Question: I’m considering buying a second property in Dubai. Is it better to go for a ready unit or an off-plan property as an investment? There are so many options, I could do with some advice. CP, Dubai
Answer: Both ready and off-plan properties can be excellent investments. The right choice depends on your risk tolerance, timeframe and cash flow requirements.
If your priority is immediate rental income, then a ready property is the better option. You can start earning from day one and the transaction process is straightforward. You also have full visibility of the condition, layout and location of the unit. This is often preferred by first-time or cautious investors.
On the other hand, off-plan properties tend to offer better entry prices and more flexible payment plans. Developers frequently launch units at favourable market values to attract early investors. If you’re looking for capital appreciation and are comfortable waiting three to four years for the handover, this route can be quite lucrative. However, keep in mind the risks of project delays and market fluctuations.
Regardless of which path you take, you should always research the developer’s track record. Even if the builder is not a UAE-based developer, check out what they have handed over in their home country.
Ensure the development is approved by the Real Estate Regulatory Agency, registered in Oqood and has an escrow account opened in the project’s name.
Lastly, evaluate the neighbourhood’s long-term potential, not just current returns. It is more beneficial to enter a project that is in a neighbourhood with great potential rather than an area that is already established. Look for things that will add value in the long term, such as transport links, Metro, road extensions and amenities.
Diversification across different asset types, some ready, some off-plan, can also be a great strategy, especially as Dubai’s property market continues to mature.
Q: I've been collecting references to support my position that a new landlord cannot use the old landlord’s eviction notice (which was given for the reason of selling) to rent the property to another tenant at a higher rate.
Can you point me in the direction of some cases that were won in favour of this position, or to any legal advisers who have experience with similar cases? NG, Dubai
A: Unfortunately, I do not have access to such documented cases. However, I would like to offer my opinion.
Previously, a new landlord could not use an old landlord’s eviction notice. But recently judges at the Rental Dispute Settlement Committee have changed their stance on this and now allow the eviction notice to be transferable.
However, a landlord is not allowed to evict a tenant to re-let the property to somebody else. The new landlord should offer the outgoing tenant the right to move back in, and only if the tenant refuses to do so can the former go on to let the property to someone else.
It’s important to note that the tenant should confirm in a notarised document that they do not wish to move back in. Once this document is available, the landlord is free to let it to someone else at the market rate.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@novviproperties.com
