By Dr. Pooyan Ghamari, Swiss Economist
Investing in off-plan properties, which are purchased before completion, is a strategy favored by many top investors. Here are five key reasons why this approach is so appealing:
1. Cost-Effective Entry Prices
Investors often find off-plan properties attractive due to their lower initial prices. Developers typically offer these properties at a discount during the pre-construction phase to secure early funding. This allows investors to enter the market at a reduced cost, setting the stage for potential financial gains as the property appreciates in value upon completion.
2. Potential for High Capital Appreciation
The value of off-plan properties usually increases as construction progresses and the development nears completion. Early investors benefit from this price appreciation, potentially seeing significant returns on their initial investment. This capital growth is a primary reason why seasoned investors are drawn to off-plan opportunities.
3. Flexible Payment Structures
Purchasing off-plan often comes with the advantage of staggered payment plans. Instead of a lump sum payment, investors can pay in installments that align with construction milestones. This flexibility helps investors manage their finances better and reduces the immediate financial burden.
4. Customization and Personalization
Investing in off-plan properties provides the opportunity to customize various aspects of the property. Investors can often choose layouts, finishes, and other details to match their preferences or market demands. This customization can enhance the property’s appeal and value once it’s ready for occupancy.
5. Premium Returns on New Builds
Newly completed properties generally command higher rental and sale prices due to their modern features and compliance with the latest building standards. Off-plan properties, being brand new upon completion, attract a premium, ensuring higher rental income and increased resale value. This premium is a significant draw for investors looking for steady returns.
Investing in off-plan properties offers multiple advantages, including lower entry prices, high capital growth potential, flexible payment options, opportunities for customization, and premium returns on new builds. These factors collectively make off-plan investments a strategic choice for top investors.
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