Published: January 15, 2025

Buying off-plan property: a comprehensive guide

Written by Alicia O'Boyle
Birmingham centenary square birds eye view

Buying off-plan property investments has become increasingly popular over the last decade. By purchasing a house or flat during an early stage of development, the investor could achieve significant savings on the market price of new-build properties—and potentially see more lucrative returns on their investment. 

But what is an off-plan property, exactly? How do these kinds of property investments work, and why should you consider investing in off-plan property rather than buying an existing home?In this off-plan property guide, we will answer these questions and more. Read on to explore what makes buying off-plan one of the best investment strategies in the current UK property market.

What is an off-plan property?

Off-plan property is real estate that investors purchase before the construction process is completed, or in some cases, before it has even begun. Buyers commit to the investment based on architectural floor plans, designs and developer projections; in return, they often get to buy the property at a price lower than its market value. 

In the UK, off-plan property sales started growing in popularity in the early 2000s. Cities like Manchester and Birmingham in particular have undergone dramatic regeneration in recent years, particularly in centrally located areas with high rental demand. Off-plan investments offer an opportunity to share in this growth and secure lucrative capital gains over time. 

What sets off-plan properties apart from existing homes is their high specification. Many new property developments offer modern urban living amenities, such as gyms and concierge services, and eco-friendly designs that reduce utility bills. These properties are built to a higher standard, often with better warranties and lower maintenance costs, making them more appealing to both property buyers and renters compared to older, existing properties.

How to buy off-plan property

Before you dive into off-plan property investment, it’s important to decide on your goals and do your research. 

To start, decide what is most important for you: capital growth over time or rental income. There are developments that align better with one goal or the other. 

With your goals decided, study reports from reputable sources like Knight Frank and JLL to get a clear view of current trends. This will help you decide key points like which city to invest in, and which areas of a city best match your goals. You could also speak to a property consultant or a trusted developer, each of which can provide insights on the best investment opportunities type on your budget and preferences. At Select Property, we have over 20 years experience in delivering high quality, premium developments. By choosing Select, you will be working with a trustworthy and reputable developer with a mature and established portfolio. 

Once you have identified a potential investment, speak to a mortgage broker or legal advisor to understand the financing options available to you, and consider property management options. Off-plan property in the UK often comes with management services: our own in-house letting company – Select Residential, is a fantastic choice to give you a hands-off investment experience and a more passive source of income. 

If you would like to learn more, read our full guide on how to buy off-plan property.

The benefits of buying off-plan development

Investing in off-plan property offers several advantages over purchasing existing homes, from the potential for accelerated capital growth to higher rental income due to modern amenities and design. In addition, off-plan investments are often found in high-demand areas.

Accelerated capital growth

Off-plan property is a mid- to long-term investment rather than a short-term one; quick returns like those acquired from property flipping are far less common in today’s market than that of the 90s and 00s. Even so, buying off-plan property can offer dramatic and fast returns on investment compared to purchasing an existing house or flat.

Some investors are hesitant about off-plan property because they worry their funds will be “tied up” during the build process. However, what investors do not realise is that their deposit can generate significant returns even before completion.

For example, if you purchase a property for £390,000 with a deposit of £97,500 (25%), and the development completes in 2025, a 12% capital growth over the build period would mean the property’s value has increased by £46,800. You have not just made 12% on your money—you have made a 48% return on your initial deposit.

Very few other property investment options can offer such a high return in such a short period. Coupled with the fact that developers typically offer discounts on homes sold before construction is complete, this makes off-plan property a highly profitable option, especially when working with reputable developers who have a strong track record.

High rental income

Another key benefit of buying off-plan residential property is the potential for high rental income. Post-completion, rental income in off-plan developments is typically better than in existing property for several reasons:

  • World class amenities: Off-plan developments cater to the lifestyles of modern city-centre residents, with amenities like 24/7 concierges, security systems, swimming pools, gyms and more. With amenities that simply can’t be found outside of this kind of development, landlords can safely charge higher rents.
  • City-centre locations: Developers understand what underpins tenant choices, so off-plan developments are built in prime locations in city centres, next to transport links and in close proximity to work, transport, leisure and shopping areas. Residents will always be willing to pay a premium for convenient properties.
  • Diverse tenant base: Off-market developments cater to a wide variety of potential tenants: young professionals, university students and graduates, young couples, families and anyone interested in living a city centre lifestyle. This creates strong demand, allowing landlords to charge higher rates and minimising the risk (and length) of potential void periods. 

Most, but not all, off-plan developments offer these advantages–so keep them in mind when making your choice of where to invest in property if your goal is long-term rental income.

Long-term ROI and rental demand

Buying off-plan property in Manchester, Birmingham and other up-and-coming UK cities offers great potential for long-term ROI. As these urban areas develop economically, they attract businesses and residents and are quickly growing robust rental markets. This is a strong alternative to investing in the London property market, which has slowed down significantly in recent years. Many off-plan developments in these key areas, unlike existing houses and flats, are strategically located within existing regeneration projects. These initiatives revitalise underdeveloped areas and provide much-needed local infrastructure like parks and community facilities. This drives up property values both inside and outside the development—meaning higher profits when you eventually choose to sell. This demand will only increase as growth continues, and investing in off-plan property taps into this demand.

Buy an off-plan property investment in Birmingham or Manchester

At Select Property, we have a strong track record of introducing investors to high-ROI off-plan properties of the highest calibre. That includes One Port Street—a new development that doesn’t just tick the boxes, but defines new ones. This landmark project in Manchester’s Northern Quarter is the future of luxury city living, with 477 high-spec apartments, top-quality amenities and cutting-edge design. 

In Birmingham, our latest prestige development—Edition Birmingham—occupies prime city centre space and offers tenants an unparalleled 14,000 sq ft of amenities, and with a focus on wellness and art, is a masterpiece in modern living. 

For more information about buying off-plan property in Manchester, Birmingham, Sheffield and more, contact Select Property today. Our consultants will be happy to talk you through our most exciting off-plan property investment opportunities and explain how we can secure you lucrative rental returns.

Share Article
February 5, 2025
First look at One Port Street’s completed apartments
February 4, 2025
EY invests in Birmingham with major office move
February 3, 2025
A guide on UK mortgage rates
January 15, 2025
Buying off-plan property: a comprehensive guide

Are you considering your 2025 investments?

Newsletter Sign Up

Be the first to hear about new investment opportunities and property insights.

By submitting your details via this online form you agree to be contacted via email. We do not share your personal details with third parties. To view our full Privacy Policy click here.