Dubai is offering numerous reasons for investors to consider enter to the Dubai Real Estate sector. One in particular is the high return on investment as the market continues to grow. The city’s population increases each year thus, there will be a high demand of every type of property.
Since the announcement of Expo 2020 in Dubai, developers are offering various off-plan properties and ready properties with unique styles and concept. Around 10,759 off-plan units were sold in Dubai for the first seven months of 2018 according to GCP-Reidin. While on the ready property side, 7,205 ready apartments changed keys in the January to July 2018 period across Dubai.
Now here we are going to discuss the difference between Off Plan and On Plan / Ready properties along with their pros and cons. First we have to know the difference between both.
Off Plan Property: An off plan property is a property before any structure has been constructed upon it. Pre-constructions are usually marketed to real estate developers and to early investors so that the purchaser can secure much better in terms of finance.
On Plan Property: On plan or ready property Refers to a house or property that is ready for an immediate occupancy. A property in this condition must be ready and must meet all requirements by the city and governing municipality.
Now let’s get into the pros and cons of both types of properties so it will be easy to decide which one suits your better.
- Since you don’t have to make the complete payment at once, there is a reduced burden on your finances as compared to on-plan properties that requires immediate payments.
- The price of off-plan properties is usually lower than the on-plan ones thus save you heaps of money.
- Most developers offer multiple incentives to off-plan property buyers.
- Banks and financial institutions also tend to offer attractive financing plans for an off-plan property purchase.
- It is simply a ‘buy now and pay later’ model.
- It gives handsome returns on the investment.
- You do not have control on the property till you have it.
- You also get no profits till the property is built.
- Off-plan property projects can get delayed for various reasons.
- You have complete control on your property from the time of purchase.
- You can lease your property immediately and start earning the rental income.
- For any reason, if you want to sell the property, you can sell it any time.
- The complete price needs to be paid at once because most of on-plan properties do not offer flexible payment plans.
- On-plan properties are costlier than their off-plan properties since the property is fully built and ready to move into.