How to Buy Real Estate in Dubai - Do’s and Dont’s
The United Arab Emirates is 4th best country in the world to invest in. According to the data and analytics (Bayut, Property Finder), Dubai’s economy will grow by 3% in 2023. And it will continue to grow rapidly in the next couple of years. That means investing in Dubai’s real estate market is a very productive way to increase personal assets. But, since you are considering spending a lot of money, it is probably clever to assume all the worst that could happen in advance so as not to lose your initial investment. In the following article, we will cover all the ins and outs of property investment opportunities, common mistakes, best practices, and clever lifehacks that should maximize your profit and exclude all the possible risks. Let’s dig in.
Do Not Try to Save Time
You probably consider spending a lot of money in order to get your dividends in the future. That means that you should not try doing it quickly. Better to be attentive and spend more time beforehand in order not to make the wrong choice. So, get a brokerage agency to provide you with a personal broker that will guide you across districts and tell you about all the advantages of certain projects, certain objects, and certain developers. The more time you spend, the better chances are that you will find that one gem that might be just the best of all choices.
Do Not Focus on Just One Project/Developer/District
You might want to live near Dubai Fountains because this landmark annually attracts millions of people from across the globe. But, never allow your one narrow desire to exclude all the other possible buying options. Yeah, Dubai Fountains are great. Still, that doesn’t mean that you are limited in your choice. As the saying goes, never put all your eggs in one basket. Diversify your risks. Consider other choices, just in case. The same applies to developers, brokerage agencies, and object types (villas, apartments, penthouses). They all compete with each other and they understand it. So chances are that knowing you consider other choices, their offers might even become a bit better. Still, the main thing is to have a variety of choices. Because competition creates a better product. Different choices will give you better options. And in Dubai, they are literally unlimited.
Do Not Buy What You Won’t Be Able to Sell
Yeah, real estate investment means that you probably consider either renting it out or reselling it in the future. Although this is usually the case, chances are that a studio in a not-so-popular district won’t be a valuable asset. Buy assets that are liquid in popular districts with exclusive and original advantages such as location, design, architecture, etc. You don’t need an apartment that will stay unoccupied in the summer.
What to Do and How to Do It Right?
Now we will cover the best practices and provide you with advice on how to buy real estate in the right manner.
Listen to The Grapevine
One of the most useful pieces of advice is to ask friends and friends your friends and acquaintances. Also, do a research yourself. You should have at least incremental knowledge of the market because every agency, every broker, every developer, and every project will promote itself as the best. How do you pick the best if everybody is the best? Listen to your gut and people who advise you not out of sheer hunger for profit.
Know Everything There is to Know
You should accumulate as much knowledge as it is possible. But, do not reach a stage of the so-called analysis paralysis. Visit the city, explore it, google the developers, research the best brokerage agencies, and so on. Become an expert yourself, so that you can come ready with your own opinion and certain concrete desires.
Calculate Your Budget
Imagine you’re going into the store. What is the main factor that will affect your choice? Your budget. You should know for sure how much you’re willing to spend before starting to look. This is one of the most important pieces of advice. Calculate your minimum and your maximum.
Pick a Location and Property Type
Making a wise decision requires full concentration to allow you to focus on what you want and what you need, not just what you can get. The market is huge, so list your criteria and proceed further to find real estate that will meet your criteria. For example, do you want to live on the beachfront with direct access to the Persian Gulf coastline? Palm Jumeirah or Dubai Marina might be the best choice. Do you want a villa or a penthouse? Pick a location with gated villa communities (Dubai Hills), or look for an apartment in Downtown in a high-rise.
Pick a Trusted Agency
Brokerage agencies should meet all your demands and go the extra mile to provide you with a range of choices. Dubai’s developers work with all agencies, so it rarely happens that one agency has an exclusive offer. However, the level of service, knowledge of the market trends, and extensive experience of your broker will help you find projects that will suit all your needs. We at T.H.E. Capital Dubai offer our clients high-level services, so connect with us for a consultation.
So, we have covered the main things you should know about buying real estate in Dubai. Consider this advice as your guideline. Connect with us for a free consultation and read our future articles, in which we will cover in detail all things important related to property investment in Dubai. Keep in mind that you’re probably buying the most expensive thing in your life, so be cautious and attentive in the choices you make.