So you finally decided to navigate the Dubai real estate market and came here to help make up your mind. You’re in the right place. It’s no secret that smart investors have been harvesting their investment yields from Dubai real estate for years, making only the ones who haven’t started yet a bit jealous. But don’t worry, after reading this article you can catch up to them.
When we look at the investments of the world’s billionaires and multi-millionaires and how Dubai real estate has been a part of their diversified portfolio, we need to carefully examine what has been attractive to them over the years and what they do to overcome the challenges that face them. After all, the smart investor is the investor who mitigates others’ mistakes and benefits from the wisdom of their good decisions.
So before we start, let me ask you: which do you prefer to hear first: good news or bad news? Well, since we can’t create a poll while you’re reading, let me choose for you: good news.
Table of Contents:
The Good News: Opportunities Everywhere
Business Hub
Demand for property
Own a Piece of Dubai
World-Class Developers & Communities
The Not-So-Bad News: Can Always Be Overcome
High Competition
Legal & Regulatory Frameworks
Fees and Charges
Old vs. New
The Good News: Opportunities Everywhere
Business Hub
If I ask you which is better: to be the only business operating in a district or to have at least one competitor in the same area? Novice investors would say be the only one, while veteran investors would welcome competition. See, the trick isn’t just in the competition aspect of the matter itself, but rather the existence of a business hub that gathers business professionals into one place. The fact that there is a business city that attracts investors simply means that the opportunities for growing your business and investment are super rich. Entrepreneurs, high-profile individuals, and multinational corporations all gravitate toward Dubai, which means a booming economic growth and a secure supply of real estate investment.
Demand for Property
One thing is a surefire to look for when you aspire to succeed in any business or investment: demand. That’s exactly what Dubai provides. The robust population growth Dubai has been witnessing is simply the perfect environment for real estate investment and transactions. The increasing population growth acts as a driving force for leveraged investment opportunities, which in turn means better yields and continuous growth. The high standard of life Dubai enjoys and the thriving economy it has – naturally attract expats and entrepreneurs from all over the world. It’s like the gasoline on fire for the demand for residential and commercial properties, creating the dream market for smart investors.
Own a Piece of Dubai
Let’s be honest, with all the stellar propaganda surrounding Dubai, all the majestic scenes you’ve been seeing about it, and the news you’ve been hearing about it, haven’t you dreamt about owning a piece of Dubai? The surprising answer is that Dubai is actually inviting you to do so, and successful investors have been benefiting from this advantage over the years. The power of freehold ownership. Dubai allows non-UAE nationals to own properties and even communities in Dubai itself. That means that you have the full ownership rights to sell, occupy, or lease your property without any restrictions whatsoever.
World-Class Developers & Communities
How many days do you think it takes for a newly launched project in Dubai to be sold out? I’ll save you the search; it’s 1 to 2 days. Shocking, right? I’m telling you, investors have been creating fortunes, and probably you’re the only one still thinking. Dubai is blessed with creative yet professional real estate developers that have turned the city into a city of the future. Legendary developers such as Emaar, Sobha, and Damac have created stellar communities such as Dubai Marina, Creek Harbour, Sobha Hartland, and Damac Hills, in addition to the existence of iconic communities such as Palm Jumeirah, JVC, and JVT have changed the real estate landscape of Dubai for the better and have altered how investors and residents alike view the real estate market for the best.
The Not-So-Bad News: Can Always Be Overcome
High Competition
The high competition in some areas can make it a bit hard for new investors to enter the market. As we mentioned earlier, the Dubai real estate market is like a goldmine, and it only makes sense to have the volume of developers and investors increase. It becomes relatively challenging to stand out in some crowded markets. However, this challenge can easily be overcome by simply researching the market carefully and focusing on the areas with strong demand. Even better, work hand-in-hand with experienced real estate professionals to help you navigate the competitive marketplace and guide you through every step of the way.
Legal & Regulatory Frameworks
Win-win is Dubai’s go-to. Dubai’s mindset towards investment is “your success is our success”. So it’s natural that the city of Dubai strives to protect its investors’ interest. Even though that’s a positive thing, it makes it difficult for international investors to navigate Dubai’s legal and regulatory landscapes. It is of crucial importance to be compliant with the local laws and regulations to mitigate any potential risks. The increased stability and transparency in the Dubai real estate market thanks to the strict regulations that safeguard the investors’ interests came at a price of complex and challenging navigation of the property ownership process. This, however, can be resolved by seeking professional advice from realtors who know the market like the back of their hand.
Fees and Charges
You might already know this at heart, but it is important to mention it just in case you need a reminder. Everything has a price, we all know that, yet it’s important to take into consideration something like mortgage fees and charges that are closely related to financing the purchase of your property. These charges can vary from mortgage registration fees to processing and valuation fees. Even though these fees can be minor compared to the overall price of said property, every dirham counts, and these charges can impact the overall transaction cost of financing your future property.
New vs. Old
The secret word is: amenities. The supply and demand balance can be juggled according to the best interest of buyers and sellers. That’s exactly what happened when new projects with better amenities were introduced to the market. The old properties became less desirable and the demand for them decreased. That’s why it has become super important for aspiring investors to look for the number and quality of amenities in any project they invest in. Amenities are one of the key contributing factors to the high demand for any property. This can be secured by looking for the must-have amenities most modern projects have. Some of the most important amenities include parks and gardens, gyms and swimming pools, schools and medical facilities, spas and saunas, sports facilities like tennis and paddle courts, kids play areas, BBQ areas, cinemas, and clubhouses. These kinds of amenities ensure a sustainable demand for your property investment at all times.
So here you are, having the pros and cons of investing in Dubai real estate market. From the pros of investing in a business hub with high demand for property with freehold ownership in a world-class community to overcoming the cons that actually have your best interest at heart.
So, in the end, what is the decision here and what should you do? Should you invest in Dubai property? Well, we sell real estate, so what do you think we will tell you? But rest assured we are in business and we are growing rapidly. Want to benefit from how exceptional we are at real estate than everybody else? Book your free consultation with Uno Real Estate international team today to figure out how you can get a piece of the cake of Dubai real estate success and wealth.
