Opinion : Investing Off-plan in Dubai Property

Do you get a good deals when purchasing a condo off plan— i.e. in a building not yet built?

With “off plan” in general, in any country… There is a lot of risk that things will go wrong. What? Zoning requires different plan and you either pay more or end up with an unsaleable unit. It happened to me once: a beautiful sea view on the plan turned into a view of a blank wall. My apartment had half the projected value. Then too, Developer or lender can go bankrupt. Contractor can screw up.

In short, you have no control over the variables, and in such cases, it is never a good idea to risk your money. If you are foolish, don’t count on a “greater fool” to bail you out.

But as another answer suggested, when the final payment comes due and the bldg is finished, a lot of people who intended to flip (resell) are stuck with the property & no money to pay—or they don’t qualify for a long term mortgage. So they will lose their deposits. That’s when you can pick up a ready-to -move in-to property at a big discount. That is what happens in MOST cases. You can always pick up distress property at way below “list price.” That is how I made most of my money in real estate. 

Only fools rush in and are sold “off plan” properties at a nice catered meal & high pressure sales pitch. That is “buying at retail,” when you should be buying at wholesale. 

PS: That said, I am sure that in a small percentage of the time, in a rising market, a few people are happy to have invested off plan.

by PT