The ongoing urbanization keeps the demand for affordable housing high and growing in pretty much every metropolis area all around the world. However, being affordable is not enough as many people including young professionals and students prefer living as close to the city center as possible. Those two factors are rather hard to balance, but there seems to be an easy solution, after all — we’re talking about off-plan properties here.
Looking for entire development projects in Abu Dhabi
Abu Dhabi is one of those metropolises where people actively search for off-plan real estate, and that means owning such property there may be pretty profitable. There are many ways to find off-plan property in the area, and the most obvious one is: look for entire developing areas with multiple building options. For example, there is The Marina community with nice villas overlooking the bay, or there are houses being currently built on Yas Island.
You may also be interested in the development project on Saadiyat Island. Here you may find lots of various housing types: from modest one-bed apartments to luxurious villas overlooking the beach. However, sometimes the best off-plan property isn’t that obvious. Potential buyers should look deeper into all the characteristics of the object. But there are still a couple of solid rules we’re going to share with you.
Important things to consider when looking for an investment object in Abu Dhabi
First of all, consider getting some professional advice from a real estate agency. Looking for property all by yourself may be quite tough. But if you still want to try it, make sure to check out the developer’s reputation. Use public sources to verify their credibility and history of past construction. Check out the official developers register to ensure the company has a license to build housing. This way your funds will be protected by the law.
Secondly, always find as much information about the building site as you can. If necessary, be wise enough to visit the site yourself to confirm that everything’s okay. You should check the most crucial services like roads, schools, shops and hospitals. The view is also a crucial factor for your future residents. We advise you to talk with the locals on the spot to learn about things that are not that obvious but can become problematic later on.
- road network and public transportation;
- schools, hospitals, shops and other services;
- proximity of the sea and the overall view;
- what locals have to say about their community.
Now it is time to look at the property itself. The most important thing to consider is the rate of completion. Almost finished objects make a more secure off-plan property investment while being more expensive, though. You should also check the quality of the building — do it while still on the site. Pay attention to the materials and overall looks. And if there’s nothing to look at yet, visit other buildings by the same developer.
And if everything seems alright, there’s the last thing: doing the calculations. Specify what is the price of the off-plan property in Abu Dhabi you’re planning to buy and compare it with the payments you expect to receive from your future residents. If you’re buying the apartment via mortgage, make sure to include that in the calculations and consider the payment plan.
<kbd>The entire price of the object should not be paid in full before the work is done 100%</kbd>
It’s very wise to know what ROI (return on investment) rate you’re going to get. It should be somewhere between 6 and 9% — yes, that much: Abu Dhabi has a remarkably high ratio of return on real estate investments. You also want to know what additional services the seller is going to provide after the deal is done. Developers often relieve you from tiresome procedures after the purchase by taking on all the paperwork.
We hope that our little guide was useful for you. Now you know a bit more about what to look for while searching for off-plan housing in Abu Dhabi. Check the developer, the site, and the payment plan — and calculate your return on investment rate. And if anything goes wrong, it is never late to address to professionals.