Thanks to a host of government initiatives aimed at increasing the population of the UAE, the need for rental property continues to grow. These conditions make off-plan investments in the UAE, and specifically in Dubai, a far more lucrative option for prospective investors looking to make a profit renting out their property or reselling it after it is completed. Further fueling the demand in the off-plan sector are the high interest rates and mortgage rates for ready properties.

Real estate developers often offer advantageous and flexible payment plans and lower initial purchasing costs for off-plan rather than ready properties, making this option particularly attractive to both investors and potential primary homeowners who are paying cash or are already approved for a mortgage.

Off-plan is increasingly becoming the more preferred investment route in Dubai – more than 50% of all sales in 2022 were in the off-plan segment. Last month recorded over 10,000 transactions demonstrating the highest volume and value of transactions in the month of June in a decade.

Purchasing off-plan real estate is not without risks, of course. Before making a decision, buyers should consider the developer’s reputation and background to better determine the likelihood of the project meeting the expected completion deadline, being cancelled, or having below standard construction quality.

Another risk is the possibility of the property value decreasing by the time construction is completed, due to changes in the market and price booms in the area where the real estate was purchased. Analysing market trends and economic indicators is crucial to making the right off-plan investment decisions.