Expert Advice: Rick Bhojwani Of Raine & Horne Downtown

This Thursday, we’re bringing you advice on off-plan properties in Dubai, from one of the city’s best developments specialists and this month’s expert, Rick Bhojwani of Raine & Horne Downtown. Watch the video below to find out what exciting new projects are coming up in Dubai, like the Arabella townhouses in Mudon, launches in the ever-popular Nshama Town Square as well as some of the many properties in Downtown Dubai, such as Burj Vista and Fountain Views. Rick also talks about the two projects he’s most excited about, Villanova in Dubailand and Emaar’s Beach Vista.

upcoming off-plan developments in Dubai

rick’s advice when purchasing off-plan property in Dubai*

What are three things to keep in mind if you want to buy off-plan property?

Three of the most crucial factors are; buying purpose, location and the ability to sell the property in a timely manner.

• The parameters for making your decision drastically change if you are looking at a property for investment purposes, rather than to actually live in. Maybe you want to buy a smaller unit that is easier to rent, hence it can generate a good yield, as to a slightly bigger unit since you would like to live in a comfortable home (especially since you are purchasing it!)
• Location is key to determine the longevity of your investment/property. Does it have easy access to the major highways of Dubai? How close are the nearest schools and hospitals? How far is the community centre for your basic daily needs (pharmacy, supermarket, optician etc)? Whether you are living in a home by yourself or renting it out, these factors are key as you and/or your tenant will be thinking of these same factors. Everyone wants convenience, so it is important that you buy in a location that checks all these boxes.
• Ability to resell – this is something that is very often overlooked by buyers and property consultants alike. I can get you a fantastic, spacious 5-bedroom villa in the middle of nowhere for less than AED 1 Million. But you have to drive 20 KM to the nearest supermarket. On paper, it is of great value, but if no one is willing to buy it from you, then it’s clearly not a good deal. Too often, buyers make the mistake of buying into sub-standard developments or buildings because of an attractive payment plan or a very good price per sq. ft deal. However, be sure to ask yourself – will I be able to sell this back in the market at a decent value in 3-5 years?

What are the benefits of purchasing off-plan rather than ready properties?

As the city continues to expand, buying off-plan gives you a chance to get in early into a development and reap the benefits over the long term. A lot of the established areas may already be saturated from a price standpoint, so there may not be as much room for growth. Besides, a lot of the established gated communities today were complete some time ago and this can be seen in their structure.

Townhouses and villas in Arabian Ranches and Emirates Living that are not well maintained are dilapidated and hence become more expensive to upkeep. There have been huge technological advances that have been made in the field of construction and this is a very important factor when deciding between an off-plan property and a ready property. These communities were planned and built before 2010 – so the construction quality is very different to that of today.

For example, it is the year 2021 and I have decided to buy a 3 bedroom townhouse/villa for me and my family. Where do I go? If I am able to come down to choosing between two communities based on locations and several other factors, would I choose Dubai Hills or Emirates Living? Neither are far from Sheikh Zayed Road. Both communities are a quick drive to my office. Both communities have plenty of greenery, community pools and designated play areas – ideal for a young family. It just comes down to which one is the newer build (because that has a better longevity) and is going to be less expensive to maintain. So if you are looking from a resale point of view, off-plan beats ready properties.

Furthermore, your cost of buying is negligible in off-plan versus the secondary market, where it is easily 7% of the asset value including registration fees, trustee fees, NOC fees and commissions.

about Rick Bhojwani

As CEO of Raine & Horne Downtown, Rick has also led their off-plan property team ever since the agency began. His background, however, is not quite what one would expect from a realtor. Although, having graduated from Boston College with a degree in Finance, Economics and Philosophy, he brings a fresh and dynamic perspective to the property game, leading his team to success. When asked what his aim is, Rick keeps it simple. His clients shouldn’t just be satisfied shortly after the purchase a property – they should be satisfied even five years later.

about raine & horne downtown

Raine & Horne Downtown is one of Raine & Horne International’s independently managed and owned global agencies. This means that not only do Raine & Horne Downtown have the complete support of the Australia-based parent company, the former also enjoy a solid global network of 350 offices along with a multitude of knowledge, training, systems and other resources.

In Dubai, Raine & Horne Downtown’s main area of focus is on selling off-plan property with developers such as Dubai Properties, Nshama, Emaar and Sobha Hartland.

*Please note: All views expressed here belong to the expert and do not represent those of Bayut.com.