Dubai continues to expand. There is something for everyone to do. These preferences include hobbies, sports, fashion, or Dubai’s real estate. Properties are booming in Dubai because of its expansive economy. Numerous first-time investors are housing the City of Gold. However, they are unsure where to purchase properties. If you are one of them, welcome to the discussion.
Let’s begin.
Which components to consider when purchasing real estate in 2022?
Property has twofold uses—business or private. Yet, its primary shape is an investment. You can keep it until you need to sell it or transfer it to your beneficiaries. However, it is pivotal you understand the factors that make a real estate investment success. Real estate software development in Dubai presents the following considerations one must analyze before purchasing property in Dubai in 2022
Facilities in the proximity
Investors must understand the absence of amenities means the hiking-up cost after the purchase. To make the structure habitable, the property owners will have to add these amenities after buying the property. However, a building that already comes with amenities will save cost and time. Therefore, the presence of transport, schools, laundry, and other recreational features carry immense influence. Other features include classic light fixtures, flooring, pools, and therapeutic gardens.
Nearby gyms are essential to the athletes in Dubai. Since the city hosts tourists, facilities such as a volleyball court, baseball court, and tennis will keep them engaged. It allows the investors to diversify, assuming they wish for a higher rate of return.
Facilities also include hospitals and shopping centers. The largest mall in the world is in Dubai, with global, lux brands that have a dedicated customer base.
Location or spot
The second-factor investors must think about is where to purchase the property. Teleporting large structures is not yet possible. Therefore, business tycoons usually prefer to buy where they foresee the value would appreciate. Furthermore, purchasing nearby or next to previously owned real estate ensures cementing your presence in the market. However, to target the customer segmentation:
- For family homes surrounded by clinics and schools, invest in Dubai Hills, MBR, and Al Barari.
- However, to appeal to professionals and career-driven individuals, the tycoons can study JLT and Dubai Marina. These localities accommodate public transportation and outdoor areas. Moreover, you will also discover an engage late nightlife. The spots are filled with bars and restaurants that appeal to the bachelor’s lifestyle.
Surface area
Before choosing which property to purchase, consider its long and short-term implications. Furthermore, also study the floor plan against the intended buyer. A family household will grow over the years and require a dynamic floor plan. Such properties must have ample square footage for expansion.
Furthermore, another cost-effective strategy is expanding the property you already own. It’s certainly cheaper than purchasing a new property with a larger surface area that will be pretty heavy on the wallet.
Regardless of the location, never forget to assess the property’s surface area you intend to purchase. Browse the prospects of backyard seating. You could even build a custom gazebo in the right setting!
Price
No doubt price and surface area are interconnected. The larger the property’s surface area, the higher the price. Therefore, it is wise to stay within budget. Though you may think purchasing overbudget is a brilliant idea, it is actually not. Extending the funding unnecessarily increases the liability and potential chances of going bankrupt if the investor cannot pay back.
You can consult with a property agent who will assess the properties against the budget. Furthermore, ensure they visit alongside when browsing for properties. Their expert eyes will identify defects you cannot.
Standard of living
As with any other city, the cost of living varies from locale to locale. Though there are universal price ceilings for food, fuel, and rent, expenses vary in exclusive communities. These are private areas closed off to public success. Therefore, if you wish to invest in such sites, ensure sufficient demand to sell it at a profit.
Property related procedures
Properties in Dubai can be bought from a private individual or a real estate developer. When you purchase from a private agent, he will ask for a 10 percent deposit to lock down the property. It’s a confirmation you will make the remaining payment before the title transfers.
However, the percentage may vary anywhere between 10 to 25 percent. The practice is very common under the Memorandum of Understanding signed between the agent and the investor. The contract mentions terms, limitations, and responsibilities each party must adhere to. It commits both parties to the real estate. The purchaser can purchase the property from anywhere in the world as long as the transaction clears.
However, when a property involves a re-sale, the owner must be physically present to execute the sale. However, beneficiaries or representatives can carry forward the deal if they have a Power of Attorney with them.
After the MoU is signed and the earnest money has exchanged hands, the transaction can take two days to two months to complete. Its execution factors transactional complexities, financial structure, nature of the transaction, business and public holidays, and other macro-economic factors.
How to ensure sustainable ROI against Dubai properties?
The investors will purchase real estate to resell at a higher markup. Therefore, it is wise to implement strategies to ensure such a return. Thus, avoiding tanking the investment.
- Investors can opt for purchasing small-sized apartments such as a studio or one-bedroom. Ensure they are present in a public-concentrated area with beaches, shopping malls, and other hospitals. These will sell quickly to foreign laborers who wish to feel at home.
- Smaller apartments will also sell faster since they offer better value. Due to the strong currency, it will take longer to save for a larger house than a small flat.
Contact GBKSOFT & Altamira
GBKSOFT & Altamira are a software house that promotes clear and transparent dialogues with their clients. We believe in efficient communication and the best practices that provide innovative solutions to modern problems. GBKSOFT generates business-focused solutions that align with internal and core values after studying numerous parameters presented by the clients.