When considering property investment in Dubai, the choice between buying an off-plan or a ready property often comes down to price and potential returns. A common perception is that off-plan properties are significantly cheaper than ready-to-move-in units. However, this is not always the case, and buyers should exercise caution and due diligence when making their decisions.
The Myth: Off-Plan is Always Cheaper
It’s often suggested that off-plan properties in Dubai are 20-30% cheaper than ready properties. This assumption stems from the idea that developers offer discounted prices to attract early investors before construction is completed. However, while off-plan investments can offer potential cost savings, this isn’t a universal truth across all developments.
Many real estate agents may claim that off-plan properties are always the cheaper option, but in reality, this is not necessarily accurate. In some instances, developers are pricing off-plan units at a premium—sometimes even higher than comparable ready properties in the same community. This can mislead buyers into thinking they are securing a bargain, when in fact, they might be paying more for an uncompleted asset.
The Importance of Price Comparison
Before committing to an off-plan purchase, buyers should compare the price of the off-plan property with similar ready units in the market. It’s not enough to simply look at the overall price of the property. Instead, buyers should evaluate the price per square foot, which provides a clearer picture of the property’s value in comparison to ready properties.
For instance, an off-plan apartment might seem affordable in terms of total cost, but when the price per square foot is calculated, it could turn out to be higher than ready properties in the same area. This discrepancy could indicate that the off-plan property is not as great of a deal as initially thought.
Misguidance in the Market
Many inexperienced realtors are pushing off-plan properties simply because they offer higher commissions. While this can be a financially motivated strategy for agents, it’s not necessarily in the best interest of the buyer. Agents may downplay the advantages of ready properties or fail to provide up-to-date data on property prices, leading buyers to make uninformed decisions.
Making an Informed Decision
As a potential buyer, it’s crucial to perform your own research. Don’t rely solely on the advice of realtors, particularly if they are pushing off-plan deals without thorough market comparisons. Always investigate the current market prices of both off-plan and ready properties. By evaluating price per square foot and considering the long-term financial implications, you’ll be in a better position to make a well-informed investment decision.
While off-plan properties in Dubai can offer potential savings, they are not always the cheaper option. Buyers must be vigilant, compare properties thoroughly, and seek reliable data before making a final decision. Investing in real estate is a significant financial commitment, and the key to success lies in making well-informed choices rather than being swayed by generalized claims or agent commissions.