Investing in Under Construction Projects

Posted On May 15, 2018

There are different ways of investing in real estate, investing in under construction projects is one of them. This way of investing has numerous advantages and disadvantages. Below, Murabahat tackles such way of investing.

Firstly, Advantages of Investing in Under Construction Projects:

  • The most important advantage of investing in Under Construction Projects is that the price of the units is lower than the units in the already finished projects. Also, you need to know that every phase of the construction has a different price as the closer the end of construction, the higher the unit price,
  • When buying a unit in an Under Construction Project you’re expected to gain high revenue when offering such unit for sale as the value of the unit is greatly increased after delivery.

Secondly, Disadvantages of Investing in Under Construction Projects:

  • You may receive a unit that is not compatible with the agreed specifications and to avoid such issue you have to be careful when choosing the real estate company and choose one with a good reputation,
  • By buying a unit in an Under Construction Project you’ll gain a profit from investing after a while till the construction get done. But, when comparing the profit you will get from such project to the already finished projects, the difference is worth the risk,
  • After receiving the unit you may face some legal problems in the project. Therefore, you should make sure that you are dealing with a secured company for a successful real estate investment.

So, if you’re thinking of investing in Under Construction Projects you need to put the below points into consideration:

  • The location of the project as it affects the unit price,
  • The available services near the project especially the transportation,
  • The project infrastructure.

Murabahat will guide you in choosing valuable projects while ensuring that you gain high profit.