Should You Buy Off-Plan Property?
There’s no better time to reassess your investment portfolio than at the start of a new year. This is when you can reflect on your investments from the previous year and realign your strategies to best meet your financial goals. For property investors, it’s also the ideal opportunity to consider alternative assets and whether investing in off-plan property could optimise your portfolio.
In this article we explore whether you should buy off-plan, the pros and cons of the investment asset and how it fares against completed property.
Understanding Off-Plan Property
Generally speaking, off-plan property involves purchasing a property before – or during – the build period. While a completed property is typically the most common avenue for investment, off-plan property investments in the UK are becoming increasingly common. This is because they provide several unique benefits for investors that other properties can’t.
A useful side note here is that while it’s possible to purchase off-plan houses, apartments are usually the more popular off-plan asset to purchase for investment.
Investing in off-plan property comes with a wealth of monetary benefits, one being the actual price of the property. This asset type is usually sold at a more affordable price than completed property, even though they’re typically higher in value upon completion.
This opportunity to enter the market at a lower price is an attractive prospect for investors and one of the key drivers behind the popularity of the investment vehicle.
The Off-Plan Property Process
While processes may vary between companies, purchasing an off-plan property investment generally follows some fundamental steps.
Much like purchasing a completed property, you will still have to pay a reservation fee and deposit – which is usually around 20% of the full price – followed by the remainder of the payment upon completion.
You’ll still have to go through a solicitor and you’ll still need to consider all of the same taxes that you would with a traditional property purchase, including Stamp Duty Land Tax.
Between build and completion is the period where you could see the value of the property rise, although this depends on the state of the market. It’s important to remember that during this time your money will be effectively ‘locked up’ until you complete, so if you need access to withdraw the funds, you’ll be unable to do so.
You should always speak to an investment professional before you invest in off-plan property.
Related: 5 Common Off-Plan Investment Mistakes
The Benefits of Off-Plan Property Investment
As well as the more affordable entry prices, off-plan property usually offers more opportunities for capital growth. By investing either before or during the build process, the property market will usually be in a different position by the time it completes.
Recent market evidence shows that UK house prices continued to grow through 2024–25, albeit modestly, and forecasts for 2026 point to further moderate growth. The Office for National Statistics reports that UK average house prices were around £270,000 in mid-2025, with annual growth of about 2.8%.
Industry forecasts suggest house price rises of around 2–4% in 2026 as affordability improves and mortgage costs soften.
Obviously, these price increases largely depend on the location that you’ve chosen to invest in. Since off-plan property investments in the UK can deliver greater income via capital appreciation, it’s a great idea to look for locations within the market forecasting imminent value increases.
Regardless of whether you’re investing in a completed or off-plan property, emerging locations are pockets of potential for investors. Defined as locations undergoing considerable regeneration, the transformation of these areas not only invites more economic growth, but it often sees the local property market thrive as a result of increasing demand and additional investment.
For those investing off the plan in emerging areas, the property’s build period combined with these regeneration schemes means that investors can often see meaningful price growth on the property upon completion. In addition to this, demand to live in regenerated areas typically leads to an increase in tenant demand, pushing average rents higher and allowing for stronger rental performance.
As well as the monetary benefits, investing in off-plan property also means that upon completion, you’ll have a shiny new property. Fitted with the latest fixtures and fittings, the added luxury of a new-build apartment will be more appealing to prospective tenants when you come to market the property.
Completed vs Off Plan Property
The most common reservations property investors have about off-plan property revolves around having their funds tied up during the build phase, with this considered to be an added ‘risk’. Compared against completed property, this is one of the most notable differences, although it isn’t necessarily a drawback.
Research is the key to any successful investment, and if you carry out your due diligence to find a reputable property developer, you significantly minimise this ‘risk’. If a property developer has a consistent track record of producing high quality builds completed on time, there should be little concern surrounding completion and investing off the plan.
While the build phase for off-plan property can offer many opportunities for capital growth, investing in completed property comes with the reassurance of an immediate, tangible income. If you choose completed property, you may not benefit from as much capital growth but chances are, you’ll be able to rent the property out straight away to start earning your passive income.
Similarly, immediately entering the property market means that investors know exactly what to expect in terms of prices and rents, whereas the average build period for an off-plan property can still be around two to three years. Going by the most recent performance and forward-looking forecasts, prices are expected to rise modestly over that period, but there’s always the possibility that prices could fluctuate.
Related: Top 10 Features of Profitable Rental Properties
Off Plan Property – Is It Right For You?
The question remains, should you buy off-plan? As we’ve discussed, off-plan property investment comes with a wealth of opportunities, many of which are determined by property price growth and rental market forecasts.
UK house prices showed resilient growth through 2025, and industry forecasts point to continued moderate increases in 2026, with annual rises of approximately 2–4% expected.
Rental markets also remain strong, with rents continuing to increase in most regions as demand for private rented housing stays robust.
Not only does this asset class offer the opportunity for increased capital growth and access to a brand-new apartment, the forecast trajectory for house prices and rental demand gives investors even more reason to consider off-plan property investments as part of a diversified strategy.
Frequently Asked Questions
What is off-plan property?
Off-plan property is a property purchased before or during construction, often at a lower price, with potential for capital growth once completed.
How does the off-plan property process work?
Typically, investors pay a reservation fee, followed by a deposit (around 20%), with the remainder on completion. Legal checks and Stamp Duty Land Tax still apply, and the investment is tied up until handover.
What are the benefits of off-plan property investment?
Off-plan properties often offer lower entry prices, potential capital growth, and brand-new finishes. Investing in emerging areas can also increase rental demand over time.
How does off-plan compare to completed properties?
Completed properties provide immediate rental income and clear market value, whereas off-plan offers higher capital growth potential but carries risk during the build phase. Choosing a reputable developer reduces this risk.