Off-Plan Townhouses For Sale In Dubai

Bram Vermolen

off plan townhouse projects dubai
Last Updated on July 26, 2023 by Bram Vermolen

An off-plan townhouse is a type of property that is sold by a developer before it is fully constructed. Investing in an off-plan property in Dubai can be a smart investment decision, as it offers many benefits such as lower prices, flexible payment plans, and high returns.

However, it also involves some risks and challenges, such as delays, quality issues, and market fluctuations. In this guide, we will explore the pros and cons of buying off-plan townhouses in Dubai, the difference between off-plan and ready townhouses, the best areas and projects for off-plan townhouses, the average prices and payment plans, and the steps to buy an off-plan townhouse in Dubai.

What Is An Off-Plan Townhouse?

A townhouse is a type of residential property that shares one or more walls with other similar units. It usually has two or more floors and a small garden or backyard. A townhouse can be part of a gated community or a standalone unit.

An off-plan townhouse is a townhouse that is sold by a developer before it is fully constructed. The buyer pays a deposit to reserve the unit and agrees to pay the remaining amount in instalments according to a payment plan. The buyer receives the title deed and the keys to the property after the completion and handover of the project.

What Are The Advantages Of Buying Off-Plan Townhouses?

Buying an off-plan townhouse in Dubai can offer several advantages, such as:

  • Lower price: Off-plan townhouses are usually cheaper than ready ones, as developers offer discounts and incentives to attract buyers and secure funding for their projects. The buyer can also benefit from the appreciation of the property value over time, as the demand and supply factors change in the market.
  • Flexible payment plan: Off-plan townhouses come with flexible payment plans that allow the buyer to pay in instalments over a period of time, usually until the handover or even after. This can ease the financial burden on the buyer and help them manage their cash flow better.
  • Customization options: Off-plan townhouses give the buyer the opportunity to choose their preferred unit type, size, layout, design, and finishing. Some developers also allow the buyer to make changes or modifications to their unit according to their taste and needs.
  • New property: Off-plan townhouses are brand new properties that come with modern features, facilities, and amenities. They also have lower maintenance costs and longer warranties than older properties.
  • Investment opportunity: Off-plan townhouses can be a lucrative investment opportunity, as they can generate high rental income and capital appreciation in the long term. The buyer can also sell their off-plan contract before the handover and make a profit from the difference between the original price and the current market price.

What Are The Risks Of Buying Off Plan Townhouses?

Buying an off-plan townhouse in Dubai also involves some risks and challenges, such as:

  • Delayed completion: Off-plan townhouses are subject to construction delays due to various factors such as weather conditions, technical issues, legal disputes, market conditions, or developer insolvency. This can affect the buyer’s plans and expectations and cause them inconvenience and frustration.
  • Quality issues: Off-plan townhouses may not match the quality standards or specifications promised by the developer or shown in the brochures or mock-ups. The buyer may find defects or faults in their unit after the handover that may require repairs or replacements.
  • Market fluctuations: Off-plan townhouses are affected by market fluctuations that can impact their value and demand. The buyer may face a situation where their property value drops below their purchase price or where they cannot find tenants or buyers for their property.
  • Legal issues: Off-plan townhouses are governed by complex legal contracts that bind the buyer and the developer to certain terms and conditions. The buyer should read and understand these contracts carefully before signing them and seek professional advice if needed. The buyer should also check the credibility and reputation of the developer and ensure that they have all the necessary approvals and licenses from the authorities.

What Is The Difference Between Off-Plan And Ready Townhouses?

Off-plan and ready townhouses are two different types of properties that have their own advantages and disadvantages. The main difference between them is the stage of construction and the time of delivery.

