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Eye of Riyadh
Business & Money | Wednesday 15 May, 2024 8:57 am |
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Dubai's Off-Plan Investment: Top 5 Picks for Saudi Investors

Investors from across the globe are still drawn to Dubai's real estate sector. The city's burgeoning off-plan property industry accounts for a large percentage of this appeal. Developments that are still in the planning stages are referred to as off-plan homes because they provide investors the opportunity to purchase property before it is finished. Among the many benefits of the off plan properties in Dubai are the possibility for substantial financial growth following completion and the reduced initial investment as compared to finished properties.

 

Reputable data sources such as the Dubai Land Department indicate a consistent rise in off-plan purchases, which underscores investor trust in this particular market sector. Savills' Q1 report states that off-plan sales in Dubai rose by 39% yearly and 73% in the first quarter compared to the prior year. Dubai's strong economic outlook, its status as a worldwide corporate centre, and the ongoing construction of top-notch infrastructure are some of the reasons contributing to this rise.

 

Benefits of Off-Plan Investment

Purchasing off-plan real estate in Dubai has a number of significant benefits over buying finished residences. Here are some of the main perks to consider:

 

Lower Upfront Costs

Rather than requiring the whole amount required for finished apartments, off-plan homes often demand a smaller upfront payment of between 10% and 25% of the total price. This lowers the required starting capital.

 

Potential for Capital Appreciation

Over the course of construction, the project's worth will likely grow once it is finished. Between the time of purchase and final completion, investors could witness a significant financial appreciation.

 

Flexible Payment Plans

For off-plan purchases, developers provide convenient payment plans that let customers spread out the remaining amount over many months or years. This aids in cash flow management.

 

Wider Selection

Investors have a larger range of unit types, locations, sizes, and floor plans with off-plan developments that are currently under construction.

 

To understand the property buying process and make informed decisions, you can explore Bayut’s guide on How to Buy Property in Dubai. This guide explains the process outlining the 4 key steps: finding a property, signing an agreement, getting a NOC, and transferring ownership. It also covers costs, property types, and common pitfalls to avoid.

 

Top Off-Plan Projects in Dubai

The off-plan real estate market in Dubai is still going strong, providing investors and homeowners with a wealth of choices. Below is a thoughtfully chosen list of the top 5 projects:

 

Burj Binghatti Jacob & Co. Residences, Business Bay (Completion: Q2 2026)

Binghatti Developers' landmark new project, Burj Binghatti Jacob & Co. Residences are situated in the heart of Business Bay. When completed, it will be the highest residential skyscraper in the world, reaching a record-breaking 700 metres.

 

The project features a variety of opulent residences, including mansions, penthouses, and apartments created in association with luxury brand Jacob & Co. While mansions provide 4 and 6 bedrooms, apartments include 2, 3, and 5 bedroom layouts. It is expected to be finished in Q2 2026. Every apartment has floor-to-ceiling windows that provide breathtaking views of Dubai. For an ultra-luxurious living experience, the homes have private pools and unmatched facilities.

 

Apartment prices start from AED 6.5 million (SAR 6.63 million approximately) according to Bayut and penthouses start at AED 13 million (SAR 13.27 million approximately). Payment plan: 80/20 (Down Payment 10%, 70% during construction & remaining 20% on handover)

 

DAMAC Bay by Cavalli, Dubai Harbour (Completion: Q3, 2027)

DAMAC Properties has collaborated with Italian fashion label Cavalli to create DAMAC Bay in the thriving Dubai Harbour neighbourhood. When completed in July 2027, this branded property will exemplify the Cavalli lifestyle with its unique architecture and decor.

 

Luxurious duplexes with three, four, and five bedrooms are available in addition to flats with one, two, and three bedrooms. For the convenience of buyers, payment plans are flexible.

 

Residents have access to a rooftop opera pavilion, a private beach, and views of Ain Dubai, the biggest observation wheel in the world. Cavalli's influence brings stylish living to Dubai's shoreline.

