Dubai rents increased dramatically in 2013, making property ownership in the city once again an attractive proposition. Many people are attracted to the chance of generating enormous gains from renting or flipping property in Dubai, but traditional buyers and investors who simply want a consistent, steady return are also a significant part of the market. Zero income tax, a convenient location, contemporary infrastructure, a low crime rate, and a cosmopolitan atmosphere are just a few of the numerous elements that have contributed to Dubai’s recent housing boom.
Before purchasing an investment property in Dubai, whether you are a local or a foreign buyer, you must examine a few crucial factors.
Reason to Buy:
Determine why you want to buy a property in Dubai before you start looking at properties. You must decide whether you want to buy a home for yourself or as an investment, as this will have a considerable impact on the type of property you can buy. If you plan to rent out the property, a one- or two-bedroom apartment is a far better option than a luxury villa because it will require significantly less upkeep and maintenance.
Keep a watch on market conditions and prices since the greatest time to buy an investment property is when mortgage interest rates are low and there is an oversupply, as this will allow buyers to haggle on prices.
Don’t compromise on the location. Investors should concentrate their efforts in places where rents are high, and demand is high. Spend some time in the area to ensure that you are satisfied with your home.
Get the Right Agent:
Do your homework to select a reputable developer, or utilize an established RERA-registered real estate if you’re buying on the secondary market. This will be extremely beneficial to you because you will gain access to years of market knowledge. If you’re buying off the plan from a developer, make it clear that you’ll need detailed project information before you buy. You will also require the services of a lawyer to assist you in the purchasing procedure.
Increased regulation means you’ll need to plan ahead of time for your finances. Knowing how much you can pay or borrow will give you more confidence and allow you to act fast when you find a home you want. If you’re a first-time investor, make sure you’ll be able to afford your mortgage payments for the first six months, as it may take some time to find a suitable tenant.