Off-plan townhouses are sold by developers before they are fully constructed, while ready townhouses are completed and ready to move in. Here are some of the other differences between off-plan and ready townhouses:

  • Price: Off-plan townhouses are usually cheaper than ready ones, as developers offer discounts and incentives to attract buyers and secure funding for their projects. Ready townhouses have higher prices, as they reflect the current market value and demand.
  • Payment plan: Off-plan townhouses come with flexible payment plans that allow the buyer to pay in instalments over a period of time, usually until the handover or even after. Ready townhouses require the buyer to pay the full amount upfront or obtain a mortgage from a bank or a lender.
  • Customization options: Off-plan townhouses give the buyer the opportunity to choose their preferred unit type, size, layout, design, and finishing. Some developers also allow the buyer to make changes or modifications to their unit according to their taste and needs. Ready townhouses have limited or no customization options, as they are already built and finished according to the developer’s standards.
  • Risk: Off-plan townhouses involve more risk than ready ones, as they are subject to construction delays, quality issues, market fluctuations, and legal issues. The buyer should do their due diligence and research before buying an off-plan townhouse and check the credibility and reputation of the developer and the project. Ready townhouses have less risk, as they are already completed and handed over to the buyer.
  • Return: Off-plan townhouses can offer higher returns than ready ones, as they can appreciate in value over time and generate high rental income and capital appreciation in the long term. The buyer can also sell their off-plan contract before the handover and make a profit from the difference between the original price and the current market price. Ready townhouses have lower returns, as they have already reached their market value and have less room for appreciation.

What Are The Best Areas For Buying An Off Plan Townhouse?

Dubai is a city that offers a variety of options for buying an off plan townhouse, depending on the buyer’s preferences, budget, and lifestyle. Some of the best areas for buying an off plan townhouse in Dubai are:

1. DAMAC Lagoons

This is a master-planned community that features a stunning lagoon, lush greenery, and a range of amenities such as schools, hospitals, retail outlets, and leisure facilities. 

The community offers various types of off plan townhouses with different styles and sizes, such as Ibiza Townhouses, Marbella Townhouses, Morocco Townhouses, Nice Townhouses, and more. The prices start from AED 1.8 million for a 3-bedroom townhouse.

2. Mudon

This is a family-friendly community that offers a healthy and active lifestyle with parks, jogging tracks, cycling paths, sports courts, and fitness centers. The community also has schools, nurseries, mosques, supermarkets, and restaurants within its premises. The community offers Arabella Townhouses, which are spacious and contemporary units with private gardens. The prices start from AED 1.4 million for a 3-bedroom townhouse.

3. Tilal Al Ghaf

This is a mixed-use community that blends nature and urban living with a crystal lagoon, sandy beaches, green spaces, and recreational facilities. The community also has schools, clinics, retail outlets, and dining options within its vicinity.

The community offers Aura Gardens Townhouses, which are elegant and modern units with smart home features. The prices start from AED 1.6 million for a 3-bedroom townhouse.

4. Dubai Land

This is a vast area that encompasses various sub-communities that offer different types of properties for different budgets and lifestyles. Some of the sub-communities that offer off plan townhouses are Villanova, Serena, The Valley, Arabian Ranches 3, Reem Community, Damac Hills 2 (Akoya by Damac), Dubailand Residence Complex (DRC), Falcon City of Wonders (FCW), Living Legends (LL), Majan (MJN), Remraam (REM), Skycourts Towers (SKT), The Villa (TVL), Wadi Al Safa 2 (WAS2), Wadi Al Safa 5 (WAS5), etc. The prices vary depending on the sub-community, but generally range from AED 1 million to AED 4 million for a 3 or 4-bedroom townhouse.

5. Jumeirah Village Circle (JVC)

This is a popular community that offers a variety of properties for different tastes and needs. The community has a circular layout that is divided into 12 districts, each with its own amenities such as parks, schools, mosques, supermarkets, and clinics.

The community also has easy access to major roads and landmarks in Dubai. The community offers Westar Azure Townhouses, which are stylish and cozy units with private pools and gardens. The prices start from AED 1.9 million for a 3-bedroom townhouse.

What Are The New Off-Plan Townhouse Projects In Dubai?

Dubai is a city that constantly innovates and launches new off-plan townhouse projects to cater to the diverse needs and preferences of its residents and investors. Some of the new off-plan townhouse projects in Dubai are:

  • Burj Binghatti Jacob & Co Residences: This is a stunning 104-storey “hypertower” that is set to become the world’s tallest residential building. It will offer 2 and 3-bedroom apartments, 5 and 7-bed penthouses and 4 and 6-bed mansions with private pools. The project is expected to be completed in Q2 2026.
  • Bugatti Residences by Binghatti: This is a French Riviera-inspired residence that will showcase distinctive architecture that combines Bugatti’s artistic flair with Binghatti’s innovative design. It will span two towers and offer 182 units, including 2, 3 and 4-bed options and 11 penthouses. The project is expected to be completed in Q4 2025.
  • Como Residences: This is a luxury waterfront community that will feature contemporary design and premium amenities. It will offer 1, 2 and 3-bedroom apartments and 4-bed townhouses with private pools and gardens. The project is expected to be completed in Q4 2024.

