A Landlord’s Guide to Off-Plan Projects in Dubai Marina

July 4, 2022

Landlords must know different things than tenants. While tenants will focus on local attractions, amenities, and apartment features, landlords will focus on payment plans and apartment prices for fiscal reasons. Landlords will need rent statistics. Rent is crucial because it will show how long it will take to make a return on investment. Fees and exclusive realtor bargains are other relevant information when purchasing a property.

Here is our best guide to the off plan projects in Dubai.

Apartment Prices

The first thing a landlord should know is how much the property will cost to purchase. Stella Maris has the most expensive properties. The seven 1-bedroom apartments in Stella Maris cost between 1,680,000 AED and 2,800,000 AED. There are four 2-bedroom apartments with prices ranging from 3,400,000 AED to 3,750,000 AED. The two 3-bedroom apartments cost between 5,300,000 AED and 5,950,000 AED. Finally, there is one 4-bedroom apartment that costs 9,8000,000 AED.

LIV Marina has the second-highest prices. There are two 1-bedroom apartments with costs ranging from 1,799,550 AED to 2,550,00 AED. Finally, VIDA Residences Dubai Marina has only one 1-bedroom apartment, which sells for 1,650,000 AED.

Payment Plans

The next thing landlords should know are the terms of repaying realtors their mortgage on the property. It is unlikely that landlords can pay all the money up front, hence why repayment plans exist. It is necessary to find out completion and handover dates.

In Stella Maris, the properties will be ready in July 2022, but in some cases, ownership will not transfer to the landlords until October 2022.The most popular payment plans available in Stella Maris are:

  • A 4-year, interest-free payment plan after the handover.
  • A 40% down payment, 60% payment plan due over four years
  • A certain percentage of the price is due until completion, and 60% post-handover is due over four years.

In LIV Marina, property ownership will transfer over in May 2025.Some payment plans available in LIV Marina include:

  • A 10% down payment and the potential of selling the units once 40% is paid
  • A 50% due on property handover payment plan

Unlike Stella Maris and LIV Marina, realtors of properties in VIDA Residences Dubai Marina do not provide handover or completion dates available. Realtors do not list payment plans, either.

Rent

After comparing payment plans and prices, it is time to know how much you can charge for rent. While certain apartment towers have rent ranges, it is hard to find off-plan projects in Dubai with properties for rent in the same building. Thus, landlords will have to know the local rent. Low rent is more appropriate for smaller dwellings, while the highest rent is for wealthy tenants. Stella Maris, VIDA Residences Dubai Marina, and LIV Marina are best to have rent set towards the middle of the rent ranges. Here is the rent table for Dubai Marina:

  • A 1-Bedroom apartment will rent for between 47,000 AED and 750,000 AED.
  • A 2-Bedroom apartment will rent for between 60,000 AED and 600,000 AED
  • A 3-Bedroom apartment will cost tenants between 89,000 AED and 490,000 AED.
  • A 4-Bedroom apartment has a rent of between 145,000 AED and 360,000 AED.

Fees

After looking at rent, payment plans, and apartment prices, landlords should determine if there are fees associated with purchasing the properties. LIV Marina and VIDA Residences Dubai Marina have no additional payments with the property purchase. Meanwhile, a premium fee with the down payment could be necessary for some properties in Stella Maris.

Miscellaneous

Finally, after comparing apartments on their prices, payment plans, rent, and fees, it is time to look at some miscellaneous facts. There will be one parking space per property in Stella Maris. These apartments are on the higher and lower floors, and some will be corner units. They are the largest off-plan apartments in Dubai Marina. Here is a table of apartment areas in Stella Maris:

Type of Apartment Size of Apartment
1-Bedroom Apartments (7) 748 – 1,094 square feet
2-Bedroom Apartments (4) 1,396 – 1,795 square feet
3-Bedroom Apartments (2) 2,348 – 2,514 square feet
4-Bedroom Apartment (1) 3,058 square feet

As a final assessment, you can calculate the time it will take to break even with your purchase in Stella Maris. The calculation divides the highest property price in Stella Maris by the lowest rent in Dubai Marina to get the upper limit and divides the lowest property price in Stella Maris by the highest rent in Dubai Marina to get the lower end. Remember that since landlords will probably charge neither the highest nor the lowest rent, the actual time it will take to break even will be somewhere in the middle. Here is how long it will take to recoup your initial investment:

  • It will take 3 to 60 years to break even on 1-bedroom off-plan apartments.
  • It will take 6 to 63 years to profit from a 2-bedroom off-plan apartment.
  • It will take 11 to 67 years to make money from your purchase of a 3-bedroom off-plan apartment.
  • It will take 28 to 68 years to make money on the only 4-bedroom apartment.

It will take the longest average time to profit from the 4-bedroom apartment in Stella Maris, while it will take the shortest average time to break even on your investment from the 1-bedroom apartments in Stella Maris.

Next, LIV Marina’s apartments are on high floors in their new tower. You can buy the property directly from the developer if you wish. The square footage of the two 1-bedroom apartments ranges from 817 square feet to 913 square feet. It will take between 3 to 55 years to make money on your investment in these 1-bedroom apartments.

Finally, the skyline of VIDA Residences Dubai Marina draws its design inspiration from nautical architecture and gives residents unique views of the skyline, sea, and the community. The only 1-bedroom off-plan apartment is 1,006 square feet in sizeThe only 1-bedroom off-plan apartment is 1,006 square feet in size. It will take 3 to 36 years to profit from your investment.

Conclusion

Apartment prices, payment plans, rent, fees, and other factors should be considered by landlords when purchasing off-plan apartments. The off-plan projects in Dubai Marina will draw tenants to the flats. A landlord should look at these factors to determine if the investment is a good choice.

 

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Thomas P
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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