Dubai’s real estate market acts as a vast field of opportunities equally for home buyers and investors. However, one of the biggest decisions buyers face is whether to invest in an off-plan property (one that is still under construction) or a ready property (a completed home). Each option has its own financing structure, costs, risks, and long-term benefits. Understanding these differences can help you make a decision that benefits you in the long run.
As the most trusted mortgage brokers in Dubai, we at Amplus, help buyers steer through this choice by comparing off-plan mortgages and financing options for ready properties. Let’s explore the key differences.
1. Understanding the Basics
Off-Plan Property: What Does It Mean?
An off-plan property is a home that is still under construction or in the planning phase. Buyers purchase it directly from developers, often at a lower price than a completed property. Payments are made in instalments as construction progresses.
Ready Property: How Is It Different?
A ready property is a fully built home that is available for immediate occupancy. Buyers can move in or rent it out right after purchase, making it an attractive option for those seeking quick returns.
2. Mortgage Financing: Off-Plan vs. Ready Properties
Both off-plan and ready properties can be financed through banks, but the mortgage process varies.
Off-Plan Mortgage
- Offered by selected banks for properties from approved developers.
- Requires a minimum down payment of 50% for non-residents and 20-25% for UAE residents.
- The loan amount is disbursed in phases, linked to construction milestones.
- The full mortgage repayment starts once the property is completed.
Mortgage for Ready Property
- Available from most banks with more flexible terms.
- Requires a down payment of 20-25% for residents and 50% for non-residents.
- The loan is approved based on the buyer’s income, credit score, and property valuation.
- Repayments begin immediately after purchase.
3. Costs and Financial Considerations
| Factor | Off-Plan Property | Ready Property |
| Property Price | Usually lower, with developer discounts | Market price, often higher |
| Down Payment | Higher for non-residents | Standard down payment rates apply |
| Payment Structure | Staggered payments during construction | Full mortgage payments start immediately |
| Interest Rates | May be slightly higher | Competitive rates from most banks |
| Additional Costs | Registration, developer fees | Registration, valuation, agency fees |
While an off-plan mortgage allows buyers to invest with staggered payments, a ready property mortgage offers stability with immediate repayment structures.
4. Risks Involved
Off-Plan Property Risks
- Construction Delays – If the project is delayed, buyers may have to wait longer to move in or start earning rental income.
- Market Fluctuations – Property values can change between the purchase and completion phases.
- Limited Financing Options – Not all banks offer mortgages for off-plan projects, making loan approval more selective.
Ready Property Risks
- Higher Upfront Costs – The need for full mortgage payments from day one means a higher immediate financial commitment.
- Older Infrastructure – Unlike brand-new off-plan homes, ready properties may require maintenance and renovations.
- Limited Price Appreciation – While ready properties offer stability, off-plan investments may provide higher value appreciation by the time of completion.
5. Long-Term Benefits
Why Choose an Off-Plan Property?
- Lower purchase prices with flexible payment plans.
- Potential for higher return on investment as property values increase.
- Modern designs and new amenities from developers.
Why Choose a Ready Property?
- Immediate possession and rental income potential.
- Established communities and infrastructure.
- Fixed pricing with no waiting period.
Final Verdict: Which Mortgage Option is Best for You?
- If you’re looking for lower entry costs and potential high returns, an off-plan mortgage might be the best choice.
- If you want stability, immediate returns, and long-term security, a mortgage for a ready property is the safer bet.
At Amplus Mortgage Brokers, we understand that every buyer has unique financial goals. Our mortgage office helps clients navigate Dubai’s real estate market with expert advice and tailored financing solutions. Whether you’re considering an off-plan mortgage or a loan for a ready home, we’re here to guide you through every step.
Looking for the best mortgage solution in Dubai?
Contact us today and let us help you find the right home financing option.
