Ready or Off Plan Property: Which One is a Better Buy?
Generally speaking, you will come across two types of property in the Dubai market: ready and off plan property. Off plan property are new property launches from the developers. Ready-made, as it sounds, are built properties, which can be new or previously owned in matured and established residential areas. Both have their set of advantages and considerations.
In this guide, we will explore the differences between ready and off plan property, and go through some key points to help you figure out which option suits you best.
Ready and Off Plan Property in Dubai
Let’s look at some stats.
According to DXB’ “Ready vs Off Plan Property Sales”, off plan property accounted for 60% (vs. ready-made 40%) of total sales volume in 2024, confirming that investors in 2024 prefer ready-made properties in Dubai.
Did you catch that too? Over the past three years, there’s been a noticeable shift in demand (check out the charts below) towards off plan apartments and villas in Dubai.
Sure, investors still lean towards ready-made properties, but off-plan options are showing no signs of slowing down.
As an investor, how do you choose?
Ready vs Off Plan Property: Advantages & Disadvantages
Understanding the pros and cons of ready-made and off plan property in Dubai, and how they differ from one another, can help you understand your needs, risk appetite, and financial readiness.
Below, we have listed the pros and cons of both, so you can have an overview of the two landscapes.
Ready Property – Advantages & Disadvantages
| ✅ Ready-Made Advantages | ❎ Ready-Made Disadvantages |
| 1. Established location | 1. Price is generally higher |
| 2. Buying a property you can physically see (know what you are getting into) | 2. Down payment is higher |
| 3. Price is negotiable | 3. Old design (May need renovation) |
| 4. Investors can move in or rent it out immediately | 4. Less payment flexibility |
| 5. Immediate rental income | 5. Pre-owned property |
| 6. Get the highest LTV for bank financing | 6. Pre-existing problems (Repair / maintenance) |
Off Plan Property – Advantages & Disadvantages
| ✅ Off Plan Advantages | ❎ Off Plan Disadvantages |
| 1. Price discount | 1. Risk of delays (high probability) |
| 2. First choice on unit | 2. Risk of bankruptcy |
| 3. Small down payments | 3. Waiting time |
| 4. Flexible payment terms | 4. Nothing tangible |
| 5. High return on investment (ROI) | 5. Market fluctuation |
| 6. Brand new and modern | 6. Oversupply |
Ready or Off Plan Property – Which one do I Buy?
Choosing between off-plan and ready properties in Dubai really depend on your financial situation.
If you’re patient and can take on some risk for potentially higher returns, off-plan properties might be your best bet.
On the other hand, if you want stability and immediate returns, ready properties could be a better choice.
Here are some crucial key points to also keep in mind:
1. Spot the Deals During Market Cycle
The real estate market is a cycle that never goes away.
Once an investor knows where they are in the real estate cycle, the classic old saying ‘buy low, sell high’ becomes much easier to identify.
During a down market, you will probably get better deals in the secondary market due to an increase in supply. With more properties up for grabs, sellers may be more open to negotiating prices and throwing in deals to close the sale.
When the market is booming, the off-plan developers may step up their game and have incentives to draw in investors that can be a more attractive investment. They may offer more discounts, flexible payment plans, or even guarantees on rental returns.
Before making a move, make sure to take a good look at what’s happening in the market and think about how it fits with your own financial situation.
2. Mortgage Offers
What is the current interest rate environment?
If they’re low, getting a mortgage may be more attractive than payment plans. If they are high, payment plans may give you more assurance and flexibility.
Remember, ready-made and off-plan properties have different types of payment schemes, so it’s important to compare and understand these payments, and know when they are due to ensure you have enough liquidity and funds for them.
3. Available Cash
Figure out how much cash you have on hand for the purchase.
In Dubai, a down payment on a property is typically 20% of the total value, and some off-plan developers can require you to put down up to 50% upfront.
These numbers can add up with extra associated fees that comes along with buying a property, so you will need to decide on how much you’re comfortable spending.
Knowing your financial situation will help you set a realistic budget and avoid overcommitting.
4. What are Current Similar Properties Selling For?
Do your homework on what similar properties are going for in the area.
Off plan property can be priced lower per square foot, offering potential for value growth. Still, make sure you’re not overpaying by comparing prices of other off-plans.
Same goes for ready-made properties. Look at recent sales to get a sense of what’s going on in the market. Knowing what properties are selling for helps you make smart decisions and negotiate effectively.
