Want to know more about what can get you the perfect investment in Dubai? Continue reading for more.
There is a major and crucial difference between buying a property for investment and buying a home for yourself. Therefore, it is important for you to pay attention at what you want to do when you decide to deal with a property, using the right criteria. Buying a property in Dubai that would be your future home is a decision that involves a range of emotions, i.e. from the location of the property to the exteriors to the interiors, its attributes and the space, overall. Although, while purchasing a property in Dubai just for the sake of investment, it would involve a complete strategic process. It becomes a crucial choice whether you want to consider a rental return, capital growth potential, demand, etc.
You might be wondering, what can be the possible key points as an investor while purchasing a property in Dubai :
Whether in the form of annual investment or a long-term capital, returns on investment can be one of the most crucial points for investors. Looking at how the Real estate market has been growing in Dubai, investing in a property can be one of the most pleasing treats out there. Considering the different types of buyers and investors in Dubai, its real estate market is very welcoming in terms of first time, existing or potential buyers. This is important whether you want to enjoy the benefits of the property or give it out for rent to potential people considering Dubai for their next vacation. Once this is decided, investing in a property truly becomes a piece of cake.
The real estate market will agree with the fact that the location of the property you invest in should never be underestimated. Cost can vary from location to location and as an investor, you wouldn’t want to face loss in terms of anything. Moreover, the location of the property and the returns on investment go hand in hand with each other, i.e. the better your location, the better would your returns on the investment be.
Some focus-worthy aspects would be :
- Area demographics
- Population trends
- Rental demands
- Public transportation
- Rental rates
- Kinds of housing
- Recent sales trends
- Future planned developments
- Properties that get you a higher ROI (Return On Investment)
The type of property you buy are usually determined by your investment focus points as well as the location of investment. Usually, it is believed that apartments are far off than villas and townhouses in regard to ROI. Apart from this, you can consider an off-plan property that does not bring profits but gets you a higher resale value.
- Make your research game strong and analyze the market well
It can sometimes get difficult to make a choice between the wide range of properties that Dubai offers. You should always make sure that you have researched the real estate market based on your key aspects of the property in order to make the most out of your investment. Begin by investigating investing patterns, current trends, and forecasts. More importantly, as Dubai’s skyline continues to add to its stunning list of concrete creativity, do some research on the neighborhood where you want to live. Newer projects are frequently designed to appease the hungry investor. The more you learn about real estate, the more you will understand this market.
It’s also worth noting that some houses are in a ‘free hold’ zone. When you buy a property in Dubai in such an area, you gain full ownership and flexibility over the property, which means you can design it however you want.
- The distinction between investment and expenditure
After comparing the number of properties and conducting market research, you’ll need to examine your personal spending and saving habits and perform some math. For those planning to invest and then rent out their property in Dubai, your cash flow equals the rent you expect to receive (minus costs such as upkeep, taxes, insurance, and repairs). If you want to invest and use the property as a primary residence or vacation home, your annual income (minus your monthly expenses) will equal your cash flow. It’s important to remember that all of the above is dependent on your investment goals in Dubai, as well as the current real estate market. International rising markets, such as Dubai, are expected to provide an 8% higher ROI than others.
You should always have an exit strategy in place because, like most other assets, you will want to sell your investment at some point. As a result, you must know how long you intend to keep your home investment and what your selling costs will be. This brings us to one of the aspects that make Dubai so appealing as an investment destination. That means NO TAX! As a result, any gains on the new sales price benefit the owner, and because the buyer typically pays the transfer fee and agency commission, the seller incurs almost no expenses.
- Consultation with a Real Estate Agent
You should consult an expert real estate agent now that you are aware of so many factors to consider before purchasing a property in Dubai. An agent in Dubai stands out from the crowd due to their knowledge of the industry, market trends, and changes. What you really want is to get the most out of your investment, and top real estate agents understand the market well enough to help you, fetch your dream property.