Don’t be misled by ‘best price’ off-plan offers: Real estate expert

Business Wednesday 05/July/2017 14:41 PM
By: Times News Service
Don’t be misled by ‘best price’ off-plan offers: Real estate expert

Muscat: Buyers of Dubai residential property are still being misled by “best price” off-plan offers when they should be focusing on the key factors that attract end users, a UAE real estate expert says.
Firas Al Msaddi, CEO of fäm Properties, said on Wednesday that Dubai is experiencing a growing trend for purchase decisions in prime locations based on what end users see when they visit ready properties.
“Properties are often advertised as having the “best price”, but this can be very misleading,” says Al Msaddi. “If you take Downtown Dubai for example, we’ve seen off-plan two bedroom apartments priced as low as Dh1.6m to Dh1.8m, with others advertised for between Dh2.5m and Dh2.8m.
“The reality is that the lower priced properties can turn out to be more expensive when you look at the price per square foot, but inexperienced buyers don’t take this into account. And because they’re buying off plan they may not visualise how small the apartment is until it’s too late.”
Adds Msaddi: “It becomes a problem if they decide to resell or rent out the apartment to end users who want more living space, and find the price per square foot is high compared to other properties on the market.”
This, Al Msaddi says, is particularly the case in prime areas like Downtown Dubai where the vast majority of end users are GCC citizens, other Arabs and Indians who demand spacious two, three and four bedroom homes.
Located at the heart of Downtown Dubai, the 36-storey Mada Residences luxury residential tower is singled out by Al Msaddi as a prime example of desirable and in-demand Dubai residential property
“It’s the only new residential development being handed over in Downtown in 2018, has the only two bedroom apartments with maids rooms in the area and is within easy walking distance of Dubai Mall and the Dubai Water Canal,” he said.
“There’s a lesson here for both investors and end users who need to evaluate a property in the context of expected end user demand once the project is completed. This can be measured in terms of the property’s liveability offering – the amount of space and comfort – combined with the individuality and unique nature of the development and the overall market supply factor.”
Rather than focusing mainly on the price tag and payment plan, location and the developer, he says that buyers should make end user demand the main driver of their investment decision.
Featuring 193 larger than average 1, 2, 3 and 4 bedroom luxury apartments, the 36-storey Mada Residences development in Downtown Dubai is on course for completion by second quarter 2018. Structure works were completed recently two months ahead of schedule and, unusually, a fully furnished 23rd floor show apartment is now available for viewing.