The Dubai property market is progressing at an unprecedented rate, favouring investors and end-users alike. The property rates are climbing high, and so is the ROI. The record-breaking Q1, 2022, testifies to the superlative performance of the real estate sector in Dubai.

Making a Profitable Real Estate Investment in Dubai

Suffice it to say; the market is ripe for investment. But, this doesn’t mean that anyone putting money into the Dubai property market becomes eligible to earn huge ROI. One needs strategic planning to be able to make a smart real estate investment and benefit from the golden run of the property market.

To help you with this, we have enlisted key steps to make a smart real estate investment in Dubai. Let’s find out more about them:

1.      Understand the Market 

Making a real estate investment without understanding the market and knowing where it’s heading, what’s trending, how the future looks like, etc., is going to be a big mistake that can cost you a lot of money. So, make a point to gain an understanding of the market sentiments and conditions as much as you can. Hiring a consultant or seeking guidance from a top property portal in Dubai can help a great deal in this regard.

2.      Know about Different Property Types and their Worth

There are different types of properties in Dubai. They vary in terms of price, ROI, architectural design and other factors. It’s important that you develop an understanding of them and their worth before venturing into the property market and making a real estate investment.

Generally, properties in Dubai are divided into two main categories; ready and off-plan. Ready properties, as the name suggests, are ready to move in for the buyer. On the other hand, off-plan properties are still in the development phase. Therefore, they are priced lower as compared to ready properties.

According to recent statistics, around 58 per cent of the total sales transactions made in the first quarter of 2022 were recorded in the secondary (ready) market. This shows that the secondary market is dominating the real estate sector and is more suitable for investment in the current times. However, since prices in the primary market are more on the lower side, it makes for a better choice for those with a limited budget.

These properties are further categorised into different types based on their structure and layouts. For example, you can choose from villas, apartments, townhouses, penthouses, and duplexes in Dubai. Plots and lands are also available for investors.

Among these property types, villas have witnessed an increase in price recently. The high momentum is expected to continue in the time to come. Therefore, buying a villa in Dubai for investment purposes can help you earn a high ROI. You can also rent it out and continue earning a passive stream of income.

Apartments, on the other hand, were considered ‘hot properties’ until a couple of years back. However, as compared to villas, their growth in terms of price and demand took a hit, particularly during the COVID and post-COVID scenarios. The recent trends have shown a marginal yet steady improvement, with their prices recording nearly double-digit growth.

3.      Choose the Location Wisely

The location matters the most when it comes to making a real estate investment. It impacts the upfront cost, ROI, and future prospects. Thus, you must choose the neighbourhood/community wisely. Do thorough research on the area, property prices, and current and future development before finalising a community. This will help you determine the best areas for real estate investments in Dubai.

Even if the community is located away from the city centre, but it’s home to many future developments, making a real estate investment there makes for a wise choice. Take Dubai South, for example. The area has witnessed a massive improvement in terms of growth and demand as it hosted Expo 2020 Dubai. Furthermore, the presence of District 2020 will further boost its value. Investors have already started to show a keen interest in this development.

4.      Invest in Future-proof Projects

The latest residential projects, particularly in an advanced metropolis such as Dubai, are now developed in a more sustainable and efficient manner. Leading developers now make conscious efforts to use environmentally-friendly practices in order to reduce carbon footprints and converse natural resources. Such projects have better prospects for growth in terms of demand and value.

Therefore, it’s recommended to choose a future-proof project if you want to make a real estate investment that will reap fruitful results for you in the long run.

A Real Estate Investment in Dubai – A Profitable Endeavour

In a nutshell, it’s safe to say that Dubai has become a gold mine for real estate investors. However, one needs to be a smart investor in order to fully capitalise on the opportunity to invest in this ever-growing and expanding market.

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