Dubai’s off-plan market is hitting its records. It was famous among Dubai realtors that the scorching heat of summer cools down the real estate market, but that’s no longer true. Price growth, high sales, and mortgage transaction volumes have been witnessed in the current scenario in the Dubai real estate market.
According to the recent research by Property Monitor Dynamic Price Index (DPI), off-plan property sales transaction volume is going up to 12.8% MoM and 43.5% YoY, with residential properties dominating at 93.4% in July 2024. Let’s discuss the reasons for Off-plan property investment in Dubai.
Perks of Off-plan Property Investment in Dubai
See the top reasons to Invest in Dubai Off-Plan Properties in 2025!
Flexible Payment Options Level Up the Game
If you are looking for feasible instalments and easy down payments, nothing can beat an off-plan property investment. Off-plan properties are under construction and available at very low prices compared to ready-to-move-in properties.
The payment plans often consist of a downpayment and monthly instalments for 4-5 years that are flexible enough to manage. Only some developers are providing 10/90 payment plans, which means you need to pay 10% as a down payment. The rest of the 90% will be paid in mutually agreed instalments.
High Rental Yields as a Great Source of Passive Income
What can be a greater source of passive income than renting out your property? The rent doubles when it’s in Dubai. The simplest way to earn a steady monthly income is to expense your groceries or bills by investing in an off-plan property and renting it out.
You don’t need to wait to complete your instalments to rent the property. You will get the keys after completing a certain amount of the total price, and you can pay the rest from rental yields. Most areas in Dubai are emerging, and people worldwide are rapidly shifting to the UAE. But Dubailand is one of the top-class communities right now, and many developers like Damac, Emaar, and Empire are launching contemporary off-plan properties. Off-plan property Dubai Emaar is one of the most demanding investment opportunities for investors. They literally wait for their new launches and book them in advance.
Contemporary Amenities to Spruce Up Your Life
Who doesn’t want luxury and contemporary amenities in 2025? Off-plan properties offer all the luxurious facilities to boost your lifestyle. Access to private beaches and pools makes the scorching heat bearable for residents. The prime locations and serene views boost the mood immediately and keep the mind fresh.
Every off-plan property features different but modern amenities. The public parks, sports grounds, fitness gyms, yoga decks, and outdoor cinemas make life hassle-free and enjoyable. A good community is crucial in balancing your life and making it stress-free.
Customizing Options to Prioritize Your Preferences
Off-plan properties have room to customize your space according to your preferences. Whether it’s just a modification or interior finishing, you can easily get it done as your choice. However, it also depends on the developer and their limitations. Customization options for off-plan properties in Dubai are generally more extensive during the early stages of construction and diminish as the project nears completion.
Booking your property as soon as possible is recommended because off-plan properties sell out rapidly. Investors around the globe, especially, wait for the launch of renowned developers and book them in advance.
Prices Lower Than Secondary Properties
One of the best reasons to buy off-plan properties is that they are low in price compared to secondary properties. Developers also offer early-bird discounts, pre-booking discounts, and more to attract investors. But the price evolves as time passes and your property comes to be completed.
Get High Returns on Your Investment
The Dubai real estate market offers 8-10% ROI annually. So, you can calculate that selling the property in 3 years will be a good return on investment. Usually, you can sell off-plan properties after and even during construction. However, it is crucial to select the demanding locations and projects.
You should research the best off-plan property investment according to your requirements, or you can hire a trusted real estate agent to find a property for you. At 100 Keys, we are your trusted partners in finding the suitable off-plan property for you and assist you throughout the process.
Apart from these reasons, you must be well-informed about the legal framework when buying property in Dubai.
Key Legal Considerations When Buying Off-Plan Property in Dubai
Verify Eligibility for Ownership
Foreign property buyers must ensure the off-plan property is in freehold areas. It is the designated area for non-UAE residents to buy and own properties legally. You will find a long list of freehold areas in the UAE, each with a perfect location and diverse off-plan investment options. You can find the complete list of freehold areas in UAE from the Dubai Land Department (DLD)
Registration in the Interim Real Estate Register
All off-plan property sales must be registered with the Interim Real Estate Register of the Dubai Land Department (DLD). It is the responsibility of the developer you are buying from. He must complete the registration process within 60 days of the transaction. If the registration is not done or is delayed, it may show invalid sales, and you may cause legal disputes.
Legal Due Diligence on the Developer
Buyers must perform in-depth research to learn the developers’ credentials within the Real Estate Regulatory Agency (RERA). To avoid legal disputes or penalties, you should ensure the developer has all necessary land ownership and approvals. As per Dubai’s mandate law, the developer should have a dedicated escrow account linked to the specific project. The developer is allowed to develop in those areas.
Property Registration Application
When they purchase an off-plan property, buyers must complete their property registration within DLD and submit property documents, including personal details, property details, and applicable financial statements. This quick process ensures everything is in DLD’s records to avoid legal issues.
Fees and Associated Costs
Dubai has strict laws requiring developers not to impose additional or hidden charges for property selling or reselling. However, if additional charges exist, the developers must get approved by DLD. In any case, buyers must take responsibility for showing everything with authority and transparency.
Review of the Sale Contract
You can hire a real estate agent to create a sale contract. It includes all the legal formalities between the buyer and the developer. The real estate agency will also get it approved by the competent authority for validation. Your sales contract should be formal and coherent. Informal contracts are considered invalid and may not be approved, causing legal issues.
Completion and Final Registration
Once the project is completed, developers must legally register the finished unit within the designated property register. Establishing the buyer’s official ownership rights is important. However, this ownership recognition is contingent upon the fulfillment of all contractual obligations outlined in the agreement between the buyer and the developer.
The final registration in the property register signifies the official transfer of ownership to the buyer, provided all agreed-upon terms and conditions have been met.
Here You Go!
Dubai’s off-plan investment can prove rewarding by providing flexible payment plans, excellent rental returns, modern facilities, and potentially high capital appreciation. However, all this requires extensive due diligence.
Buyers should research the developer’s reputation and ensure the project is registered with DLD. They should also carefully review the sale contract before any purchase in this market. Understanding the legal framework and making informed decisions help investors navigate the Dubai off-plan market successfully.
