QOne of the most common questions I receive from clients—whether they are first-time buyers or seasoned portfolio managers—is: “Should I buy off-plan or ready property?” The answer isn’t about which is “better,” but which fits your financial timeline and liquidity profile.
The Case for Off-Plan: Wealth Creation Off-plan properties are the wealth builders of the Dubai market. They allow investors to enter the market at today’s price while paying over several years.
- Payment Flexibility: With plans often requiring only 1% monthly, you can manage cash flow effectively without tying up large amounts of capital upfront.
- Capital Appreciation: As the project nears completion, the value of the unit typically increases. Investors often see a healthy increase in equity by the time they receive the keys, purely due to the construction progress and market maturation.
The Case for Ready Properties: Immediate Income Secondary market properties are the income generators. If your goal is immediate cash flow via rental yields, ready properties are the answer.
- High Yields: In Dubai’s current market, high demand for luxury rentals means you can start generating ROI from day one.
- Tangibility: You see exactly what you are buying. There is no waiting period, and you can immediately leverage the asset for bank financing if required.
Strategic Balance At Paul Fredericks Real Estate, we often recommend a hybrid approach. Using the rental income from a ready property to fund the installments of an off-plan investment is a powerful strategy to compound wealth. We analyze your liquidity and long-term goals to help you strike the right balance.
