Investing in Dubai Real Estate
Dubai is one of the most famous cities when it comes to real estate investment. Many investors around the world find Dubai as an attractive investment opportunity due to its strategic location, infrastructure, regulations and security. In addition, it has a high rental income compared to other cities in the world, which makes it a perfect destination for anyone seeking to invest in the real estate market.
Here are some of the best ways to invest in Dubai real estate.
1- Buying property to rent
One of the most profitable ways for real estate investment is to buy and rent residential units, especially if the property is located in promising areas, which you will find in many places in Dubai. Such investment will assure you have a high return on investment.
The benefit of this method is that it is considered to be a low risk investment and has a promising high rental yield.
There are many great places for long term investments, where you can guarantee high returns, due to the fact that these places are a targeted destination for both residents and tourists, who are looking for world-class amenities, facilities and entertainment.
|Dubai sport city||6.91%|
|Jumeirah Lake Towers||6.62%|
|Jumeirah Village Circle||6.22%|
2- Buy a property for sale
Another great profitable opportunity for real estate investment in Dubai is buying property then selling it when the property prices go up. Investors can take advantage of price decline in some periods, where they can enter the real estate market and buy a property, and wait until prices rise again to re-sell it, and achieve a high investment return. Many investors choose this method, due to the fact that real estate in Dubai is a continuously a growing sector, where demand for properties is flourishing each year.
3- Buy, repair, and sell
This method is one of the best ways to invest in real estate in Dubai, as you can seize the opportunity to buy a property that needs to be repaired at a low price. You will be required to pay an additional minor cost to achieve the property is in a better condition, and after finishing it you can sell it for a higher price than the one you paid when purchasing it, which will surely guarantee you a great return on investment.
4- Building residential property for sale
One of the best ways to go about real estate investment in Dubai is the development of residential units, whether a building, villa, houses…etc, and then offering them for sale, either separately or by selling the entire project. Obviously, this method requires a higher investment, but it’s on the other hand highly profitable.
Many investors seek to invest in residential properties, because Dubai has one of the highest population growth rates per year, and it’s also a destination for many people around the world who are looking to settle in a safe, stable, growing city. All those reasons are driving demand and prices for residential properties to increase year by year.
5- Building commercial properties for renting
Real estate investment in Dubai has many types, whether residential like apartments, villas, townhouse and penthouse or commercial like offices, stores and warehouses. This method is perfect for investment for commercial purposes, especially when it comes to Dubai, which is considered a business hub for many companies and corporations around the world. In this method you can build a commercial building that includes shops, stores and offices, and then rent the property units to business owners. This will guarantee a high return on investment, due to the increasing demand on commercial properties.
6- Building commercial properties for sell
As the method mentioned above, you can do the same thing but instead of renting the units you can sell them. In this case investors can build a commercial property that contains offices, stores, shops…etc, then aim to sell them at a higher price than the real cost of construction. The benefits of this type are that it guarantees high profits, especially as mentioned earlier that Dubai is considered a perfect business hub for a lot of companies and entrepreneurs.
7- Investing in Land
The reason why this method is considered to be a highly profitable one is that prices of land tend to increase gradually year after year, due to the increasing demand for building properties for both residential and commercial purposes.
In that way you can buy a piece of land in an upcoming area, and then sell it when the prices go up. Many investors choose this method, as the Dubai Land department gives foriegn investors the possibility to buy and sell land, and on other hand, this way guarantees a large return on investment, due to the increasing demand and prices.