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Walking into the showroom, an investment banker from Singapore admires the skyline, imagining a view from fifty stories above ground, where the air shimmers and possibilities become reality. Betting on Dubai’s concrete dreams isn’t just high stakes but a sound investment opportunity.
“A few years ago, you’d be standing in an empty desert”, says Sunita Gill, cofounder and COO of Singapore Luxury Homes, “but the rewards of Dubai’s grand vision for the city of the future are clear. Here, fortunes are built on seeing potential where others see only sand.”
Appeal of Off-Plan Investments
Gill is part of a growing cohort of international investors betting on Dubai’s off-plan property market. This high-stakes game involves purchasing properties before a single brick is laid. The sector is booming, with off-plan sales in Dubai surging.
According to data from the Dubai Land Department (DLD), the off-plan property sector in Dubai experienced a major boost, growing by 80% in Q2 2024 compared to the previous year. This marked the first time off-plan sales accounted for more than 60% of total property transactions.
But as the Emirate’s real estate market continues its positive uptrending ride, the question on everyone’s lips is: Is buying off-plan in Dubai a shrewd investment or a fool’s errand?
“It’s not for every investor,” warns Kaizar Karkaria, cofounder and CEO of Singapore Luxury Homes. “But for those who understand the market, the potential returns can be substantial”.
BAYZ101 by Danube
Be invited to own a piece of the Dubai skyline with its stunning apartments offering panoramic views of Burj Khalifa and Downtown Dubai. As one of the tallest towers in the city, this crown jewel features 1105 units ranging from studios to 4-bedroom apartments, starting at AED 1.175 Million.
Located in Business Bay, Dubai, BAYZ101 offers an attractive 1% monthly payment plan, making luxury living more accessible. With an anticipated completion date of June 2028, this development promises to be your ultimate home in the sky, combining breathtaking vistas with the prestige of living in one of Dubai’s most iconic structures.
Understanding Off-Plan Properties in Dubai
Indeed, the allure of off-plan properties in Dubai is hard to ignore. Developers offer tantalising payment plans, some requiring as little as 10% upfront and the rest spread over the years, even after the property is handed over. Karkaria mentions, “for cash-rich, yield-hungry investors, it’s an attractive proposition”, with some properties appreciating by upwards of 30% by the time they are completed.
The potential upside might be too good to pass up in a world of near-zero interest rates.
However, for every success story, there are cautionary tales. The global financial crisis of 2008 saw many off-plan projects in Dubai stall or be cancelled altogether, leaving investors in the lurch. While the market has matured since then, risks remain.
“Due diligence is absolutely crucial,” emphasises Gill. “Investors need to scrutinise the developer’s track record, the project’s escrow account and the fine print of the sale agreement”.
Navigating Dubai’s property market can be particularly daunting for foreign investors. Unlike some markets, Dubai allows foreigners to buy freehold properties in designated areas, but the process isn’t without its complexities.
“The rules around off-plan purchases for foreigners are generally the same as for locals,” explains Gill. “But there are nuances, particularly around financing, that foreign investors need to be aware of.”
When considering an off-plan property investment in Dubai, it’s crucial to understand the associated fees. Depending on the developer and project, the initial deposit for off-plan properties typically ranges from 10% to 20% of the property value. Additional fees may include:
- Dubai Land Department (DLD) registration fee: 4% of the property value, with an additional 4000 AED
- Real estate agent commission: Usually around 2% (if applicable) + 5% VAT
- Developer’s administrative fees: Vary by developer, typically 1-5% of the property value
It’s worth noting that these fees are often spread out over the construction period as part of the payment plan, easing the immediate financial burden on investors.
Rashid Yachts & Marina
Imagine waking up to the gentle lapping of waves and the sight of luxury yachts bobbing in the marina. That’s the daily reality at Rashid Yachts & Marina, Emaar’s latest gem on Dubai’s coastline. This isn’t just another development – it’s a new way of living by the sea.
Perched on the Arabian Gulf, Rashid Yachts & Marina is set to become the go-to spot for yacht enthusiasts and luxury seekers. But you don’t need to own a boat to call this place home. With apartments ranging from cosy one beds to spacious three-bedroom units, there’s something for everyone. Prices start at AED 1,641,888, which might sound steep, but consider what you’re getting: a front-row seat to Dubai’s glittering coastline, world-class amenities, and the bragging rights of living in the city’s newest maritime hotspot. Whether you’re a sailing buff or just someone who appreciates a good sea view, Rashid Yachts & Marina is worth a look. After all, how often do you get to live where others vacation?
One of the most attractive aspects of Dubai’s off-plan property market is the flexibility of payment plans. Developers in Dubai offer a variety of payment structures to suit different investor profiles. Common payment plans include:
- 80/20 plans: 80% paid during construction, 20% upon completion
- 60/40 plans: 60% paid during construction, 40% upon completion
- 50/50 plans: 50% paid during construction, 50% upon completion
- Post-handover payment plans: Extending payments beyond the completion date
Some developers even offer more generous terms, with payment plans extending up to 5 years post-handover. These flexible options make off-plan apartments for sale in Dubai particularly attractive to investors looking to manage their cash flow effectively.
Financing, Mortgages and Generating Income
Another nuance is mortgages. While getting a mortgage for an off-plan property in Dubai is possible, the terms can be less favourable than for completed properties. Most banks will only finance up to 50% of the property value, and often, the loan only kicks in upon completion.
It’s a chicken-and-egg situation. Banks want to see a completed property before lending, but investors often need financing. This financing conundrum has led to the rise of creative payment plans from developers. Emaar Properties, one of Dubai’s largest developers, has been particularly aggressive in this space, offering post-handover payment plans of up to five years on some projects.
Skyscape Aura
Skyscape Aura, the sequel to Skyscape Avenue, brings a new level of luxury to Sobha Hartland II in Dubai. Offering 1 to 3-bedroom apartments starting at AED 1.71M, this development blends lagoon tranquility with Downtown Dubai’s vibrancy. With world-class amenities and stunning views, Skyscape Aura isn’t just a home—it’s a lifestyle upgrade. Experience waterfront living where every day feels like a five-star getaway, all while being close to the heart of Dubai.
These plans allow investors to generate rental income from the property before they’ve even paid it off in full.
“Always have an exit strategy,” advises Gill. “And never invest more than you can afford to lose.”
Buying off-plan property in Dubai presents a unique opportunity for high-net-worth investors to enter one of the world’s most exciting real estate markets. With its innovative developments, flexible payment plans, and strong potential for returns, Dubai’s off-plan market continues to attract global attention. As with any significant investment, careful consideration and expert advice are key to making informed decisions that align with your long-term financial goals.
Contact our international real estate consulting team at Singapore Luxury Homes for personalised advice on investing in Dubai’s property market and to explore how you can capitalise on Dubai’s dynamic real estate landscape. Through our collaboration with top-tier international partners in Dubai, we provide insights into the latest opportunities and guide you through securing off-plan properties in Dubai.
