After facing a temporary setback due to the COVID-19 pandemic, the Dubai property market is back on track, and real estate reports clearly testify to this fact. A lot of new projects are launched while the ongoing ones are nearing completion. This makes for a perfect time to invest in the Dubai property market and benefit from the lucrative opportunities it has in store for everyone.
While there are stunning waterfront homes, cosy apartments and lavish penthouses, investors are now favouring off-plan developments. Affordability is the major reason behind this shift of trend. Also, since there’s less capital involved, the risk level is reduced as well. Having said that, the risk factor is still prevalent in this type of investment. Although reduced, it can put your life earnings at stake.
To ensure this doesn’t happen, follow this in-depth guide to make your off-plan investment in Dubai secure and risk-free:
Check the Legitimacy of the Project
First of all, you should ensure the project is legitimate and not a fraud. Check for its credentials and other details. Also, confirm its legitimacy with RERA Dubai. You can find information about the project if it’s legitimate on the DLD website.
Also, make sure the project has an escrow account. Every developer is bound by law to open a new escrow account for every project they launch. So, you need to confirm it without handing over your hard-earned money to the developer. As a matter of fact, you should never ‘hand over’ your money to anyone. The law requires the buyer to deposit the money in the escrow account associated with the project.
This will keep your investment in safe hands, as even if the project gets shelved, you will get your amount back from this particular account.
Choose the Project Developed by a Reputable Developer
It doesn’t matter if it is your first investor or you have purchased an off-plan property in the past, you should always select projects helmed by a reputable developer.
Renowned developers have an image to maintain. Therefore, there are minimum chances of delays during the construction. In most cases, they meet the deadline, and the handover takes place at the proposed time. Furthermore, properties they develop have high-end finishing, and they come with the latest facilities and amenities.
Also, projects developed by renowned developers tend to produce a high ROI due to the ‘trust’ and ‘credibility’ factors.
Select the Right Location
Whether you’re buying a ready-to-move-in apartment or an under-construction villa, always make sure to choose the location wisely. Take as much time as it takes, but no compromise should be made in this regard. So, do a thorough analysis of the best neighbourhoods in Dubai, and make an informed decision.
Don’t forget to take the distance of the area from your workplace into consideration. Also, consider facilities, developments and landmarks available in close proximity before making the final call.
Bear in mind that the price of the property also depends a lot on the area it is located in. So, you need to take this factor into account as well.
Choose the Right Property Type
Trends in the real estate market do not take a long time to change. Earlier, apartments and studios were the preferred choices of buyers, but now, the ongoing trend favours bigger properties, such as villas. Therefore, considering market conditions holds utmost importance when making an off-plan investment.
Invest in a Waterfront Development
Waterfront projects in Dubai are always considered safe from the investment point of view because of their constant high demand and stable value. However, they are very expensive as well. But, if you buy them in the off-plan market, you can save a lot on the upfront cost and monthly investments as well.
These projects yield high ROI because of their proximity to the waterbody, serene ambience and lavish looks they offer. However, it’s important to select the right one with the maximum potential. For example, you can consider buying an apartment or penthouse in Stella Maris Tower. Occupying a prime location in Dubai Marina, it is going to be the last waterfront project in the community.
In all, no investment in the Dubai property market can be absolutely free from the element of risk. However, by taking into account the aforementioned practices, you will be able to minimise the risk factor up to a great extent.