The market is ready for investment. However, this does not imply to anyone and everyone who invests in the Dubai property market to be eligible to earn a large ROI. Strategic planning is required to make a wise real estate investment and benefit from the property market’s golden run.
To find out more about making a smart real estate investment, continue reading.
Below, are some of the major aspects one should keep in mind in order to call their real estate investment, a smart one.
- Understanding the real estate market
Making a strong real estate investment without understanding the market and knowing where it’s going, what’s trending, what the future looks like, and so on, will can be a big deal for your pockets. So, make it a point to learn as much as you can about market sentiments and conditions. Hiring an expert or seeking advice from a top Dubai property portal can be extremely beneficial in this regard.
- Know about Different Property Types and know their value
In Dubai, there are various types of properties. They differ in price, ROI, architectural design, and other aspects. Before entering the property market and making a real estate investment, it is critical that you understand them and their value. In general, properties in Dubai are classified into two types: ready and off-plan. Ready properties, as the name implies, are ready for the buyer to move in. Off-plan properties, on the other hand, are still in the planning stages. As a result, they are less expensive than ready properties.
According to recent data, the secondary (ready) market accounted for approximately 58% of total sales transactions in the first quarter of 2022. This demonstrates that the secondary market is dominating the real estate sector and is therefore more suitable for investment at the moment. However, because prices in the primary market are lower, it is a better option for those on a tight budget. Based on their structure and layout, these properties are further classified into different types. In Dubai, for example, you can select from villas, apartments, townhouses, penthouses, and duplexes. Investors can also purchase plots and lands.
Villas, among these property types, have recently seen an increase in price. The current rate of growth is expected to continue. As a result, purchasing a villa in Dubai as an investment can help you earn a high ROI. You can also rent it out and maintain a passive income stream. Apartments, on the other hand, were considered “hot properties” until recently. However, when compared to villas, their price and demand growth has slowed, particularly during the COVID and post-COVID scenarios. Recent trends have shown a slight but steady improvement, with their prices increasing by nearly double digits.
When it comes to making a real estate investment, location is everything. It has an impact on the initial cost, ROI, and future prospects. As a result, you must choose your neighborhood/community wisely. Before settling on a community, conduct extensive research on the area, property prices, and current and future development. This will assist you in determining the best areas in Dubai for real estate investments.
Even if the community is located outside of the city center, but it is home to many future developments, investing in real estate there is a wise decision. Take, for example, Dubai South. As a result of hosting Expo 2020 Dubai, the area has seen a significant increase in growth and demand. Furthermore, the presence of District 2020 will increase the value of the property. This development has already piqued the interest of investors.
The most recent residential projects are being developed in a more sustainable and efficient manner, particularly in advanced metropolises such as Dubai. Leading developers are now making concerted efforts to employ environmentally friendly practices in order to reduce carbon footprints and conserve natural resources. In terms of demand and value, such projects have better growth prospects. As a result, it is recommended that you select a future-proof project if you want to make a real estate investment that will pay off in the long run.