They are far higher than the 10 to 30% annual premiums for completed properties, it has emerged. The figures confirm why off-plan purchases are the most popular.
'Generally prices make the biggest jump upwards starting six months before handover until six months after it,' said Amr Soliman of Blu International Realty.
'Properties that are commanding the highest premiums in the market are currently those nearing completion,' he said.
One example is Jumeirah Lake Towers where the increase has been not less than 70 to 80% in the last six to eight months, even before hand-over began on the development.
'These premiums are one of the highest in the market, higher than even completed projects,' he added.
Adham Roshdy, director of sales for residential properties at Dubai-based Coldwell Banker, has found that nine out of 10 residential property buyers in the market prefer to buy off-plan.
The trend is confirmed by Colliers International. 'Potential profit on off-plan properties is said to be higher than profit on completed projects, owing to favourable payment plans for first-time buyers,' said John Davis, chief executive of the firm's Dubai division.
At the Villa Project, a development by Dubai Properties and Mizin in Dubailand, which is due for handover by the first quarter of next year, prices have appreciated more than 200% in the last two years. There are similar increases at the Al Barari project in Dubailand.
'The investor market for off-plan or under-construction purchases remains very strong. There is still value in projects purchased off-plan where discounts against completed values are expected to compensate for the timeline for delivery before the property can be lived in or used as an income producing asset,' said James Knowles, director for sales and leasing, at Asteco Property Management.
Within off-plan properties, apartments have been earning a higher return on investment than villas depending on the location and developer, according to Dubai's brokers.
'This has been happening because people are looking keenly towards ready apartments. The Golf Towers by Emaar, a twin residential tower development overlooking the Emirates Golf Course due for completion in four to five months, has already achieved a 200% profit since its launch two years back. The interest on the tower escalated further towards handover time,' said Basel Al Kasem, CEO, Al Basel Group.