The Dubai real estate sector has been a magnet to foreign investors, providing a blend of luxury, innovation, and high yields. The most critical decision for investors in this crowded market is the selection between ready and off-plan properties.
This blog discusses both options, analysing their returns on investment, risks, and primary considerations to enhance your investment experience.
Off-plan properties are those purchased directly from a developer before construction is complete. Investors buy these properties based on architectural plans and developer commitments, often during the planning or early construction phases.
Payments are typically made in instalments, with many developers offering post-handover plans. This approach allows investors to secure properties at prices lower than market rates upon completion.
Dubai’s real estate market is led by off-plan sales, with a 67% share of 2024 transactions and 2025 market growth projected at 5%.
Binghatti, renowned for its iconic architectural style and commitment to excellence, offers several signature off-plan developments in Dubai's prime locations:
Binghatti Skyrise Phase 2 in Business Bay: This development features studios and one-bedroom apartments, with a launch price of AED 1 million and a 70/30 payment plan. The project’s handover date is expected in December 2026.
Binghatti Haven in Dubai Sports City: Offering studios and 1-3 bedroom units, this project has a launch price of AED 750,000 and a 20/50/30 payment plan. The project’s handover date is expected in March 2026.
Ready properties are fully completed units that are available for immediate handover and occupancy. Investors can acquire these properties through upfront payments or mortgage financing, enabling them to generate rental income or move in without delay. This option appeals to those seeking immediate returns and tangible assets.
Binghatti also offers a range of ready projects in Dubai's prime locations:
Dusk by Binghatti in Jumeirah Village Circle: This development offers studios and 1-, 2-, and 3-bedroom apartments, with prices starting from AED 785,000 and a 20/80 payment plan.
Dawn by Binghatti in Jumeirah Village Circle: Featuring studios and 1-bedroom units, this project has a launch price of AED 734,000 and a 20/80 payment plan.
Off-Plan Properties: Typically offered at prices lower than their anticipated market value upon completion, allowing investors to benefit from early-bird rates. This pricing strategy can lead to significant capital appreciation by the time the project is completed.
Ready Properties: Priced based on current market conditions, which may be higher due to immediate availability and existing demand. Investors pay for the tangible asset and its current market value.
Off-Plan Properties: Developers often provide flexible payment plans, such as paying 50% during construction and 50% upon handover. These plans can ease the financial burden and attract a broader range of investors.
Ready Properties: Require full payment upfront or through mortgage financing. While mortgages spread the cost over time, they involve interest payments and require credit approval.
Off-Plan Properties: Offer potential for higher capital appreciation. Investors who purchase at pre-construction prices may see substantial value increases upon project completion. For instance, there was a 50% jump of value in Jumeirah Village Circle (JVC) in 2024.
Ready Properties: Provide immediate rental income, contributing to a steady ROI. For instance, ready properties yield an average of 5-8% rental ROI in areas like Dubai Marina and JVC. However, the scope for capital appreciation may be more modest compared to off-plan investments.
Off-Plan Properties: Carry risks such as construction delays, market fluctuations, and potential changes in developer circumstances. Due diligence on the developer's track record and project feasibility is crucial.
Ready Properties: Offer reduced risk regarding construction and delivery as the property is complete. Investors can assess the property's condition and market value accurately before purchase.
Off-Plan Properties: Do not generate rental income until completion. Investors need to account for this period without returns when planning their investment strategy.
Ready Properties: Enable immediate rental income, providing a swift return on investment and cash flow. This aspect is particularly appealing to those seeking prompt revenue streams.
Off-Plan Property is Best For:
Ready Property is Best For:
Off-plan property investment presents opportunities for higher appreciation potential and offers flexible payment plans, making them suitable for long-term investors willing to navigate associated risks. Conversely, ready properties provide immediate returns and lower risk, appealing to those seeking quick rental income.
Determining your investment objectives and strategies along with risk tolerance, financial liquidity, and long-term objectives is the best action for investors to make an informed decision.
Discover Binghatti's portfolio of off-plan and ready properties as well as new launches to identify the most prestigious investment opportunities in Dubai.