What Does An Off-Plan Townhouse In Dubai Cost?

The cost of an off-plan townhouse in Dubai depends on various factors such as the location, size, design, quality, and developer of the project. However, generally speaking, off-plan townhouses in Dubai are more affordable than ready ones, as developers offer discounts and incentives to attract buyers and secure funding for their projects. Here are some of the questions and answers related to the cost of an off-plan townhouse in Dubai:

Is An Off Plan Townhouse In Dubai Expensive?

The answer to this question depends on the buyer’s budget and expectations. Compared to other global cities, Dubai offers relatively low prices for off-plan townhouses, as the city has a large supply of land and a competitive real estate market.

According to a report by Knight Frank, the average price per square foot for prime residential properties in Dubai was $600 in Q1 2021, which is much lower than other cities such as Hong Kong ($4,705), London ($3,022), New York ($2,378), or Paris ($2,077). However, compared to other types of properties in Dubai, such as apartments or villas, off-plan townhouses can be more expensive, as they offer more space, privacy, and amenities.

What Is The Most Expensive Off-Plan Townhouse in Dubai?

The most expensive off-plan townhouse in Dubai is probably the Bugatti Residences by Binghatti, which is a French Riviera-inspired residence that will showcase distinctive architecture that combines Bugatti’s artistic flair with Binghatti’s innovative design.

It will span two towers and offer 182 units, including 2, 3 and 4-bed options and 11 penthouses. The prices for the off-plan townhouses range from AED 5.5 million to AED 15 million, depending on the size and view of the unit. The project is expected to be completed in Q4 2025.

What Is The Average Price Of Off Plan Townhouses In Dubai?

The average price of off plan townhouses in Dubai varies depending on the area and project of the property. However, according to a report by Bayut, the average price for a 3-bedroom off-plan townhouse in Dubai was AED 1.8 million in Q1 2021, while the average price for a 4-bedroom off-plan townhouse was AED 2.6 million.

The report also listed some of the most popular areas for buying off-plan townhouses in Dubai, such as DAMAC Lagoons (AED 1.8 million), Mudon (AED 1.4 million), Tilal Al Ghaf (AED 1.6 million), Dubai Land (AED 1.5 million), and JVC (AED 1.9 million).

How Can I Buy An Off-Plan Townhouse In Dubai?

Buying an off-plan townhouse in Dubai is a process that involves several steps and procedures. Here are some of the main steps that a buyer should follow to buy an off-plan townhouse in Dubai:

  1. Research: The first step is to do a thorough research on the market, the developer, and the project of the off-plan townhouse. The buyer should compare different options and evaluate their features, prices, locations, and payment plans. The buyer should also check the credibility and reputation of the developer and ensure that they have all the necessary approvals and licenses from the authorities. The buyer can use online platforms such as Bayut, Property Finder, or Bing to search for off-plan townhouses in Dubai.
  2. Reservation: The second step is to reserve the desired unit by paying a deposit to the developer. The deposit is usually 10% to 20% of the total price of the unit. The buyer should also sign a reservation form that contains the basic details of the unit, such as the type, size, layout, design, and price. The buyer should also receive a receipt and a confirmation letter from the developer.
  3. Contract: The third step is to sign a sale and purchase agreement (SPA) with the developer. The SPA is a legal contract that binds the buyer and the developer to certain terms and conditions regarding the sale and purchase of the off-plan townhouse. The SPA should include all the relevant information about the unit, such as the specifications, features, facilities, amenities, completion date, handover date, payment plan, penalties, warranties, etc. The buyer should read and understand the SPA carefully before signing it and seek professional advice if needed.
  4. Payment: The fourth step is to pay the remaining amount of the price of the unit according to the payment plan agreed upon in the SPA. The payment plan can vary depending on the developer and the project, but usually consists of instalments that are linked to certain milestones or dates. The buyer should keep track of their payments and receipts and ensure that they pay on time to avoid any penalties or delays.
  5. Handover: The fifth step is to receive the title deed and the keys to the property after the completion and handover of the project. The buyer should inspect their unit for any defects or faults and report them to the developer for rectification. The buyer should also register their property with the Dubai Land Department (DLD) and pay any fees or charges required by the authorities.

