Off plan property in Dubai seems like it is a contradiction in terms; an idea that seems to suggest that the property market in Dubai will never catch up with traditional real estate on the other side of the Atlantic. Despite the fact that most investors are well aware that there is a gap, they still insist on chasing the off plan property in Dubai. With an economy growing at over 7% annually, there is no doubt that this trend will continue. What is less certain is just how long it will be able to sustain such high rates of growth.
As a result, many of the new properties being constructed in Dubai are either planned or already underway. One of the biggest problems faced by most of these investors is that they cannot simply jump into the project knowing that it will take time. In order to capture the best prices possible investors need to know what they are looking for, where to look for it and how to negotiate a good deal for their off plan property.
Dubai has one of the most efficient real estate planning systems in the world. The projects being planned are subject to a rigid legal framework which precludes sudden changes in plan or implementation. Off plan properties must also be approved by the Dubai government in order to ensure the project follows all local laws and regulations.
In addition to following strict planning norms, investors in Dubai must also comply with the demands of the current property market. For example, while many luxury projects have been in the works for some time, these projects have not yet reached completion. If these luxury projects were to suddenly disappear the value of the properties would drop significantly. For that reason most investors wait to finalize their projects.
Dubai property developers also face a number of problems when it comes to determining the future demand for their products. Many Dubaiis who are building new homes often face the problem of oversupply. Despite planning rules and regulations investors in Dubai often build more units than the demand for each unit. Once demand exceeds supply, the developers are stuck selling off those extra units at prices higher than their development cost.
The lack of experience on the part of the Dubai government in terms of real estate development makes off plan property risky to invest in. The lack of experience also makes it difficult to determine the long-term viability of any given project. Although most off plan property Dubai projects are expected to earn profits for their owners, the potential profit is dependent on the individual investor. An experienced investor will have a much better chance of earning a substantial profit on his investment in Dubai’s off plan property market. Also, port de la mer apartments in Dubai are a good option.