Off-plan projects in Dubai: how to choose the most promising investments

Off-plan projects in Dubai: how to choose the most promising investments

Property in Dubai, even off-plan units, has investment potential. It is essential to understand that it is first and foremost about projects by reputable real estate developers in popular areas of the metropolis. These properties have every chance to become new stars in the sky of elite housing in the emirate.

If you are an investor and are looking for promising projects for business development or want to invest at minimal cost, off-plan housing in Dubai is one of those options that you should pay attention to. We will explain why it is profitable to purchase a house in the early stages of construction and share information about cost-effective units recently launched in Dubai.

Content:

The current situation in the off-plan property market in the UAE

Since 2021, the Government of the United Arab Emirates has been trying to deliver major projects. Currently, all properties under construction are valued at more than AED 3.2 trillion ($860 billion, ¥5.4 trillion) in the UAE. This demonstrates a moderate growth in general construction activity and productivity and economic recovery in the country. All of this attracts interested investors from around the world.  Laws that give foreigners the right to obtain a resident visa in the UAE act as an additional motivation. This also lays a solid foundation for the growth of the economy and the housing market in the country.

Dubai plays a vital role in development and globalization of the country's real estate market. The emirate's improved growth prospects, determination, and performance demonstrate its growing potential after the global economic crisis in 2020.

Проекты в Дубае на стадии котлована: выбираем самые перспективные для инвестиций

Advantages and disadvantages of buying off-plan housing

Off-plan is the initial stage of construction when the foundation is laid. At this point, the real estate for purchase in the future residential complex is already available. How profitable is this investment?

Advantages

  • Savings are the main advantage of buying a new building in Dubai before putting the unit into operation. The off-plan stage is the earliest (except for the pre-launch, the design stage) and the most affordable for purchase. Savings can be up to 30% compared to housing purchased at later stages of
  • The range of offers. At this stage, the widest range of apartments is already available, so buyers have the opportunity to study the plans and learn the footage and layouts carefully.
  • High return on investment. Dubai has one of the highest return on investment (ROI) rates - up to 15%. After putting the building into operation, you can not only sell your property for a higher price but also get rental income if so desired.

Disadvantages

  • Long wait. The construction work lasts 2.5 years, and repairs and connections to engineering systems can take another 1–1.5 years. This will not be a big problem if you are not in a hurry to move into a new apartment.
  • Construction delay. In the realities of Dubai, this is a rare occurrence, but it is possible based on the pandemic

Three main factors to consider when choosing a property

A real estate developer’s reputation

The first thing you should pay attention to when choosing apartments in off-plan buildings is the reputation of the real estate developer. It is essential to find out the company's foundation date, learn about their finished projects on the website, and read customer reviews.

These are the most popular developers in Dubai. Their professionalism has been confirmed by years of productive work:

  • Emaar Properties;
  • DAMAC Properties;
  • Meraas Holding;
  • Select Group;
  • Dubai Properties Group;
  • LIV Developers.

Location

The location of the new residential complex plays a vital role in the further success of the project. Housing units in Dubai's central or coastal areas and tourist areas are in demand.

The following areas and communities are the most popular among foreigners and locals:

  • Palm Jumeirah;
  • Dubai Marina;
  • Business Bay;
  • Downtown Dubai;
  • Dubai Hills.

Infrastructure and transport

Developed infrastructure, convenient transport interchanges, and public transport stops are essential features to which buyers and tenants pay attention. In addition, if you plan to live in an apartment, these amenities will simplify your life significantly.

The most promising off-plan investment projects in Dubai

Let us provide you with information about the most profitable, investment-friendly, and impressive off-plan projects and projects at the initial stages of construction.

Ciel Tower Dubai Marina

Ciel Tower is a new project from the real estate developer First Group. It is located in Dubai Marina. When completed, this 82-story tower will be the tallest hotel in the world, reaching 365 meters in height. This large building will perfectly complement the district's appearance and expand the elite real estate market range.

The starting investment price is AED 2.09 million ($570,000 or ¥3.61 million).

Peninsula

Peninsula is an elite community built by the property developer Select Group in Business Bay, the business center of Dubai. The complex has nine towers. The Peninsula will feature world-class amenities, including tennis courts, swimming pools, a fitness center, gaming areas, and barbecue areas. There will also be several parks, entertainment centers, and places for recreation on the community's territory.

The starting investment price is AED 624,000 ($170,000 or ¥1.07 million).

Regalia Apartments

The residential complex Regalia is a project of one of the largest property developers in Dubai, Deyaar Development. It is located in Business Bay. The residential complex consists of 75 floors and includes 900 premium-class apartments. This skyscraper represents luxury, style, and comfort.

Residents of the complex will have access to:

  • Health center;
  • Fitness center;
  • Pools;
  • An outdoor cinema;
  • Yoga room;
  • Landscape gardens.

The starting investment price is AED 2.46 million ($670,000, ¥4.24 million).

Проекты в Дубае на стадии котлована: выбираем самые перспективные для инвестиций

We will help you buy property at the stage of excavation

Emirates.Estate specialists will select a buy-to-live and buy-to-invest property according to your preferences, consult on renting, purchasing, and selling, and assist you in buying in an off-plan residential complex. Current real estate prices can be found in the catalog on the website. 

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