Like every other market in the world, Dubai’s property market also suffered a setback in 2020 due to the global pandemic. However, after a brief sabbatical, it is back on track and eyeing a quick and strong recovery.

This strong recovery owes greatly to the support from Expo 2020 and the return of foreign investors in Dubai, thanks to the resumption of international flights. With increasing property prices and demand, the interest of both local and foreign real estate investors has also increased. This has resulted in an influx of investors belonging to different nations and seeking investment opportunities in Dubai.

For example, Israel has forayed into the market and is expected to join the top 10 clubs this year. Thus, it’s safe to say that the Dubai property market retains its charm as it continues to attract investments from many leading countries around the globe.

This, however, does not mean that every investment made in the real estate sector guarantees profitable results. You need to be tactful, smart and well-versed with the market to gain high yields.

6 Practical and Effective Tips for Real Estate Investors in Dubai

The following tips will help you make a profitable real estate investment in Dubai:

1.      Identify Your Budget

This one’s critically important. When you identify your budget, you actually analyse and decide your purchasing power. This will give you the maximum range you can target. It requires doing a lot of homework and research on the market so that you can find out what type of properties you can purchase in the given range.

Property buyers and real estate investors in Dubai have the option to take home mortgage loans. This obviously has many benefits, but one can get carried away due to the ease of financing and may apply for a higher amount of loan than they can afford. This can lead to a troublesome situation in the long run.

Having said that, it is important to note there are mortgage cap limits implemented by the Central Bank of UAE for expatriates.

2.      Determine the Purpose

Some people buy properties for reselling purposes, while some plan to rent them out to earn a passive stream of income. The criteria for property selection are different in both cases. For example, if you aim to resell it later on, you can choose from off-plan properties in Dubai as they are available at comparatively lower rates. However, the drawback here is that you will have to wait for the development to be completed before you could earn ROI on it.

In the case you are buying property to rent it out, there’s a lot to consider. The property should be located in an area that’s suitable for tenants. This means, it should be well-connected, easily accessible, and have basic and advanced facilities for residents.

It is important that you determine the purpose of your investment in advance so that you can sort the property listings accordingly.

3.      Choose Your Area Wisely

The selection of the area majorly depends on the purpose of investment. However, the budget also comes into the picture here.

The property prices in Dubai, generally, come with an expensive price tag. However, there are a few areas, particularly the ones located away from the city centre, where you can find comparatively affordable properties. They are more suitable if you intend to resell them at higher rates. Similarly, there are some areas that can produce better results for those who want to rent out the property.

The crux here is to choose the neighbourhood wisely. It shouldn’t be rushed. Rather, take your time and know about the pros and cons of the selected areas. Furthermore, take into account the future market trends that have the potential to influence the area. For example, areas located close to the Expo 2020 Dubai site witnessed a major improvement in terms of the sales price and rental value as the marquee event commenced.

4.      Deal with Legal/Certified Brokers Only

Dealing with a real estate agent to check out properties for sales in Dubai offers numerous benefits. However, make a point to only deal with certified and licensed brokers/real estate agents. The same advice should be followed when you’re directly dealing with the seller/property dealer. Make sure the person you are dealing with is authorised to sell the property. You should confirm this before scheduling your visit to the said property.

Although the Dubai property market is considered safe for real estate investors, it is still recommended to follow this advice in order to minimise the risk of getting scammed.

5.      Research is the Key

You cannot succeed in the real estate market, particularly in an advanced metropolis like Dubai, if you are not doing proper research. It is one of the key components of becoming a successful real estate investor.

The amount of research required for the selection of the area is already stressed enough above. However, there are various other factors you should research before venturing into the market. For instance, you need to know about the type of property suitable for real estate investors. And knowing this requires thorough research. Similarly, understanding the market trends also requires the investor to do a lot of research, prior to making a purchase.

6.      Take Help of a Well-established Real Estate Firm

Taking the assistance of a well-established real estate firm, i.e. Zoom Property can prove to be a valuable action for real estate investors. We have listings for top-notch properties in areas across Dubai, Abu Dhabi and Sharjah. Designed to facilitate both end-users and real estate investors, our portal also features international listings. All the listings are accompanied by accurate prices, details, and estimated mortgage amounts.

Final Thoughts

In a nutshell, real estate investment includes huge capital. Therefore, the risk level is also on the higher side. However, by following the tips discussed above, real estate investors can yield maximum returns.

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