Investment Property

Off-plan investment property is one of the fastest growing industry trends today. According to a survey conducted by one of the leading global investment property advisory firms, DTZ Residential, 60% of new residential property investments made in England and Wales were off-plan property investments.

What is an ‘off-plan’ investment property?

An off-plan investment property is one where the investor buys a property purely on the strength of the building plans. Often not a brick has been laid at the time the investment property is purchased. The big advantage is that you get a hefty discount of up to 20%, and you can pay only 5 to 10% of the price at this stage. Moreover, it generally will take 8 to 12 months to complete building during which time your investment property is bound to appreciate in value.

Overseas off-plan investment property options

With the stock markets in turmoil and the sub-prime crisis creating uncertainty, investment property overseas has become an attractive option. Online tools that facilitate off-plan purchases have spurred off shore property investment. For instances the United Arab Emirates with its twin metropolises of Dubai and Abu Dhabi are a favourite of investment property experts and off-plan investment property options are abundant. In the capital city Abu Dhabi, a recent study by its chamber of commerce indicated a shortage of 20,000 units in 2008 with a larger shortfall in 2009. Dubai to has consistently seen demand outstrip supply.

All of this is good news for the investment property market in the region. The most lucrative strategy for an investment property play appears to be the off-plan purchase. Particularly Abu Dhabi, which is the less mature of the two markets, reports many investment properties that have been bought off-plan and then sold quickly, reaping investors a 100% return, sometimes in a matter of weeks.