Off-Plan vs Ready Property: Which Should You Choose?

For several years, off-plan properties have emerged as the favorite among real estate investors and homeowners.

According to DXB Interact, sales of off-plan properties have outpaced ready properties by thousands in the past several years.

Although you can consider this statistic in your decision if you’re in the middle of an off-plan vs ready properties debate, it shouldn’t be the main factor. There are other things you must consider before making your choice.

Settling the Off-Plan vs Ready Properties Debate

Below are five important factors to consider when choosing between off-plan and ready properties:

1. Reason for Buying Property

Your reason for investing in property in the United Arab Emirates is an important factor that can point you to the right investment decision.

Ready properties are your best options if you need to buy a home as soon as possible. As their name implies, these apartments and villas for sale in Abu Dhabi, Dubai, and other cities have already been constructed, so you can move in anytime.

Some ready properties are also furnished, which means you can save money and time on buying furniture and fixtures.

Off-plan properties are worth looking into for investment purposes. They typically come at lower prices and offer options for income streams. However, you have to wait for several months or even years for these projects to be completed.

You can avoid the long wait by choosing projects that are finished or nearing completion.

2. Customization Options

Whether you’re buying a home for personal or investment reasons, you may want to add special touches to the property to make it your own.

Off-plan projects give you more freedom to customize the property. You can have a say on the layout, design, finishes, and fixtures for a more personalized living space.

Although you can customize ready properties, your options may be limited to superficial changes and simple renovations since they are already built. However, there are still many ways to add your personal touches to these homes.

These include installing your choice of wallpaper, curtains, or blinds, and decorating your home with art pieces that convey your style or taste.

These decorating tips can also help you personalize your customized off-plan property if you think it still needs additional touches.

3. Potential Returns

It pays to think about ways to earn money from your real estate investment in the UAE. You can look into income streams from renting out the property once you own it, or its potential resale value when you need to move to a bigger house or another country.

Ready-to-move-in properties can be an immediate and reliable source of income when rented out. If you need to sell it quickly, you can get an instant return on your investment since they can be sold anytime.

On the other hand, off-plan properties allow investors to benefit from the buy low, sell high strategy. As such, they offer high returns once completed, and their market values rise.

Real estate projects to be completed by the best developers in Abu Dhabi are also less expensive, so you are more likely to get higher returns when you sell them.

4. Risk factors

Ready-to-move-in and off-plan properties vary in terms of associated risks.

Properties ready for occupancy come with fewer uncertainties since they are already built. They are less likely to be affected by unexpected issues, such as changes in building codes and delays that may arise during construction.

You can also inspect these properties at any time. You'll be able to see structural issues or other problems that can help you decide whether to buy the home or move on to another one.

You can also resell or rent out the property (or parts of it) and earn high returns or rental yields whenever you want to.

Off-plan projects tend to come with some risks. These include potential construction delays and real estate market fluctuations.

There is also a chance that the property may not meet your expectations even if you specified some customizations. This is because you can’t see the unit in its entirety until it is completed.

Off-plan property won’t allow you to earn immediately from your investment since you won’t be able to turn it into a rental until it has been turned over to you. However, you may be able to sell it even before completion if the contract allows it.

You can reduce the risks associated with off-plan properties by choosing a trusted developer with a good track record.

5. Budget and Financing Options

The amount you can invest now and the recurring payments (if any) you have to make should also be considered in your decision to buy ready or off-plan property.

Ready-to-move-in properties are usually more expensive than off-plan options. Some owners and developers may require a higher down payment. They may also give you less leeway with negotiations and payment plans since the home is available for occupancy.

The upside of ready properties is that your chances of getting mortgage approval are higher.

Many developers of off-plan projects offer discounts, flexible payment plans, and other perks. These make the initial outlay and recurring payment easier on the pocket.

However, some banks may have strict financing requirements for off-plan projects. If you’re considering this option, ask the developer for banks and financial institutions they work with to increase your chances of getting approved. 

Which Property Is Right for You?

Both ready and off-plan properties come with advantages and disadvantages. You can choose the best option by determining your reasons for buying a home, investment goals, preferences, and financial capability.

You can also work with a real estate expert who can guide you in the right direction and help you make the right investment decision.

Contact us for more details about our properties for sale in the UAE.