

The unpredictability of possession and absence of control over the property is also a big negative for some buyers since they need a place to reside immediately.

So, if you intend to settle in a new city or locality and can't wait for the project to get completed, you should not go for off-plan property.

4- Easy installment plan

An investor doesn't have to pay in full when investing in an off-plan property. Most developers offer flexible payment schemes which save investors from liquidating their assets to earn a piece of land.

A few prominent property developers offer luxurious developments at a 5% down payment and allow clearing the remaining amount within six years without charging any interest.

Comparatively lower prices than ready-made properties and flexible payment schemes allow first-time or seasoned investors to afford a property investment. These two factors make off-plan properties a more practical and economical option for everyone.

5- Powerful Rental Yields

The biggest reason why people are going to invest in Ajman properties is to gain rental income while sitting in their homes. As the country’s economy is steadily booming and experts expect it to follow the trend for a long, ex-pats are flocking to it.

It means that demand for residences in the Emirates will never go down. Even when property prices dip from time to time, return on investments shows no change in places like Ajman, Sharjah, and Dubai.

This increasing demand for housing can bring satisfying rental yields to investors. Tenants often prefer newly developed houses to old ones.

Some property developers design their off-plan projects as build-to-rent developments by offering life-enhancing amenities and facilities in the best locations.

So if you are a new expat, you can invest in those projects. It will earn you an attractive passive income which will help you make a firm foundation in UAE.

Bottom Line

So, this was a quick rundown on the profitability of off-plan builds for savvy investors. Investment is all about taking calculated risks. Despite having all these perks mentioned above, off-plan property investment can be risky too.

The point we wanted to make is investors should consider off-plan properties as a viable option when looking for an investment property.