Is Investing in off Plan or Ready Properties Better?

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When it comes to property investment there has been a long debate regarding the investment in off plan properties (the units that are under construction, or not readily available) and investment in ready properties. Each investment category has its own pros and cons which needs to be understood so that the right option can be opted for when it comes to investing money in real estate. Real Estate categorizes investors into too different categories, one of which are looking to yield returns immediately from the investment, and the later who would prefer to wait for yields but would look for better returns. Based upon individual investor’s requirement each kind of investment can be suited. The article further discusses about both kinds of investments in Real Estate sector.

Ready Properties Investments

Ready Properties investments are best suited for investors who are looking to earn returns from the investments immediately, in Dubai particularly when you investment in ready property for buy-to-let purpose, generally the net return returns average to around 7% to 8% in apartments and villas. Because, Dubai freehold properties can be owned by any nationality residing any part of the world with no property or profit tax, the ready properties are the most sought after investment type in Dubai. In Dubai, RERA looks after all the property registration and has a centralized database where all the property owner information are stored ensures that the property is safe and secure no matter whatever the condition would be. RERA hands out a Title Deed which is the property registration paper under the name of the owner which ensures that the property is under the owner name, and as per the law, the rental cheques are also issued under the name of the owner only which secures the returns on ready property. When it comes to risks, ready property investments have lesser risks as compared to any other investment, however, it is always advisable to deal with RERA authorized agencies and agents to ensure smooth transactions. Although these kinds of investments are secure and smooth, however one drawback is regarding the capital appreciation which does not grow at a significant rate especially if the community where the property resides is already developed.
Off Plan Investments


 These kinds of investments are more suited towards the investors who are looking for better capital appreciation, higher returns on their investments and would prefer to wait until they wait. For any property in Real Estate the value of the property varies according to the status of construction of property. Usually when a new project is launched in Dubai, the construction of that project either does not start or retains at the excavation level at which the prices of the property are about 70% to 80% of the predicted price at the hand over. Although the off plan investments around the world are more riskier investments than ready properties, however RERA has put together important rules which ensure that all major rules are mitigated and the investments are made secure as much as they could be made. When it comes to registration, even off plan investments are registered with RERA similar to the ready properties, however in spite of Title Deed an Oqood paper is issued to the owner which ensures that the property belongs to that particular owner. As per Dubai’s real estate industry standards, generally 20% to 40% profit is yield by selling out the property when it is handed over. However, some investors do plan to yield returns through the rents which are more than 10% on average from the investment price and along the same lines, the capital appreciation also occurs which double benefits the investors.

When it comes to Dubai Real Estate investments, the investments choices are solely based upon the requirement of the investor and the budget he / she would have to allocate for the investments. SPF Realty is a leading real estate in Dubai with thousands of off plan and ready property investment options. Our consultants make sure that we offer the right option based upon your requirement so that you the get the best out of your investments.
Author: Mohsin Ayub
Digital Marketing Specialist
SPF Realty
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