Nine rules of wise investment in real estate in Dubai

real estate in Dubai

Property in Dubai

In modern conditions, the search for additional sources of income comes to the fore. An unstable situation, a pandemic, complex pension systems – all this pushes people to invest. In the 2020s, investing in property has become especially popular: this method of generating passive income can be easily mastered, especially with the help of professionals. This is an important remark: before you start investing, you need to conduct a serious analysis, study the market and weigh the risks. So that the preparation does not drag on for a long time, we have put together 5 rules that will help you invest money correctly and earn even more. So before checking out the cost of apartments in Dubai Marina, Palm Jumeirah, or Downtown Dubai, have a look at this quide.

Decide on a goal

An additional source of income, especially a passive one, will not only pay for itself, but also make a profit. Investment in profitable real estate can be such an option. However, first decide what you need to invest for: do you want to save capital, increase it, or secure yourself against inflation? The choice of property depends on your choice. Conduct a market assessment and calculate an approximate forecast of profitable offers: study supply and demand, compare the best options.

Consider risks right away

Buying real estate, like any other way of investing, has a number of risks. When purchasing a new building, one should always take into account such problems as the bankruptcy of the developer, or the failure to meet deadlines that delay construction.

Therefore, even at the stage of choosing a property, carefully study the reputation of the developer. Do not get involved with companies new to the construction market and those with a bad reputation. Be sure to study what housings the company built, what was their quality, whether it handed over the house on time.

Choose the right option

Experts say that property investments are the safest investment option – at least in comparison with stocks and startups. When you have calculated the risks and decided on the goal, it’s time to start looking for a suitable option for the purchase.

Develop a strategic plan

Decide what type of investment suits you – long-term or short-term. 

  • The first is profitable when investing in a growing market and makes a profit when the value of assets grows.
  • The second is more suitable to use when you purchase hotel and commercial real estate. Profit is generated by renting out a property and opens up additional opportunities for passive income.

Determine your financial capabilities in advance and, based on this data, begin to build an investment strategy and repayment terms. 

Choose the type of real estate in Dubai

Commercial, residential or off-plan from a foundation pit and subsequent sale? Choose the most promising projects. Real estate of commercial and residential type are less subject to falling prices and are successful in metropolitan areas. In big cities, such as Dubai, people willingly rent housing rather than buy their own, so there will always be a place for a new landlord in the real estate market. But first – the choice of an apartment in which you are going to invest. Consider the layout features (so that, e.g., you can divide the apartment into small studios and rent it out to two people at once), the view from the window, the proximity of retail, recreation and entertainment facilities. These factors determine the demand for your apartment.

Apart-hotels will become a commercial option. Now they are considered as a profitable replacement for apartment complexes in residential areas. These are not hotels with a kitchenette in the room, but full-fledged housing where people can stay during a couple of days or for a long time (even with the possibility of temporary registration). Most often, apartments belong to different people, but they can be easily rented out and part of the obligations for maintaining the premises can be shifted to special management companies.

Check out the areas

Before buying, you need to study all the pros and cons of the areas in which you are trying to find property. Location matters: in places with good transport interchange, parks or developed infrastructure, the demand for housing is higher. But next to noisy freeways or an industrial zone, apartments are cheaper, but less popular. When buying a property, look at every little thing – even potential neighbors, because the details greatly affect the success and price.

Consider perspective

To earn as much as possible on profitable real estate, you need to carefully analyze such nuances as infrastructure and location.

To do this, you need to roughly imagine your target audience. Students will actively rent an apartment near educational institutions, families with children in a residential area, where schools, kindergartens and clinics are within walking distance. Such apartments are best rented for a long time.

And if you are focused on daily rent, then you should pay attention to the housings that are located near the main attractions or in the city center.

The presence of public transport or metro stops nearby and an interchange from which you can get to any part of the city also seriously affect the cost of an apartment in Dubai. And this must be taken into account when evaluating a property.

Check the news periodically. If the city’s development plan includes the construction of a new metro station, the expansion of a road, or the emergence of a new transport hub, then the value of real estate that is located nearby will soon increase.

Focus on market conditions

To choose the right type of real estate, be guided by the state of the market. So, during the pandemic, the demand for warehouses and suburban real estate increased. But the segment, which includes offices and retail space, suffered the most. Many simply decided not to return from remote work.

Real estate agency in Dubai

When choosing a profitable property, there are many nuances and pitfalls. These are both legal subtleties and design features. In this area, it is very difficult to choose the right option that will bring stable and good profits. Therefore, the best solution is not to risk, but to trust the professionals. Ax Capital real estate agency is ready to assist you. All you need to do is to visit their website and start deciding on your investment options.

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