Overview
Property Description
Off-plan properties, i.e., those that are not yet completed, can be in the planning or under construction phase. As it is not common in real estate investment in Hungary to choose a property that will be ready in 1-5 years or is still only on the drawing board, we have prepared a case study that presents the advantages, disadvantages, buying specifics, and expected returns of off-plan property investment.
Luxury Real Estate Investment with Up to 20% Appreciation
Property Overview
Property type: Luxury apartment
Location: Volta Tower, Sheikh Zayed Road, Dubai
Size: 2 bedrooms, 130 m2
Planned Completion Date: May 31, 2028.
Purchase price: 3,032,000 AED ($825,618)
Location
Volta Tower will be situated directly on Sheikh Zayed Road, the main artery of Dubai. Sheikh Zayed Road symbolizes the path towards progress, and in the past five decades, some of Dubai’s largest and most beautiful architectural wonders have rightfully claimed their place alongside it and in history. Residing in Volta means being close to the entertainment and luxury offered by the city. The dazzling downtown Dubai is just a shout away, while lifestyle destinations like Dubai Marina and Palm Jumeirah are minutes away. The Dubai International Airport can be reached in 15-20 minutes.
The 60-story Volta Tower project is designed by Gensler, with completion expected in the first quarter of 2028. Volta is a perfect investment as residences in the heart of Dubai are always sought after by tenants. The offerings include 1-2 bedroom apartments from the 2nd to the 50th floor and 3-4 bedroom super luxury apartments from the 51st to the 60th floor. The apartments, besides their prime location, will offer breathtaking views of the Burj Khalifa, downtown Dubai, and the Arabian Gulf. Their living spaces range from 673 sqm to 2167 sqm, with 1-bedroom apartments starting from 1.5 million, 2-bedroom from 3 million, 3-bedroom from 4.86 million, and 4-bedroom from 5.81 million AED.
More on Off-Plan Property Purchase
Advantages
Payment Schedule: Off-plan properties do not require immediate, lump-sum payments but follow a fixed schedule. In the case of Volta, this involves an initial down payment of 20%, 16 installments of 3% each (payable quarterly), and the final installment of 20% upon handover.
Property Utilization: After completion, the property can be leased. For the smallest units, the annual rental income starts from 75,000 AED ($21,000 USD). The average rental yield for a 1-bedroom apartment in downtown Dubai is 6.5%.
Resale: The property can be resold after completion, with an expected profit margin of 15-20%.
Residency: Volta is a property of exceptional location and luxury, available for purchase as a residence. Golden Visa can be applied for settlement. Learn more about the visa application!
Disadvantages
Not Tangible: Off-plan buildings may only exist on paper, making it impossible to physically inspect them before purchase.
Long-Term Investment: Until the expected completion date of the property, the purchased unit cannot be utilized.
Visa: A residency visa cannot be applied for until the completion of the off-plan property.
- Principal and Interest
- Property Tax
- HOA fee
