Buy Now or Wait? The Truth About Off-Plan vs. Ready Properties

There are numerous options available in the real estate market, not to mention the dynamic real estate market of a city as rapidly evolving as Dubai. So, don't take it as a surprise when you run into properties that are both off-plan and ready-to-buy. What are these properties, though? What do they mean? What should you buy? Well, if these are the questions popping up in your head, don't worry, this guide will let you know about both options to help you make a decision and decide which of the two is a better fit for you.

What is an off-plan property? Well, it's a property, or more simply, it's land before there is any type of structure or construction. Well, that’s the traditional definition anyway, even if there is construction that is partly built or sometimes even completed can still be considered off plan.

So, why would you want to buy this type of property? Well before considering buying property at all, it's important to know what your goal essentially is with the property rather than the property itself. Take all factors into consideration, the investment, the potential of, and the profit you could make, and the risks that are involved.

Once you know what it is you want, only then can you know what to look for. The next step to consider is whether the type of property you’re interested in is for commercial purposes or a residential property, this is especially important to pay attention to when looking at off plan investments because there is usually a long time lapse between the issuance of the debt and the time the development will be completed.

Who is it that buys off-plan properties, and what kind of buyers should consider it? Well, one of the main features of most off-plan properties is the fact that they are considerably less expensive than those that are in a completed state. During periods of construction, it's very common for the value of an investment to go up, especially in areas that are more desirable or upcoming development areas. These are spots that investors are more likely to put their money towards.

As mentioned before, one of the biggest advantages of buying off-plan property is that you save a lot more money than with a completed property, and when the value appreciates, it's a lot more profit. Why is this? Well, technically speaking, the property doesn't really exist physically, but more so exists on paper. And because the developer that sells these properties is going to put in considerable effort into their marketing, the value will go up, which in turn will result in better profits. It's a way to make quick capital gain.

Another advantage is that if you’re not ready to pay such a big amount at once, the payment plans tend to have more flexibility; you can go on a yearly plan that splits the payment on a monthly basis, making the financial burden more manageable.

As these properties are part of recent developments, it's guaranteed that they will also have the most modern and up-to-date facilities and amenities, smarter designs, more advanced, you can say, such as

• Community centers
• Business lounges
• Technologically advanced gyms
• Temperature-controlled pools

Well, cheap and good payout? Obviously, such a good offer can't come without some drawbacks, and like everything else, there are good and maybe not necessarily bad, but some things to keep in mind when looking into off-plan properties.

If you don't do your research or if there is a funding issue that pops up later, meaning if the developer happens to run out of cash, this can result in the halt of a project, or if it drags out for longer, the project may not be able to be completed. To a certain extent, time causes the value of properties to rise, but after a while, your investment becomes stuck, and the property starts to depreciate instead. So, this is something to investigate when considering this investment. Look into the history of the developer and whether they have had these issues before.

Lucky for you, though, in Dubai, the risk of the property developer default is no longer a problem thanks to escrow agents. What do they do? Well, escrow agents are a third party that essentially protects the buyer's investment, and they hold the payment from the seller unless all the clauses on the signed deed have been met.

Another issue can be a delay in the construction, which is not always an issue of money, as mentioned above, but that can be one of the reasons. Most of the time, it can be due to changes in any laws or regulations, maybe the price changed, or there was a shift in the market, or there can also be problems with authorities that need to be handled before carrying on with the construction.

Another drawback is that when you decide to invest in property that hasn't been made yet, there can always be some change, and even aside from that, you never really understand the full picture, and don't have the most information about what the finished product is to be. No one will stop you from making scheduled visits so you can evaluate the quality of the build yourself, but this is only if the construction is underway, so you never know if the result is what you wanted.

As you probably already guessed, ready properties are completed units that are available to be bought out and used or to live in. You can even visit the property, evaluate the work that was done, and decide whether the end product is something you want to invest in.

These properties are great to look into if you're a buyer who wants assurance, there's no timeline that makes you wait, and you don't have to guess anything; you get certainty. These properties are also something to consider if you want some fast or instant rental income or if you have a family that wants to settle down as soon as possible.

Of course, these benefits do come with a price, since they’ve been presented to you in the completed stage, the upfront cost of the property can be high, and there is not always a lot of room left for you to customize anymore, as most of the work has already been done. But for a lot of people, they find that part of the buying a hassle anyway, so the load taken off can be worth it to many buyers.

Well, I think the best part of this deal is that you can move in whenever you're ready or start getting ready to rent it out whenever you please. As soon as you close the deal, it's yours to do as you please, making it a great deal for those move-in-ready families.

Unlike off-plan properties, you can evaluate the final results and decide after you know that you're happy with the outcome. You have a good idea about the quality of the build, the materials used, and being able to look into these features can save you from a lot of loss in the future or keep you safe from possible hazards.

As off-plan projects are new and upcoming projects, they are really high in demand, this is because the developer puts in a lot of marketing effort that is often pushed by the company. On the other hand, ready properties are second-hand, which means they already have existing owners, and they've been up for sale for quite some time by the time you go to look at them. So, you can bring the price down and get a better deal, or find another seller that will give you the deal you want.

Obviously, like all good things, there are downsides to everything. So, what are some things to think about before you make the next step? Well, as previously mentioned, there’s not much room for customization. If you had a specific idea in mind for the type of house you wanted to design, maybe something that's already been made for you isn't the best choice.

If the property is not fresh out after the construction, then obviously it had a previous owner who may have used it. You may need to be open to the fact that the place is lived in, and there will be some signs that show it, too. This can add to the cost depending on whether there are any damages or how much it bothers the buyer, so make sure to inspect the property as well as you can to avoid high repair costs.

Ultimately, it all depends on what it is you're looking for, whether it's personal use, investment, or the patience you have.

Off-plan may be the better option for those who are more focused on their future goals and know they have to put in some money and effort now to get the payout later. Ready properties are the way to go for those who want what they're looking for and don't have the time to wait around.

In a market that's as dynamic as the real estate market of Dubai, no opportunity goes to waste, nor do you have a shortage. Whether you're looking for your next dream house or trying to play it smart and bring in the money, understanding both of these paths allows you to make a smarter decision with more confidence.