Today, the real estate market in Dubai is booming at an incredible pace. The city of lights is no longer only a tourism destination but is also becoming the next global city to migrate to. This leads to an array of opportunities and also creates incredible opportunities for investment purposes. While there is no doubt that such factors lead to a high potential ROI on investment, it first becomes vital to understand the crux of investing in real estate properties. Especially when the investors have an option between choosing between an off-plan development and ready properties.

Today, with the changing dynamics in the real estate market of Dubai, there has been a growing demand for both ready properties and off-plan properties. Both of these depend on the requirements of homeowners, location benefits, and much more. Moreover, with the growing developments of housing projects in the city, it can be difficult to choose the right home, let alone make a choice between off-plan and ready properties. Both of them have their potential benefits and limitations. So it’s vital to have some in-depth understanding of the same, which can help you make the right decision on the investment.

Understanding Off-Plan Properties

This term refers to those properties that are still at a developmental stage. One of the major benefits of opting for an off-plan property is that the buyers can get the housing units at appealing prices before their completion. Besides just the lucrative pricing, there are other advantages as well.

Pros of Off-Plan Development

• In comparison to ready properties, off-plan properties are priced at a lower rate, which makes them an appealing option for investors who especially look for long-term investment returns. One of the ways to reach out to early buyers and investors is by offering them a lucrative payment plan through which they can easily secure a property at a lower cost.
• Off-plan properties serve as a great avenue for homebuyers to be able to customize their homes. While opting for an off-plan property, they have the leverage of selecting their finishes and fixtures and choosing the layout and floor plan themselves. Through such a range of customization, they can add their touch to the property and create a space that suits their individual preferences.
• Investing in off-plan projects comes with the potential for huge capital appreciation. This means the value of an off-plan property is likely to increase by the time it reaches its completion. The same property may see even bigger appreciation in its latter years. So the scope becomes exponentially huge.

Cons of Off-Plan Development

• One of the major hurdles with off-plan properties in Dubai can be delays during construction. These can happen due to various reasons like unforeseen circumstances, changes in market trends or some major mishap from the developers themselves.
• Sometimes, with off-plan properties, there are chances of the final product not living up to the expectations of initial development plans. This can involve a change in design, layout, or project scope. All this may occur during the construction phase itself.

Ready Properties

Contrary to off-plan properties, Ready properties are fully constructed properties that are immediately available to move into. These properties have the potential to offer tangible benefits that are ideal for investors and buyers who wish to have immediate rental income or need to move in without any delay.

Pros of Ready Properties

• One of the major benefits of opting for ready properties is that buyers are provided with the option of immediately moving in or renting out their home for additional income shortly after purchasing it.
• With ready properties, buyers can inspect the property before making any decision. While they may not have the flexibility of customizing it, they can access the quality, finish, and living conditions of the place before deciding to make the purchase.
• One of the biggest advantages of opting for a ready property is its being nestled in established communities with an array of amenities and vibrant social circles. Residents can have immediate access to major sectors like healthcare, education, and finance.

Cons of Ready Properties

• While the option of being able to move in immediately is appealing, it often comes at a cost. Hence, the cost of purchasing a ready property can be exponentially high, depending on factors like location and quality.
• Unlike off-plan properties, ready properties provide limited opportunities for customization. Buyers would have a very limited scope of being able to change anything within the premise for modification or personal touches.

Conclusion

Both off-plan properties and ready properties in Dubai can be lucrative options for homeowners based on their preferences and priorities. However, the first step is to always evaluate if they wish to move in immediately or can wait and customize their homes. They both provide exponential return upon investment, but it’s highly advised to perform thorough research on the shortlisted properties before making any decision.