Defying all odds, Dubai real estate is progressing by leaps and bounds. 2022 turned out to be a record-breaking month for the property market, and going by recent performance, 2023 is headed for another strong year. Experts believe that the market will break even more records in the current year.
This means the market is ripe for investment and it’s the ideal time to become a real estate investor in Dubai.
Having said that, getting these opportunities, particularly for a new entrant, can be a tough nut to crack. Still, it’s not impossible. Here are some important factors you must consider if you plan to become a real estate investor in Dubai:
5 Important Factors to Consider When Becoming a Real Estate Investor in Dubai
First things first, you need to understand the importance of budgeting before announcing yourself as a real estate investor in Dubai, or anywhere else for that matter.
As they say, never put all your eggs in one basket. This holds specifically true when it comes to investing in a real estate market. So, you need to be very articulate in deciding what amount you will be investing and in which project.
Your budget should also include other costs associated with buying a property in Dubai. Knowing about the ACTUAL cost of purchasing a property in the emirate will help you in this regard.
Selecting The Right Location
This is of great importance. The ROI depends vastly on the property’s location.
Picture this, you have found the perfect property laced with modern amenities and whatnot! However, it’s located at a remote location, away from the city centre. Sure, it may sound like a great buy, but the result may not match your expectation.
Generally, properties located away from the city centre do not generate a lot of interest. They may prove to be a good investment if you want to reap benefits after half a decade or so, but for instant returns, you should look for a property in Dubai that’s easily accessible and located at a prominent spot, in close proximity to basic amenities and facilities.
Market & Property Research
Although the Dubai property market is considered safe, it is still advised to do complete research before putting your hard-earned money into it.
Also, learning about the latest and expected market trends will help you make an informed decision.
While you’re carrying out market research, make a point to thoroughly investigate the property you are interested in buying/investing in as well. Knowing about its developer, what comes with the property, and other such details will help you negate the risk and make a profitable investment.
Purpose of Investment
Next up, you should be clear about the purpose of your investment. For instance, you need to decide beforehand whether you want to put the property up for rent or sell it to end users.
Doing this, as a real estate investor in Dubai, is important since it will enable you to find a suitable property for your investment. To explain it with an example, if you want to sell the property to another buyer, you can opt for an off-plan property. Since it’s still in the construction/development stages, you will get it at comparatively lower rates.
However, the catch here is that you can’t rent out an off-plan property because it’s not yet ready to be moved in. So, when you’re clear with what you want, you can put your focus on deciding what kind of property you should buy. This will also give you an idea about the ROI you can earn from it.
Becoming a real estate investor in Dubai is not only about buying a property in Dubai, particularly if you plan to rent it out.
Be it an apartment, villa, or any other type of property, it needs regular maintenance and overhauling. Of course, when you sell out the property, it becomes the responsibility of the new buyer. However, if you still retain the ownership and have rented out the property, it’s your duty to ensure proper maintenance.
You can contact a property maintenance company for this purpose or leave this responsibility with the tenant by offering them a rebate on the rent. It all depends on how you want to operate. However, if you are a foreigner, the better advice would be to opt for the former option. This will ensure your property remains in safe hands.
We hope that this all-inclusive guide will help you become a pro real estate investor in Dubai. However, remember that the journey always starts with buying a property, and for this, you need to check the latest listings. You can find them at Zoom Property with complete details.
You can also download our smartphone application for a smooth and hassle-free experience.