Attractive off-plan price can be sometimes misleading
Date: 05 July 2017
The attraction of “best price” deal for off-plan properties in Dubai real estate can become misleading for the investors, when this element can remove the focus away from the end user attractiveness.
Glossy brochures and price deals distract the investor attention from the important factor of understanding how attractive the new development could be for end users, those tenants who shall create yield or future buyers.
Once completed, the finished project could reserve some surprises and it could become in fact much less attractive than the plan and impose some upsetting lower income.
The same situation could result also for the price for sq ft when it does not reflect the average of the area and, if it is considerably higher, might keep the future tenant or buyer away, resulting in a property that becomes hard to generate the expected profit.
The solution could be to choose the right partner, experienced and with the right market knowledge.
The 2008 crises has taught an important lesson on this regard to those companies and brokers who where operating in Dubai real estate and they would generally use their competency to present a transparent analysis and a the right risk assessment.