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          Dubai property: More people opt to buy plots and construct their own custom homes

          June 30, 2022
          in Business, Dubai, UAE
          Reading Time: 3 mins read
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          Property in Dubai: More people opting to build homes instead of buying plots
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          More people are choosing to purchase plots and construct their own custom homes rather than purchasing premade homes from developers as real estate prices reach new highs.

          More people are choosing to purchase lots and construct their own custom homes rather than purchasing premade homes from developers as real estate prices reach new highs.

          “With the property market doing great business, the prices for plots have increased too but not at the same level as readymade houses. More people are opting to build their own home because it gives them so much more freedom to pick out their own designs and materials.”

          The Abu Dhabi Islamic Bank (ADIB) earlier announced the introduction of its first-ever offering of plot finance, which would allow customers to buy land as an investment or to build a home.

          CEO of property company Allsopp & Allsopp, Lewis Allsopp welcomed this move. “It is becoming more popular for residents in Dubai to put their own stamp on properties with renovations whether properties are old or new,” he said. “Having the ability to buy a plot of land using finance gives buyers the opportunity to build a home of their dreams from scratch.”

          According to Jeff, the cost of building a house is comparatively cheaper than buying one. “A client of mine is currently building his own house of 10,000 sq. ft in Nad Al Sheba,” he said. “If he was going to buy the same property from a developer, it would have cost him almost double the amount he has spent now.”

          Three types of people typically buy land plots: investors who want to buy a piece of land and sell it when the price rises; contractors who buy plots, build housing on them and sell them; and end-users who want to buy plots and build their own homes.

          Individuals who want to purchase land and construct custom homes must adhere to the developer’s rules. Before starting building, they must also obtain the developer’s and the land department’s approval of the architectural plans and blueprints.

          Property owner and contractor Mansoor Ali bought a plot in Al Furjan a few years ago. “The plan was to build a townhouse on it and sell it,” he said. “However, at the time the property market wasn’t doing particularly well so I decided to wait it out. Now, with the market doing well, I have resumed work on the project and I am hoping to make a profit out of it.”

          According to Mansoor, there are several benefits of buying a plot and building a house rather than buying a readymade option. “The most obvious reason is that you get a home customized for your family and needs,” he said. “Also, I own a readymade property to which I have made some structural changes. To me, it is a much bigger hassle to get those changes done than to build a house from scratch. For every minute detail, you need to get permissions and so on. So if the buyer is someone who has a very specific idea of how he wants his home, then I would definitely recommend buying a plot.”

          Lewis Allsopp also had a word of caution for prospective plot buyers. “The finance will not cover the cost of the build which makes the concept very costly,” he said, “If the funds are available, this is a great option and will add diversity to the real estate market in Dubai.”

          Tags: Build HomesDubaihomesPlotsReal EstateReal Estate HomesReal Estate PlotsUAE

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