Profits on off-plan properties in Dubai soar around completion
Villas and apartments nearing completion in Dubai are generating premiums of as much as 70 to 200 per cent a year, according to observers of the property market far higher than the 10 to 30 per cent annual premiums for completed properties.
"Properties that are commanding the highest premiums in the market are currently those nearing completion. These premiums are one of the highest in the market – higher than even completed projects," said Amr Soliman, chief executive Mena of Blu International Realty. "Generally prices make the biggest jump upwards starting six months before handover until six months after it," he said.
John Davis, chief executive of Colliers International's Dubai division, said: "Potential profit on off-plan properties is said to be higher than profit on completed projects, owing to favourable payment plans for first-time buyers."
The investor market for off-plan or under-construction purchases remains very strong. There is value in projects purchased off-plan where discounts against completed values compensate for the timeline for delivery before the property can be lived in or used for investment purposes.
Dubai Investment Property