Off-plan or secondary market in Dubai: how to choose?

Choosing between an off-plan property and a resale property is one of the first decisions an investor faces in Dubai. Neither is better in absolute terms: it all depends on the project.

Off-plan: spreading the effort and aiming for handover

An off-plan purchase is paid in stages, generally linked to construction progress, sometimes with a significant share after handover. This reduces the initial deposit and leaves time to build up savings. The potential appreciation between booking and handover is one of the attractions of the scheme, though it is not guaranteed.

Points of caution: the delivery date may change, the property cannot be seen until it is built, and no rent is received during construction.

Secondary: seeing before buying

A resale property can be visited, its charges and rental history can be checked, and it can be rented out from the day the keys are handed over. The price is negotiated according to the actual condition, the floor, the view and the rental situation.

Points of caution: payment is generally required quickly, the agency commission is added to the registration fees, and the supply of quality properties can dry up in the most sought-after buildings.

Some benchmarks to decide

• A long horizon and a budget built up over time: off-plan is often suitable.
• A need for quick income: a let secondary property is more direct.
• A search for capital gain on resale: both can be defended, provided the district and developer are analysed.
• A first purchase: the simplicity of the secondary market can be reassuring, while off-plan allows you to start with less cash.

Do not forget the costs

In both cases, registration fees with the Dubai Land Department represent 4% of the price. On the secondary market, a 2% agency commission is common. On off-plan, some developers offer to cover part of these costs as part of commercial offers.

To review your project and check the conditions currently in force, book an appointment with Arzouni Properties.