ROI Analysis_ Off-Plan Property vs Ready Property

1. ROI Analysis: Off-Plan Property vs Ready Property Real estate decisions are ultimately judged by one metric, return on investment (ROI). In a dynamic market like Dubai, investors are often faced with a crucial choice: should they pursue off-plan property investment, or opt for a ready property that offers immediate usability?

3. Both asset types play an important role within real estate investment in Dubai, but they deliver returns in very different ways. While off-plan properties are often associated with future growth, ready properties are typically viewed as income-generating assets. The real question is not which option is better universally, but which one delivers stronger ROI based on investment horizon, risk appetite, and market timing. This report provides a structured ROI analysis of off-plan versus ready properties in Dubai, breaking down capital appreciation, rental yield, risk profile, cash flow, and long-term value creation. Understanding ROI in Dubai Real Estate ROI in property investment generally comes from two sources: 1. Capital Appreciation – increase in property value over time 2. Rental Yield – net income generated from leasing the property In Dubai, investors often benefit from a combination of both, but the balance differs significantly between off-plan and ready properties. What Is Off-Plan Property Investment? Off-plan property investment involves purchasing a property directly from a developer before construction is completed. These properties are sold at launch or during development phases, often with structured payment plans. Key characteristics of off-plan investments include: ● Entry at early-stage pricing

4. ● Payments linked to construction milestones ● Value appreciation during the build cycle ● Deferred rental income until completion Off-plan investments are primarily growth-oriented. What Defines a Ready Property Investment? Ready properties are completed units that can be occupied or rented immediately. Investors purchasing ready property for sale in Dubai typically prioritise income generation and lower delivery risk. Key characteristics include: ● Immediate rental income ● Mortgage eligibility from day one ● Lower construction-related uncertainty ● More predictable short-term cash flow Ready property investments are typically income-focused. Capital Appreciation: Off-Plan vs Ready Property Off-Plan Capital Growth

5. Off-plan properties often show appreciation across multiple stages: ● Launch pricing ● Mid-construction valuation ● Near-completion pricing ● Post-handover market value When located in growth corridors and backed by credible developers, off-plan assets can appreciate significantly before the buyer even takes possession. This staged appreciation is one of the strongest arguments for off-plan property investment. Ready Property Capital Growth Ready properties generally appreciate at a slower, more stable pace. Because pricing already reflects completion and market maturity, upside is typically tied to: ● Area-wide demand growth ● Infrastructure upgrades ● Market cycles While appreciation is steadier, it is often less aggressive than off-plan growth over the same time period. Rental Yield Comparison

6. Rental Yield from Off-Plan Properties Off-plan properties do not generate rental income until handover. However, once completed, they often benefit from: ● Modern layouts and amenities ● Lower maintenance costs initially ● Strong tenant appeal in new communities Rental yield begins later but may be competitive post-handover. Rental Yield from Ready Properties Ready properties generate income immediately, making them attractive to: ● Yield-focused investors ● Buyers using leverage ● Investors seeking predictable cash flow Rental yield is a major reason many buyers prefer ready property for sale in Dubai. Cash Flow Dynamics Off-Plan Cash Flow

7. ● Lower initial cash outlay ● Payments spread over time ● No rental income during construction Cash flow is initially negative but improves as appreciation accumulates. Ready Property Cash Flow ● Higher upfront capital requirement ● Immediate rental income ● Ongoing operational expenses Cash flow tends to stabilise faster but may limit capital flexibility. Risk Profile Comparison Off-Plan Risk Factors ● Construction delays ● Market cycle changes ● Dependency on developer performance Dubai’s regulatory framework, including escrow accounts and project approvals, significantly mitigates these risks.

8. Ready Property Risk Factors ● Rental vacancy risk ● Maintenance and service charges ● Market pricing volatility While delivery risk is absent, operational risks remain. ROI Timeline: Short-Term vs Long-Term Investment Horizon Off-Plan Property Ready Property Short-term Limited liquidity early Immediate income Medium-term Strong appreciation Stable returns Long-term High growth + rental Consistent income This makes off-plan suitable for growth-oriented investors, while ready property suits income-focused strategies. Leverage and Financing Impact on ROI Financing can significantly affect ROI outcomes.

9. ● Ready properties are mortgage-ready, enabling leveraged returns ● Off-plan properties often require cash or phased payments, reducing leverage Leverage improves yield-based ROI but increases exposure to market shifts. Service Charges and Net ROI Net ROI, not advertised yield, determines real performance. Off-plan properties often benefit from: ● Lower initial service charges ● New infrastructure reduces maintenance costs Ready properties may have: ● Higher ongoing maintenance ● Variable service charges depending on age and management Evaluating net returns is critical for accurate ROI analysis. Liquidity and Exit Strategy Off-Plan Exit Options

10. ● Resale before completion (subject to SPA terms) ● Sale post-handover at market value Liquidity improves as projects near completion. Ready Property Exit Options ● Immediate resale possible ● Stronger buyer pool in mature areas Ready properties generally offer higher immediate liquidity. Market Cycles and ROI Performance Dubai’s property market operates in cycles: ● Expansion ● Stabilisation ● Correction ● Recovery Off-plan investments typically perform best during early expansion phases, while ready properties provide stability during market consolidation. Which Option Delivers Better ROI?

11. There is no universal answer. ROI depends on investor profile. Off-Plan Delivers Better ROI When: ● The investor has a medium to long-term horizon ● Capital appreciation is the primary goal ● Entry is made at early launch stages Ready Property Delivers Better ROI When: ● Immediate income is required ● Lower risk tolerance is preferred ● Financing leverage is part of the strategy Why Many Investors Combine Both Experienced investors often diversify by holding: ● One off-plan asset for growth ● One ready asset for income This blended approach balances cash flow and appreciation within real estate investment in Dubai.

12. The Role of Professional Advisory in ROI Optimisation Maximising ROI requires: ● Market timing insight ● Project selection expertise ● Clear exit planning ● Risk management Professional advisors help investors avoid emotional decisions and focus on data-driven outcomes. Vista Properties’ ROI-Focused Investment Approach Vista Properties evaluates investments through a return-centric lens. Their advisory framework focuses on: ● Matching asset type to investor goals ● Analysing long-term appreciation drivers ● Evaluating net ROI rather than headline numbers ● Supporting both acquisition and exit strategies They help investors decide when to buy off-plan property in Dubai and when a ready asset makes more sense.

13. ROI Is About Strategy, Not Preference Off-plan and ready properties are not competitors, they are tools. Each serves a different purpose within a structured investment strategy. Off-plan property investment excels in capital growth and early-stage value creation. Ready property for sale in Dubai excels in income stability and liquidity. The strongest ROI outcomes come from aligning the right asset with the right objective at the right time. Vista Properties remains committed to guiding investors through this decision-making process, ensuring every investment in Dubai is backed by clarity, analysis, and long-term value creation.