Buying off-plan, before a building is completed, is common in markets such as Dubai and in branded residential projects. It can offer access to the best units, a degree of personalisation and staged payments. It also carries specific risks, and it follows a different logic from the off-market acquisition of an existing home.
What off-plan can offer
- Choice of the best units, including views, floors and layouts, before general release
- Possible customisation of finishes and layouts at an early stage
- Payment schedules linked to construction milestones
- Modern specifications in energy, technology and services
What to examine carefully
- The developer’s record: completed projects, quality, delivery times and financial strength
- Legal protection: escrow arrangements, regulatory oversight and contract terms, which vary from one country to another
- A realistic timetable, with a contingency for delay
- Quality control: review of plans and specifications by an independent architect or surveyor
- Resale conditions: restrictions, assignment fees and likely demand at completion
- Running costs: service charges, taxes and rental assumptions
Projections of return deserve caution. Forecasts published by developers or intermediaries are not guarantees, and the outcome depends on the market at the time of completion.
Off-plan and off-market
Off-plan suits buyers who value a specific brand, location or design that does not exist in the resale market. Buyers who prioritise immediate use, privacy and an established setting are usually better served by a completed home, often available privately. I help clients compare both routes. Contact Vincent.