United Arab Emirates (UAE) is one of the most preferred locations when considering real estate investments. The economy has a very high growth rate, and the political stability together with the favorable physical infrastructure are other factors that would make one consider investing in real estate, especially in UAE, and Ajman has been on the rise for new investments. With the help of GJ Properties, you will know exactly where your investment is going. GJ Properties has each plan laid out on its website. Their transparency with their plan will guarantee that all expectations are met. However, investing in real estate might take a troll who does not know about the estate. The following text is a detailed information regarding everything one should know about real estate properties. No need to search for how to invest? or off plan property meaning? Or what is secondary market real estate?

When looking for properties to invest in there are two main types of properties available in the UAE: primary and secondary. Therefore, the next question that arises is what are secondary & off plan properties? as well as which of these products should you purchase?

Primary properties:

Primary properties are properties that have been developed which means that they are newly developed properties. There are two ways of purchasing a primary property; either directly from the developer’s sales team or from a broker.

Purchasing a primary property means that there was no one before you and you are directly going to be a buyer from the developer. Primary properties can be categorized into two that is, ‘Off-plan’ or ‘Ready’.

It is important to realize that not all “Off-Plan” properties are “Primary” however, we will be dealing mostly with this type in our trading. That is because some people invest in off-plan properties from a developer and then later on sell the unit before it is built. Meaning that it is “Secondary” because you do not purchase it directly from the developer, but still it is off-plan.

 What is off-plan property? 

An off plan property meaning is a property that has not yet been built. This is usually bought in an unfinished state and is therefore often referred to as a ‘work in progress’. Off-plan properties are usually priced below the market value that may be estimated for such a property. This is because the intended developer is seeking to source funds to finance the intended development. Investing in off-plan real estate is very useful as it provides quite several advantages: affordable prices and a chance to get an excellent piece of property for the future in the best area when the entire infrastructure is still under construction.

Investors who purchase off-plan can be assured that they can gain a lot of value from it once it gets developed and this makes off-plan property perhaps of more demand in UAE real estate sales.

Investors who purchase off-plan can be assured that they can gain a lot of value from it once it gets developed and this makes off-plan property perhaps of more demand. On the other hand, a ‘Ready’ property, is a property that has been constructed entirely.

If the difference between Ready and off plan property meaning is not clear the summary of Ready and off plan property meaning in the real estate market is:

Off-plan Property:

The building remains an empty shell, the developer promises that the building will be ready by some time.

Ready Property:

The construction for the property is done and anyone who intends to live or do business in the specific property can do so instantly.

What are the benefits of buying an off-plan property? 

Lower price:

Off-plan properties are normally marketed at lower than their appraised value at the time of sale.

Potential for capital appreciation:

Off-plan has a higher prospect of earning very good revenue in the event the general property marketplace index gives improved returns.

Ability to customize:

In certain situations, there exists an opportunity to make certain changes to your off-plan property units.

Tax benefits:

There are often tax advantages that are associated with the purchase of property that is off-plan.

Latest design:

Buying a new primary property ensures that one acquires the most modern designs and features in the house.

Developer Promotions & Flexible Payment Plans:

There are some important costs, for example, 4% for the Land Department fee that some developers are willing to bear some of them make it even financially more appealing. Also, the majority of them include flexible payment structures.

What are the drawbacks of buying an off-plan property?

Construction delays:

One of the disadvantages that may occur in the case of purchasing an off-plan property is a construction delay.

Lack of rental income:

It means, that until you get possession of the off-plan property, you cannot earn rent from those properties.

Possibility of Project Abandonment:

There is a small risk particularly when you are buying an off-plan property in case the developer feels a pinch in the region of finances. However, the authorities have put several measures that would guard anyone, who decides to purchase off-plan properties in UAE.

Delivery Might Not Meet Expectations:

If buying an off-plan primary unit, you might not be able to get an idea of what it is going to be like until the construction is over.

This is why it is necessary to buy houses only from reputable developers who have outstanding records of timely delivery as well as quality construction, and GJ Properties is one of the best that you can find in the market. They are transparent will all of their details, which ensures that you know exactly what you are investing in.

What is Secondary market real estate?

In secondary market real estate the property is already developed. A secondary property exists and the owner who is not the developer is planning to sell it to make a profit out of it. Such kinds of homes are usually situated in the existing community areas. Nonetheless, at times an owner of an off-plan property may decide to dispose of the house; therefore, it is possible to find some of the secondary properties that are off-plan in young and immature communities.

What are the benefits of buying from a Secondary market real estate? 

Established Unit and Location:

Secondary properties can be ‘Ready’ properties and these properties are situated in developed neighborhoods. Therefore, you will be acquainted with the realities of living there in terms of the effort that will be put into maintaining it, the available services and facilities nearby, and even the other occupants.

Wider Choice of Options:

It is crucial to state that the primary market is one of the most volatile markets on the current global scene. This suggests that first-tier properties go off the market within a very short period; thus, they are much more difficult to find as compared to second-tier properties.

The advantage of turning to the second market is that sometimes you are given more choices, and you have some time to think.

Negotiable & Lower Price:

While you may not get an opportunity to avail of any developer promos, you’ll find that secondary properties can often be cheaper than those that are new. Also, you are likely to get a competent real estate agent who will assist you in negotiating the price down so that you will get the most value for your money.

What are the drawbacks of buying from a Secondary market real estate?

Renovation Costs:

The disadvantage of buying a property that was used before or was a rented one is that you have to do some remodeling. The amount of refurbishing that will be necessary is going to depend on how old the particular unit is and whether prior users took good care of it.

Older design:

The time it takes for the house to be built varies and therefore, depending on the period that the property has been in the market, one might not obtain stylish and what is considered to be current architectural designs.

Less flexible payment plans

In the secondary market, there are no flexible payment options unlike in the primary market where developers provide them.

Read More: Off-Plan Investment Opportunities in Al-Ameera Village Ajman

Key takeaway:

Primary and secondary properties both have their merits and of course demerits as well. It all depends on your needs, situation, and requirements. It is important to thoroughly research each real estate one might plan to invest in. In-depth information on any property helps in knowing where the investment is going. GJ Properties are transparent in their claims. They have every plan from their flooring to their payment plan laid out on their website. Through GJ Properties one would know that their investment is going in the right place.