Many realtors, who have been in the off-plan estate industry, will tell you that the demand for off-plan properties has always been really high. These properties are at the earliest construction stages; hence, they can be mold into anything the investor wants. This is the charm of these properties, and this is the reason why their demand has always been high. The buyers invest in these off-plan properties as they know they will be, in time, paid more than what they have invested in terms of capital as well as payment terms. Things have changed a bit in the past few years, and buyers are not having second thoughts about investing in off-plan properties.
Hazards of investing in Off-Plan Properties:
There are always risk with anything you, but when it’s a property, the risk is even higher. The concerns of buyers, investors, as well as homeowners aren’t baseless. They have these concerns owning to the past experiences.
The buy the off-plan property, and they have a picture in their mind of the completed property; this picture is painted by the contractor. When the property is all done and finished the end result isn’t what the investor or the buyer was expecting. And there is nothing they can do about it. This has become a massive concern in recent years, and this is the risk that investors and buyers aren’t willing to take.
When the receiving project doesn’t comply with what they have perceived while buying the off-planned property, it’s a huge loss. It’s a risk that almost all investors were willing to take in the past, but there have been too many of those lately, and the investors have become skeptical.
The only way these risks can be minimized if the buyer or the investors selects the right person to develop the project. The buyer and investors are now taking time and research in selecting the developer as the developed site is very important in terms of returns. The site, amenities, as well as the finished product massively, impacts the returns, rentals as well as the depreciation of the site.
“Sharing apartments isn’t something new, even the most prestigious areas of developed Dubai is facing “sharing apartment” phenomenon. If a developed site accepts the “sharing apartment” concept, then the value drops, as there are more residents now. Up-keep and maintenance demands also get higher. The decrease in rental yield affects the landlords adversely.
Why doesn’t the finished product comply with what the investor has perceived? Well, there are many reasons for that; one big reason is cost-cutting. To increase their profit margin, the developers cut costs; this means the quality drops instantly. Unfortunately, these problems are unpredictable, and one cant does anything about these.
These risks and quality control takes us to our point of discussion that is “branded residences”. If your primary concern is the quality of the site, then you should think about switching to branded residences that have been high in demand as well as pretty popular among the masses.
What are Branded Residences?
The year 1927 saw the launch of fist ever branded residence in New York. Ever since then the sector has grown by 400 branded residences. This is a whopping number that has taken over more than sixty countries. Yes, you read it right, and there are over 400 branded residences in over 60 countries. The concept was established as well as accepted globally. These sites are tailored to the taste of their clientele. These branded residences include the likes of Lamborghini, Bulgari, Armani and Versace.
The brand name ensures the buyer or the investor of this quality. The buyer knows that getting a home with such a development will have a higher value than others. It’s an idea that combines the mind and idea of a five-star developer and a brand name and presents the buyers with a perfect residential place that has both a branded name as well as quality comfort.
It doesn’t matter what you are looking at, if it’s a hotel, a development, a residential site, whether it’s tied with management or it’s remote. The developer or the contractor will follow the brand name and the quality it poses. This is the benefit of investing or buying in a branded residence. There will be no compromise on the quality of the place, owing to high quality; the place will always maintain a high-value return as well as low depreciation.