Kuwait Real Estate News
GCC investors interested in off-plan property purchase
Nearly nine out of ten investors who intend to purchase a property in the GCC admit that they would buy off-plan, reveals the findings of Property Survey 2008 by ArabianBusiness.com.
According to the data results of annual survey, 75.49% of potential real estate buyers wish to purchase off-plan directly from the developer, while 10.89% plan to buy off-plan on the secondary market.
Only 13.62% of potential buyers agree that they would buy property that has been already built.
By purchasing off-plan, the buyers will have a higher potential return on their investments, as they will not have to pay the whole purchase price up-front, with off-plan properties costing lesser than built properties.
According to three-quarters of respondents to the survey, investment is the main reason that people choose to purchase a property in the GCC.
Purchasing off-plan, particularly in the secondary market, could keep the buyers at a vulnerable stage, with associated risks such as project delays, market downturn, or surging costs, which could compel developers to cancel projects completely.
The results of survey come amidst news that soaring construction costs are compelling the Dubai realty developers, to buy back properties from investors, as projects are no longer financially feasible for completion.
According to the survey, the potential investors in UAE are most likely to buy off-plan with more than 87% of respondents agreeing that they would buy either straight from the developer on the secondary market. Only 12.08% of potential buyers in UAE agreed that they would invest in a built property.
The Survey also revealed that real estate investors in Kuwait and Egypt are most likely to go in for completed projects with 37.5% and 40% of buyers respectively agreeing that they would not buy off-plan.
Although the survey showed that investors from Kuwait and Saudi Arabia were more likely to go for completed projects, 65.52% and 58.3% of respondents of both Gulf countries respectively, still indicated an intention to buy off-plan.
Source Arabianbusiness.com
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