It is necessary to have knowledge of off-plan properties before investing in them

The off-plan property is defined as a type of property that has not yet been completed. Buying an off-plan property sounds like something where one must invest much early. This term mostly refers to purchasing property before the construction begins. Sometimes, properties that are partly built are also known as off-plan properties. In fact, even if they are completed but the selling process has not begun – then also it is known as off-plan properties.

This can appear to be a perplexing prospect for many, but there are too many advantages of buying off-plan apartments.

What is an Off-Plan Property Investment?    

When an investor purchases a property – which is still under construction -- or it is under the planning stage – then as mentioned above, is called an off-plan property. Knowing all the basics about these properties can help one to make the right decisions, if they want to invest in such properties. Before that, there are some important factors to consider:

• If one is thinking about making off-plan investments then the first step is to be sure about their goals. Before making any investments in real estate, one must make sure what they want to achieve. Before investing, it is necessary to check the potential risks, and returns.

• Once that is established, it is necessary to critically identify the property type you intend to finance. Whether it is a residential or a commercial property, one must carefully select the property type in which one will invest. This is especially important when investing in off-plan because there will be a long period between the issuance of the debt, and the completion of the development.

• It is also very crucial to think about the location of the off-plan investment. One must think of long-term here because if one is going to stay in the property or use it as an office, it is necessary to think about the location. The city’s development plans should also be taken into consideration then. Any property investor looking for something which is a little different then it is better to look for off-plan properties in the market.

Who Buys Off-Plan Properties?    

Off-plan developments are frequently an attractive option for investors due to the lower purchase price in comparison to the value of the completed state. During the construction period, the value of investment can increase significantly – especially in the developing areas where the investors are more interested to invest.

There are a few major reasons why people in real estate want to invest more in off-plan properties. The first one is frequently pricing below the market value. Due to the lower-than-usual property price – the investors try to get more money in return. The off-plan properties are also in high demand from the renters because they can come with contemporary designs, and they also feature new facilities.

Who Develops Off-Plan Properties?     

The property developers create off-plan properties. The developers can identify the demand of the locality, and plan a property construction there. Once the plan is finished, they might open it for sale options. Even if the construction is yet to begin, there are high demand of some locations, and some constructions, and so investors are also ready to invest in them at the very beginning so that they can book a unit of the property before anyone else can.

One of the major risks though of investing in an off-plan property is that – one is putting their money into something that has not yet been finished. If the construction gets halted mid-way – then it can create anxiety, and other issues. Also, one might not want to take the risk of investing their money into something that is not yet a finished product.

The best property developers who buy off the plan are mostly experienced, and well-known in their fields. Investors should also avoid an off-plan property from any developers who does not have a strong record in the real-estate market. If one wants o=to invest in any such projects – it is a must to do thorough research before that.

Some major tips to do the research:

• Check the portfolio of the completed projects that are done with the builders before.

• How many years of experience they have in the field of real estate, and how many off-plan properties they have sold efficiently.

• Check the customer service, and see how many positive feedbacks they have.

• If they have a website, and check the press coverage of their developments in the housing markets.

To buy off-plan properties in Dubai – one should check the scenario of those properties in the market. According to reports, there have been too many properties that have been handed over in the last 10 years, and all of them maintained a strict timeline. Though there are risks of delays, but those are too rare. Dubai real-estate market also has some turbulent shifts which result to buy something what is thought as a good price – but later as the market decreases the investors end up losing money. Hence, the investors should always be prepared by the rules and regulations of buying these properties.

• Hiring the right agent does not always mean the first agents one comes across – one must hire them only. Because it is only a good idea to find someone who knows all the nooks, and corners of the real estate market.

• Often real estate agent will recommend that one invest in a specific off-plan properties so that the chances of getting high returns increase.

If the investor has enough knowledge of the market, then they can deal with the developers on their own. It is better to have control over the dealing process so that one can get the best out of it.

When dealing on their own – it is necessary to choose the location, and then the property type like whether one needs

Deciding the area    

Deciding the property type - residential or commercial    

Deciding the profile, history, plan, and future of the project    

Once the project is completed – they can get high profits in return.