Buying a house or flat off-plan means buying it before it's been built. This has many advantages and disadvantages for buyers as prices are usually lower and by the time the property is completed, its value will have significantly increased. This article aims to discuss how buying off-plan can improve housing market prices.
According to Statista, new housing construction with more than five units has risen 37.3% compared to 2021. This increase in construction can help ease the demand and supply gap and eventually lead to stable and more affordable prices.
There is a housing shortage in many countries, with many urban areas being densely populated. This has led to a rise in property prices making it difficult for many people to own a home. According to The Balance, the U.S. has a shortage of 3.8 million homes. Buying off-plan can help ease the housing shortage by increasing the supply of homes. Developers can build more units at a lower cost and sell them off-plan to buyers. This can help to reduce the demand-supply gap and eventually lead to more affordable housing prices.
Buying off-plan is an excellent investment opportunity for buyers. According to The Motley Fool, off-plan properties can be cheaper than completed properties, and buyers can customize their properties to their liking, resulting in a unique and personalized living space. Additionally, by the time the property is completed, its value will have significantly increased, allowing buyers to make a profit by selling the property or renting it out.
In conclusion, buying off-plan can improve housing market prices in several ways. It can increase the supply of housing, ease the demand-supply gap, and provide an excellent investment opportunity for buyers. However, there are also risks associated with buying off-plan, and buyers should do their research before committing to a property. Overall, buying off-plan can be a great way to secure a home, invest in property, and help improve the housing market.