Research & Decision
Michael researched Dubai’s off-plan market and discovered:
- Off-plan properties offer up to 30% lower entry prices than ready properties.
- High-demand areas like Dubai Creek Harbour and Business Bay have historically shown significant capital appreciation of 20-40% upon project completion.
- Developers often provide flexible payment plans, with 50% payable during construction and the remaining 50% post-handover.
Investment Process
Michael selected a 2-bedroom off-plan apartment in Dubai Creek Harbour, priced at AED 1.8 million (USD 490,000).
- The developer offered a 3-year post-handover payment plan.
- The property was expected to appreciate by 25% upon completion, based on trends in similar developments.
- Booking Fee: Michael paid 10% upfront (AED 180,000).
- Construction Payments: He paid installments of AED 90,000 every six months during the 3-year construction phase.
- Post-Handover: The remaining 50% was split into equal monthly payments over 3 years.
"Investing in Dubai has been an incredible experience. The guidance I received and the returns I’ve seen have exceeded all expectations. It’s the best decision I’ve made for my portfolio."
Michael Carter
- Capital Appreciation: By the time the project was completed, the property’s value increased to AED 2.25 million (USD 612,500), delivering a 25% gain in just 3 years.
- Rental Income: Michael leased the apartment for AED 140,000 per year, yielding a 7.8% gross rental return.
- Cost Advantage: Michael saved 4% on Dubai Land Department registration fees, as the developer covered these costs as part of the promotion.
Why Off-Plan Investments Work in Dubai
- Lower Entry Costs: Affordable prices and payment plans make off-plan properties attractive to global investors.
- High Demand: Strategic locations and growing population drive strong post-handover demand.
- Developer Incentives: Discounts, fee waivers, and extended payment terms enhance profitability.
- Capital Growth Potential: New projects in prime areas consistently deliver high appreciation rates.
Gross Rental Return
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Capital Appreciation
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