The real estate market in Dubai is experiencing rapid growth, which is beneficial not only for investors but also for homebuyers. Both rents and the rates of return on investments made in real estate are increasing at a rapid pace. The first quarter of 2022 set a new record for sales volume in Dubai’s real estate market, which is evidence of the market’s exceptional performance.
Mr. Hamad Alwazzan, an experienced investor and expert in the Dubai real estate market, shares his advice on how to maximize your return on real estate investments in the emirate.
“Smart Investment, Good Investment” – Hamad Al Wazzan
To put it another way, the time to make investments in the market is now. However, this does not imply that any investor can anticipate a profitable return on their investment in the real estate market in Dubai because of the aforementioned factors. Making a real estate investment that will yield a profit during a market boom requires careful planning and preparation. Before you make any investments in Dubai’s real estate market, Mr. Hamad Al Wazzan has compiled a list of important steps for you to take that will be of assistance to you in this endeavor. Let’s spend some time getting to know them better, shall we?
One, Know Your Market.
It is going to be a big mistake for you to make an investment in real estate without understanding the market and knowing where it’s headed, what’s trending, what the future looks like, etc., and this mistake has the potential to cost you a lot of money. This mistake has the potential to cost you a lot of money. As a result, you ought to make it a top priority to educate yourself as thoroughly as you can on the present state of the market and the sentiments that surround it. In this regard, engaging the services of a consultant or looking for guidance on a reputable property portal in Dubai can be of tremendous assistance.
On that, Mr. Hamad Al Wazzan says: “A thorough market research and understanding is crucial for a successful first step”.
Two, Learn the Value of Various Properties.
The real estate market in Dubai currently offers a diverse selection of available options. When it comes to the cost, the return on investment, and even the outward appearance, they are not all the same. It is important to become familiar with both the properties and their value before making any investments in the real estate market.
In Dubai, real estate can be purchased in one of two primary states: “ready” or “off-plan.” As the name suggests, “ready” properties have undergone all necessary preparations so that the new owner can move in right away. On the other hand, homes purchased off-plan have not yet reached the stage of completion. As a result of this, the prices of these homes are significantly lower than the prices of completed homes.
Recent data indicates that the secondary (ready) market accounted for roughly 58% of all sales in the first quarter of 2022. Mr. Hamad Al Wazzan has mentioned the market shares nowadays: “It’s clear that it’s best to invest in the secondary market right now, as it accounts for the vast majority of the real estate sector”. However, those on a tighter budget will find more favorable terms in the primary market, as prices there tend to be lower.
Structure and layout considerations allow for further subdivision of these properties into distinct classes. For instance, Dubai’s real estate market includes a wide variety of villas, apartments, townhouses, penthouses, and duplexes. Investors can also buy plots of land and another real estate.
In recent years, there has been an increase in prices across the board, but in particular for villas. It is anticipated that the rapid growth will continue unabated in the years to come. Investing in a villa in Dubai is an excellent choice if you want to see a healthy return on the money you spend there. In addition to this, you can accumulate a steady stream of passive income by collecting rent.
However, until just recently, apartments were among the most sought-after real estate. But in comparison to villas, their price and demand growth slowed significantly, especially in the COVID and post-COVID contexts. Prices have increased by almost double digits in recent years, reflecting a slight but steady uptick in demand.
Three, Pick Your Spot Wisely.
Location is of the utmost significance whenever one is thinking about making an investment in real estate. The initial investment, the return, and the potential outcomes are all impacted by it. Therefore, you should exercise caution when selecting the neighborhood in which to make your home. It is important to do extensive research on the surrounding area, property prices, and planned and ongoing development before settling on a community. This should be done before making a decision. These kinds of insights will point you in the direction of Dubai’s real estate market neighborhoods that offer the most potential for profit.
Regardless of how far away from the city center the neighborhood is, it is still a good idea to make an investment in real estate there, provided that the area is slated to be the location of multiple planned developments. Take the example of Dubai South as an illustration. The region’s growth and demand have significantly increased ever since Dubai was selected to host Expo 2020. The value of the property will only go up as a result of the addition of District 2020. Already, investors are displaying a great deal of excitement regarding this emerging pattern.
Four, Invest in Future-Forward Projects.
New residential communities in today’s forward-thinking cities, such as Dubai, are constructed in a manner that is less harmful to the natural environment and makes better use of available resources than ever before. The most prominent builders of today use environmentally friendly building practices in their projects in order to reduce the negative effects their work has on the environment and make better use of limited resources. It is highly likely that in the future, both the demand for and the value of endeavors along these lines will increase.
“If you’re seeking to make a real estate investment that pays off in the long run, it’s wise to select a project that can withstand changes in the market”, said Mr. Hamad Al Wazzan.
In this regard, new construction has a distinct advantage over existing properties because its owners can make changes that will stand up to a variety of conditions and maintain the value of their property for decades to come.
“Buying Property in Dubai Is A Rewarding Venture” – Hamad AlWazzan
In essence, Dubai is a bona fide gold mine for those individuals who are interested in making an investment in the real estate market. To make the most of the opportunity to put money into this growing market, one must, however, be an astute investor in order to maximize their profit potential. Before diving headfirst into the real estate market, as Mr. Hamad Al Wazzan explains in this article, it’s important to get a firm grasp on a number of factors and study a variety of criteria that would guarantee a good return on investment.
These four steps are applicable not only to Dubai but also to any other country that has successfully developed its economy and is prepared for the future.