Owning property in Dubai opens up many opportunities, from obtaining residency status to generating stable income. Off-plan properties — those that are still under construction — are especially popular among buyers. Golden Bee specialists explain why purchasing such housing is beneficial and how much profit you can make from resale.
Advantages of buying off-plan property
Compared to ready-to-move-in properties, off-plan real estate in Dubai offers several advantages:
- Price: On average, under-construction property is about one-third cheaper than completed units. Market value increases gradually with each stage of construction and continues to rise even after completion.
- Flexible payment plans: Part of the price is paid before handover, and the rest after. Mortgages are available even without residency status. This is especially useful for foreign investors who do not yet have the full amount on hand.
- Developer incentives: Buyers often receive bonuses such as free service fees for several years or exemption from the DLD registration fee.
- Wide selection of properties: At the early stages of sales, the best units are available, both in the budget and premium segments. Investors can choose preferred floors, views, and other features.
The main advantage of off-plan property is its high investment potential. The lower price allows investors to buy apartments in prime areas with guaranteed high return on investment.
What to consider
Despite the obvious advantages of off-plan properties, investors should also consider the potential risks:
- Construction delays: Projects in Dubai are rarely frozen, but delays of 2–3 months are possible.
- Market fluctuations: Off-plan purchases are long-term investments. During construction, market conditions may change, causing property values to drop — an issue for those intending to resell.
- Discrepancies with the project: Rare, but sometimes the final property may differ slightly from the original plan.
Most issues can be avoided by choosing a reliable developer with a strong reputation. Information on Dubai developers is publicly available and easy to research. If you don't want to spend time studying the market, you can rely on a professional agent to select a profitable investment.
How much can you earn from off-plan property?
As mentioned above, the main advantage of buying at the construction stage is the low entry price. Investors profit from the price difference, buying off-plan units for future resale. But how profitable is this strategy?
On average, the price difference compared to ready properties is about 20%, and compared to resale units — around 12–13%. Your profit depends on when you bought the property:
- After the plan is approved and sales begin
- At the foundation stage
- During major construction work
- At the finishing stage
The closer the completion, the higher the price. For units purchased at the sales launch, the price difference compared to completed housing can reach up to 30%.
Additionally, Dubai real estate prices have shown consistent growth. Many investors wait 6–12 months after completion to sell. If the project is promising, the price may rise another 10–12% within a year.
To calculate net profit, you need to subtract all purchase-related costs (DLD fees, agency commission, etc.) and maintenance costs from the selling price.
Another advantage — no capital gains tax in Dubai. Sellers receive nearly the full sale amount, minus agency fees (about 3% of the deal) and DLD transfer fee (4%, usually split between buyer and seller).
Example:
Let’s say you bought a 1-bedroom apartment at the foundation stage for $200,000 and later sold it for $260,000 (+30%) upon completion.
- Purchase costs:
$200,000 + 3% agent commission + 2% DLD fee (sometimes covered by the developer) + $550 admin fee (~0.2%) = $210,550 - Sale revenue: $260,000
- Selling costs: 3% agent commission + 2% DLD = $13,000
- Net profit: Around $36,450, demonstrating the clear profitability of such investments.
Conclusion
Buying off-plan property in Dubai is a smart investment strategy. To safeguard your capital and choose a property with reliable value growth, it’s best to work with an experienced agent. Golden Bee specialists know the Dubai market inside out and have extensive experience with properties at all stages of construction. We’ll negotiate the best terms and ensure a safe, smooth transaction.
Contact a Golden Bee manager today and get expert support for your investment property purchase in Dubai.
