luxuryspaces's Journal

During 2024, Dubai’s real estate market experienced more than 133,000 property deals, with pre-construction sales making up a significant 67% of the total transactions (Information from DXB Interact). As we consider the year 2025, a key question for those entering this dynamic property sector is: Is it better to invest in a property before it’s built, or one that’s already completed?

At Metropolitan Premium Properties, we understand that each client has a unique path. Regardless of whether you are a new buyer, a family needing more space, or an experienced investor, our knowledgeable advisors are available to make your choices easier. In this piece, we will examine the advantages and disadvantages of both pre-construction and completed properties, discuss current market conditions, and assist you in determining the best choice for your personal objectives. Furthermore, we will explain how our team can support you throughout the entire process.

• • Off-Plan Properties:�These developments present adaptable payment schedules without accruing interest, and the possibility of substantial value increase (for example, a 25% to 50% rise). However, potential drawbacks include postponed construction and fluctuations in the market.
  • Ready Properties:�These homes allow for immediate occupancy, offer stability, and the ability to generate rental revenue (for instance, returns of 5% to 8%). Nevertheless, they typically require a larger initial investment (such as AED 2,500 per square foot in prime locations).
  • Market Outlook:�Sales of properties under construction are currently the dominant force in Dubai’s real estate market, accounting for 67% of transactions in 2024. A predicted 5% expansion of the market in 2025 suggests favorable conditions for both categories of properties.
  • Best Fit:�Properties being built are more appropriate for investors with a medium to long-term outlook, while completed properties are better suited for purchasers who need immediate access or desire reduced risk. Your individual objectives and financial resources will determine the optimal choice.

Off-plan homes are acquired from blueprints and the developer’s design before construction commences. These properties typically feature advantageous pricing and accommodating payment plans, making them attractive to discerning investors and those anticipating future needs.

Advantage Of Off-plan properties

Off-plan properties are properties which are bought prior to being built or completed. Purchasers usually invest in these properties on the strength of architectural plans, drawings, and estimates given by builders. The following are some important facts regarding off-plan properties:

• • Pre-Construction Purchase: Purchasers agree to buy the property prior to construction or during its progress.
  • Lower Prices: Off-plan properties tend to be cheaper than completed properties, as developers provide discounts to entice early investors.
  • Customization Options: Purchasers can potentially customize some elements of the property, like finishes or floor plans, based on the stage of construction.
  • Potential for Capital Appreciation: In the event that property value appreciates between the time of purchasing and completion, investors can enjoy higher property value by the time of completion.
  • Payment Plans: Developers frequently provide flexible payment plans that enable buyers to make payments in installments as the construction process goes on.
  • Risks: There are risks associated with it, like construction delay, fluctuations in the market, or the risk of the developer not being able to complete the project.
  • Popular in Growing Markets: Off-plan properties are particularly popular in rapidly developing areas or cities with high demand for housing.

Cons of Off-Plan Properties

Waiting Game: It’s true that construction can sometimes run behind schedule. Our team keeps a close eye on progress, so you’re always kept informed.
Market Shifts: The economy can fluctuate, which can affect property values. We’ll provide you with the information you need to understand any potential risks.
What You See Isn’t Always What You Get: Sometimes, the finished property isn’t exactly like the initial plans. Metropolitan Premium Properties has a dedicated team that specializes in the final inspection, making sure everything is delivered as it should be...Read More