Off-Plan Properties

Investing in off plan property means purchasing a property during the construction part of the building process. In most cases the property is purchased at a discounted price to the actual value of the completed state making it an attractive deal for real estate investors.

In most transactions, the investor must pay an initial installment of 10 – 50% depending on the developer and development. Sometimes it is also possible to make reservations for properties by paying deposits.

The off plan model is a great way to purchase new build assets with potential to rise in value during construction and deliver rental returns upon completion.

When purchasing off plan, you will – in most cases – purchase the property at a discounted price. The reason this is possible is that you as an investor assume more risk by investing in a property that is not built yet as opposed to buying a finished property. Seen from the developers perspective, an off plan sale is a great way of financing the construction of a real estate project, but it does of course reduce the profits in the end as the property is sold at an discount in the early stages of the construction process.

The off plan model works in most established markets, but as an investor you must be sure to do your due diligence and market research before endeavouring into foreign real estate markets.

This is where Nordika Invest comes into the picture; we can help you identify and enter into potential profitable real estate deals abroad. Our market insight combined with our profound knowledge of real estate transactions abroad makes us the perfect collaborator when investing abroad.