Are There Off Plan Townhouses For Sale In Dubai With Payment Plan?

Yes, there are many off plan townhouses for sale in Dubai with payment plan. A payment plan is a scheme that allows the buyer to pay the price of the property in instalments over a period of time, usually until the handover or even after.

A payment plan can make buying an off plan townhouse more affordable and convenient for the buyer, as it can ease the financial burden and help them manage their cash flow better. However, a payment plan also comes with certain terms and conditions that the buyer should be aware of and comply with, such as the interest rate, the penalty for late payment, the cancellation policy, etc.

Are There Luxury Off-Plan Townhouses For Sale In Dubai With Payment Plan?

Yes, there are luxury off-plan townhouses for sale in Dubai with payment plan. Luxury off-plan townhouses are those that offer high-end features, facilities, and amenities, such as private pools, gardens, gyms, spas, concierge services, etc. Luxury off-plan townhouses are usually more expensive than regular ones, but they also offer higher returns and prestige for the buyer. Some of the luxury off-plan townhouse projects in Dubai that offer payment plan are:

  • Burj Binghatti Jacob & Co Residences: This is a stunning 104-storey “hypertower” that is set to become the world’s tallest residential building. It will offer 2 and 3-bedroom apartments, 5 and 7-bed penthouses and 4 and 6-bed mansions with private pools. The project offers a payment plan that requires the buyer to pay 10% on booking, 10% on signing SPA, 10% on completion of structure, 10% on completion of MEP works, 10% on completion of façade works, 10% on completion of interior works, and 40% on handover.
  • Bugatti Residences by Binghatti: This is a French Riviera-inspired residence that will showcase distinctive architecture that combines Bugatti’s artistic flair with Binghatti’s innovative design. It will span two towers and offer 182 units, including 2, 3 and 4-bed options and 11 penthouses. The project offers a payment plan that requires the buyer to pay 10% on booking, 10% on signing SPA, 5% every three months until handover, and 40% on handover.
  • Como Residences: This is a luxury waterfront community that will feature contemporary design and premium amenities. It will offer 1, 2 and 3-bedroom apartments and 4-bed townhouses with private pools and gardens. The project offers a payment plan that requires the buyer to pay 5% on booking, 5% after one month, 5% after two months, 5% after three months, and then 1.25% every month until handover.

Is There A Cheap Off-Plan Townhouse For Sale In Dubai With Payment Plan?

Yes, there is a cheap off-plan townhouse for sale in Dubai with payment plan. Cheap off-plan townhouses are those that offer affordable prices and good value for money for the buyer.

They may not have all the features and amenities of luxury ones, but they still provide decent living standards and comfort for the buyer. Some of the cheap off-plan townhouse projects in Dubai that offer payment plan are:

  • Arabella Townhouses in Mudon: This is a family-friendly community that offers a healthy and active lifestyle with parks, jogging tracks, cycling paths, sports courts, and fitness centers. The community also has schools, nurseries, mosques, supermarkets, and restaurants within its premises. The community offers Arabella Townhouses, which are spacious and contemporary units with private gardens. The prices start from AED 1.4 million for a 3-bedroom townhouse. The project offers a payment plan that requires the buyer to pay 10% on booking, 40% during construction (5% every six months), and 50% on handover.
  • Amaranta Villanova at Dubai Land: This is a Mediterranean-inspired community that offers a vibrant and lively atmosphere with green spaces, walkways, plazas, pools, playgrounds, and sports facilities. The community also has schools, clinics, mosques, and shops within its vicinity. The community offers Amaranta Townhouses, which are cozy and elegant units with balconies and terraces. The prices start from AED 1.3 million for a 3-bedroom townhouse. The project offers a payment plan that requires the buyer to pay 10% on booking, 40% during construction (5% every four months), and 50% on handover.
  • Westar Azure Townhouses in JVC: This is a popular community that offers a variety of properties for different tastes and needs. The community has a circular layout that is divided into 12 districts, each with its own amenities such as parks, schools, mosques, supermarkets, and clinics. The community also has easy access to major roads and landmarks in Dubai. The community offers Westar Azure Townhouses, which are stylish and cozy units with private pools and gardens. The prices start from AED 1.9 million for a 3-bedroom townhouse. The project offers a payment plan that requires the buyer to pay 10% on booking, 15% after six months, 15% after one year, 10% after 18 months, and 50% on handover. 

