Off-Plan vs Secondary Market Properties in Dubai: A Guide

Deciding to purchase a property is already a huge decision to make. Choosing the kind of property is another daunting decision to make. When investing in a property in Dubai, you have the option to settle for an off-plan property or a secondary property. Selecting any of the two has its advantages and disadvantages. This article will tell you what you should know to determine the best for you.

What Are the Advantages of Investing in a Dubai Off-Plan Property?

As you invest in off-plan property, you pay for it before it is built and transferred to you. That could be advantageous to you, especially if the property is being built in an area where it will be essential to have. You get to be one of the first to own your property and get it at a lower price.

When buying an off-plan property, you can negotiate a lower purchase price than the original cost of the unit. Good developers usually have some excellent rebates in store for those interested in reserving a unit early on in the project. Many developers are willing to do this because they get paid upon its finalization.

Another reason investors prefer buying off-plan properties is that they provide the opportunity to add more value to the unit. You can work with the developer to add additional features to the property like a pool, a gym, or a spa. These additions make the property more attractive to potential buyers.

What Are the Pros of Investing in a Secondary Property?

One of the benefits of investing in a second property is that you will be selling a property that you are already familiar with. It is crucial because it will make it easier to fix any problems. Secondary units are also typically smaller, so they are sold at a lower price. 

For that reason, they are much easier to sell. However, these properties may still need some repairs depending on how long it has been since they were built.

Foreign buyers are presently allowed to own a secondary property in Abu Dhabi under the same conditions as Emirati nationals. Some investors may argue that buying secondary market property in Abu Dhabi is safer because they get more investment control. Still, Dubai also has its fair share of outstanding characteristics, such as stable rental yields and developing new catchment areas.

What Are the Disadvantages of Investing in an Off-Plan Property?

The unit you purchase is often much different in appearance and amenities from the original unit. If you have your heart set on a specific unit, that can be a disadvantage.

Another disadvantage is that the transfer process may take longer than you would like. That is because the unit has to be completed before transferring it to your name. Because the construction of the unit can take a year or longer, you may have to wait until the unit is completed before you can enjoy it.

What Are the Drawbacks of Investing in a Secondary Property?

You may have to deal with pre-existing problems when purchasing a secondary property. If it has not been updated, you may have to deal with concerns, such as leaking pipes and faulty electrical wiring.

A secondary property could require a complete overhaul before you can change its value. You will have to be patient when you are updating the unit. Depending on the size of your secondary unit, the process could take a long time.

Maintenance is also a problem when it comes to secondary properties. Frequently, these properties are in dire need of repairs when you buy them.

Conclusion

In the light of the above arguments, it can be affirmed that both off-plan and secondary market investments have some advantages. An investor should weigh the pros and cons of each option and decide what option is best for them. Besides the comparison, it is also crucial to add other factors, such as the market state, price differential, available liquidity, developer investment vs. end-use, and mortgage offers.

If you are looking into acquiring Dubai off-plan properties, Dacha Real Estate can help you find the best ones to meet your requirements. Dacha is a top property agency in Dubai that provides high-quality real estate for sale and lease in Dubai and comprehensive property management services. Contact us today to learn how we can help.