How to Invest in Dubai Real Estate
There are a number of ways to invest in Dubai real estate and get guaranteed profits in a certain time. However, there’s no one-fits-all solution because of different ways to invest and get income. For example, you can buy an apartment for further reselling. Or you can purchase a villa and rent it out on an annual basis. Different investment strategies will bring you different profit opportunities. The type of real estate, its location, size, and developer all may affect your potential income. In this post we will discuss all the most important aspects of investing in the Dubai real estate market.
What is an off-plan property? Off-plan projects offer the opportunity to invest in real estate before the start of construction or during its earliest phase. This is profitable for both the investors and developers as well. Developers get money for construction and make sure in advance that the units are sold even before the construction is finished. Investors, on the other hand, buy properties for a much smaller price than they are sold upon completion.
Potential ROI numbers for reselling, depending on the real estate type, size, and location, may reach 50% in just a couple of years upon the initial investment. Moreover, there’s no need to pay the full sum since developers have payment plans and mortgage opportunities. You can find a potential buyer to whom you can resell a unit even before you have paid out your mortgage completely.
Most of the development projects in Dubai offer fully furnished units with ready-made kitchens, bathrooms, and bedrooms. However, there’s a certain kind of real estate investment operation called flipping. It’s an old term that describes the process of buying an empty, unfurnished unit, redecorating it, and then reselling it for a higher price. Redecorating increases the price. However, it also takes additional money. But such units are generally less expensive than the ones already furnished and decorated.
Different developers and different projects have different payment plans. For example, 10/90. You give the initial down payment of 10%. You pay the remaining 90% in consequent years. Payment plans can vary. It all depends on your contract with a developer.
The inflow of expats and foreign citizens who come to live in Dubai creates a constantly high demand for real estate which characterizes the city’s energetic property market. More people need places to live, and more investors are deciding to earn income with the help of Dubai’s booming real estate market.
Upon launch, the prices are generally 20-50% lower than they are after the project is complete. This is your potential profit margin. Another reason people invest in Dubai is to get a residency permit. A minimum purchase of $450,000 allows you to get a 10-year Golden Visa. Smaller purchases will give you a 5-year visa with an option to renew it.
The UAE allows buying and owning real estate in the so-called free economic zones. When you buy a unit, you have 100% ownership rights. If you decide to invest in Dubai real estate T.H.E. Capital Dubai can provide you with full assistance and guidance every step of the way.
Support of the Brokerage Agency
Without any doubt, buying and reselling real estate in Dubai is a major endeavor for most people. You need research and consultancy in order to get the best deal and highest possible ROI numbers. Finding out the best broker will increase your chances of correct investment. For example, which districts have the most sought-after properties? The higher the demand, the better the chances that you will have clients willing to pay to buy your unit.
Renting Out Your Real Estate
A different kind of real estate investment is buying a unit to rent it out annually. This one is more of a long shot. Dubai is a hot tourist spot, meaning that people come here to spend a vacation on the beach or even live here because Dubai is a haven for expats. Therefore, you can rent out your apartment or villa and get a stable passive income. The average annual ROI for rent is 5-10%. And the most profitable option is to rent out a studio. Real estate experts at T.H.E. Capital Dubai know the best spots in the city and will find the most suitable solution to allow you to rent out your property all year round.
Additional Info on The Real Estate Investments
Whether you’re buying, selling, renting out, or reselling a villa and/or an apartment, the assistance of a real estate brokerage agency is a vital component of success. We at T.H.E. Capital Dubai offer a free consultation, a tour with a broker, and support every step of the way before, during, and after your real estate purchase. We help you find the best deals, prepare all documents, and increase potential profits. Connect with us to find out how we can help in your unique case.
Pick a Developer and Decide What to Do
Naturally, Dubai’s developers compete with each other. That’s what makes their projects so unique and original. Choosing the right property is essential. Because your investment won’t bring any profit if you won’t be able to resell or rent out your apartment/villa. Therefore, think ahead and work with a trusted developer. You can look at the list on our website. Also, don’t hesitate to browse through different Dubai districts to pick the one that suits your needs the most. Finally, decide whether you will resell or rent out your property since it affects the whole process.
All in all, we have covered some of the most important aspects of investing in Dubai real estate and the opportunities that come along with it. You can attempt flipping, reselling, or renting out your apartment/villa to make a profit. Just remember to consult with a brokerage agency or connect with us for assistance. Good luck!