Dubai has many reputable and reliable developers that sell off-plan townhouses in Dubai. Some of the most popular developers that sell off-plan townhouses in Dubai are:

Binghatti Developers

This is one of the leading real estate development companies in the UAE that has a portfolio of over 40 projects across Dubai. The company is known for its innovative design, quality construction, and customer satisfaction. Some of the off-plan townhouse projects by Binghatti Developers are Burj Binghatti Jacob & Co Residences, Bugatti Residences by Binghatti, Binghatti Gardens, Binghatti Stars.

DAMAC Properties

This is one of the largest and most established real estate development companies in the Middle East that has delivered over 33,000 homes across the region. The company is known for its luxury and lifestyle properties that feature world-class brands and partners such as Versace, Fendi, Paramount Hotels & Resorts, Trump International Golf Club Dubai, etc. Some of the off-plan townhouse projects by DAMAC Properties are DAMAC Lagoons , DAMAC Hills, AKOYA Oxygen.

Majid Al Futtaim

This is one of the leading integrated lifestyle providers in the Middle East, Africa and Asia that has a portfolio of shopping malls, hotels, communities, leisure and entertainment facilities across the region. The company is known for its sustainability and innovation practices that create great moments for everyone everyday. Some of the off-plan townhouse projects by Majid Al Futtaim are Tilal Al Ghaf, Al Zahia, Al Mouj Muscat.

Frequently Asked Questions

Is It Safe To Buy Off-Plan Townhouses In Dubai?

Buying off-plan townhouses in Dubai can be safe if the buyer does their due diligence and research before making a decision. The buyer should check the credibility and reputation of the developer and the project and ensure that they have all the necessary approvals and licenses from the authorities.

The buyer should also read and understand the sale and purchase agreement (SPA) carefully before signing it and seek professional advice if needed. The buyer should also be aware of the risks and challenges involved in buying off-plan townhouses in Dubai, such as delays, quality issues, market fluctuations, and legal issues.

What Is The Average ROI A Off-Plan Townhouse for Sale in Dubai?

The average ROI for off-plan townhouses for sale in Dubai depends on various factors such as the location, size, design, quality, demand, and supply of the property.

However, generally speaking, off-plan townhouses for sale in Dubai can offer higher ROI than ready ones, as they can appreciate in value over time and generate high rental income and capital appreciation in the long term. According to a report by Bayut, the average ROI for off-plan townhouses for sale in Dubai was 6.7% in Q1 2021.

Is It Good To Buy An Off-Plan Townhouse In Dubai?

Buying an off-plan townhouse in Dubai can be a good decision for investors and homebuyers who want to enjoy the benefits of living in a spacious and comfortable property with a range of amenities.

Buying an off-plan townhouse in Dubai can also offer lower prices, flexible payment plans, customization options, new property, and investment opportunity for the buyer.

However, buying an off-plan townhouse in Dubai also involves some risks and challenges, such as delays, quality issues, market fluctuations, and legal issues. Therefore, the buyer should weigh the pros and cons of buying an off-plan townhouse in Dubai and make an informed choice based on their needs and preferences.
 

Why Are Dubai Townhouses So Cheap Sometimes?

Dubai townhouses are sometimes cheap because of various reasons such as the supply and demand factors, the location and quality of the property, the developer and project reputation, the market conditions and trends, etc. Dubai has a large supply of land and a competitive real estate market that offer a variety of options for different budgets and lifestyles.

Dubai also has various incentives and initiatives that attract investors and buyers to the city, such as the long-term visa schemes, the Expo 2020, the Golden Card programme, etc. Dubai townhouses are sometimes cheap because they offer good value for money and great potential for growth and returns for the buyer.

Bram Vermolen
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