 

Prices start at AED 2.2 million (SAR 2.24 million approximately) for 1-bed apartments and luxury penthouses starting at AED 35 million (SAR 35.73 million approximately) according to Bayut. Payment plan: 60/40 (Downpayment 20%, 40% during construction & remaining 40% on handover)

 

Expo Valley, Expo City Dubai (Completion: Q4 2025)

At Expo Valley, Expo City Dubai, cultivate enduring family memories while embracing a sustainable lifestyle. This dynamic neighbourhood, which is expected to be completed in Q4 2025, provides the ideal combination of roomy villas and efficient townhouses.

 

Expo Valley, which caters to families, has beautifully planned 4 and 5-bedroom villas with plenty of living space and private gardens—perfect for setting up a nurturing atmosphere. Alternatively, consider the practicality of well-planned townhouses and duets, which provide the ideal ratio of comfort and cost.

 

4-bed villa prices start at AED 4.6 million (SAR 4.69 million approximately) and townhouses start at AED 3.3 million (SAR 3.36 million approximately). Payment plan: 45/55 (Down payment 10%, 35% during construction,  5% on handover and remaining 50% post-handover)

 

The S Tower, Al Sufouh (Completion: Q4 2024)

The S Tower, a stunning skyscraper rising in Dubai's Al Sufouh neighbourhood, offers the pinnacle of modern living. The S Tower, which is expected to be completed in Q4 2024, offers opulent living areas with breathtaking city views.

 

Indulge in comfort with substantially proportioned half-floor 4-bedroom flats, each taking up a considerable piece of a floor. The luxurious full-floor 5-bedroom apartments, which give you the whole floor to yourself, are a great option if you want the utmost in seclusion.

 

Prices according to Bayut start at AED 15.8 million (SAR 16.14 million approximately) for 4 BHK units and AED 45 million (SAR 45.9 million approximately) for 5 BHK luxury apartments. Pricing plan: 60/40 (Downpayment 20%, 40% during construction & remaining 40% on handover)

 

The Palm Beach Towers, Palm Jumeirah (Completion: Q1 2026):

Imagine yourself waking up at The Palm Beach Towers to the stunning views of the beach and the soft murmur of the Arabian Gulf. Completed in Q1 2026, this property provides the ideal island living experience, nestled on the famous Palm Jumeirah.

 

Select from an array of opulent apartments with one, two, or three bedrooms, each expertly built to optimise the allure of the waterfront setting. Envision relaxing on your own balcony while taking in the sun and the unmatched island way of life.

 

According to Bayut, the 1 BHK prices start at AED 2.58 million (SAR 2.63 million approximately) and 3-bed units start at AED 7.5 million (SAR 7.65 million approximately). Payment plan: 60/40 (Down Payment 15%, 45% during construction & remaining 40% on handover)

 

Remember: These are the starting prices. The actual cost may be different based on the view, floor level, and size of the unit.

 

Conclusion

Market expertise, strategic planning, and a methodical approach are all necessary for an off-plan investment to be successful. With the help of this article, you will get an overview of the top off-plan properties to successfully navigate Dubai's constantly evolving off-plan market and make well-informed investment selections that complement your desired lifestyle and financial objectives.

 

Frequently Asked Questions

Q1) Is there any financing assistance available for off-plan properties in Dubai?

 

A) A lot of developers in Dubai do provide post-handover choices or flexible payment arrangements, such as a 20% down payment at DAMAC Bay. They differ, so do your homework.

 

Q2) What are the potential risks associated with investing in off-plan properties?

 

A) Since delays are common in real estate, account for any changes in the handover date. To prevent surprises, find out about the developer's past performance as well.

 

Q3) What are the additional ongoing costs to consider besides the purchase price?

 

A) It is advisable to include these recurring costs in your off-plan investing budget. Think about utilities, furnishings, continuing service fees, and possible future property taxes.

 

Q4) Can Saudis benefit from off-plan investment in Dubai?

 

A) Off-plan investments in Dubai offer Saudis lower entry costs, potential for capital gains, and flexible payment plans. Completed properties can generate rental income. Explore government incentives like Golden Visa (10-year residency for real estate investors buying property worth at least AED 2 million or SAR 2.04 million) for added benefits.

 

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