When you indulge yourself in UAE real estate, you are offered two different types of properties; Ready or resale properties and off-plan property units.
Ready properties are those which are fully built and are available for immediate occupation or use such as for further sale or rent. Whereas, Off-Plan properties are long-term buying projects, where the buying deal is made earlier during or before infrastructure construction.
Now the question comes which property type you should go for when investing in UAE real estate in order to make a wise decision. To have an answer to this question let’s get to know the pros and cons of Off-Plan and ready properties.
Pros of Off-Plan
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Lower Initial Investment
In the UAE, off-planning property investment is like “giving less and getting more” because the UAE has had strong real estate yields for many decades. As a buyer, you can secure properties just by giving less initial deposits than their future yields.
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Potential for Higher Return
Buying off-plan properties will yield a significantly greater amount (higher ROI) than the invested one, once the property is fully constructed. Investors will also benefit from capital appreciation on property construction, which results in getting substantial profits.
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Customization Options
In off-plan properties, buyers have the customization opportunities to design or add their preferences to the property’s infrastructure layouts to meet their living desires.
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Payment Flexibility
Off-plan property developers also offer flexible payment plans which allows the buyers to easily manage payments over the construction periods till completion without disturbing their financial situations.
Cons of Off-Plan Properties
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Off-plan properties come with the uncertainties and risks of construction delays which can disrupt investors’ financial plans.
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You will not receive immediate rental income
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Fluctuating marketing conditions and property demands are also major factors and enhance risk factors in opting for off-plan property units.
Pros of Ready Properties
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Immediate Availability
Compared to off-plan units, ready properties are right away available for use. As a buyer, you will have full authority after buying the property to use it for living or renting it for potential income generation.
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Guaranteed Quality and Condition
You won’t have to worry about the quality and condition of the property’s infrastructure as you can fully check every detail of the property you are about to purchase. It gives you peace of mind and trust in your property.
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Potential for Immediate Rental Income
Unlike off-plan properties, you can have immediate rental income with ready properties which removes the risk of your future financial plan.
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Lower Risk Profile
You don’t have to face the issues and risks of delayed construction and disruption and worry about property demands or market rate fluctuations.
Cons of Ready Properties
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In Ready property units, buyers will face higher initial investment unlike in off-plan properties.
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As a buyer or investor, you don’t have many customization options to add your preferences to the property’s infrastructure as the design is already finalized.
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In ready properties, there is a lower possibility of getting capital appreciation.
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You also observe limited property availability in demanded areas with greater buyer competition.