Top 5 Dubai Investment Fundamentals

1. Community-Driven Market

London has postcodes, some cities have desirable streets, Dubai has communities. The area/community reputation is very important and drives demand – Marina, Palm, Downtown, Jumeirah Golf Estates, Dubai Hills etc, the area you buy in dictates both the tenant and investor demand so buy in an area that you think already has a strong reputation or will have one once the community completes.

2. Unique Selling Point(s)

In both your specific unit and the development itself, try to get something unique – stunning view, larger than average layout, larger than an average gym, easy-access, onsite amenities for the master community etc. Swimming pools, car parking spaces, and gyms are typical in Dubai so giving yourself the edge will differentiate your unit from the thousands of others out there and will dictate demand and minimise void periods.

3. Developer & Product Reputation

Similar to communities, brand profiles of developers are quite important, many of the buildings have large signs on them, investors learn what developers deliver a quality product and as such, whilst your potential tenant or guest may not pay great attention, in the future when you exit the next buyer will, brands such as Emaar, Sobha, Ellington hold high calibre reputations in the market which will maximise ROI on exit.

4. Short Let Market

The Dubai brand and popularity, in general, continues to attract visitors from all over the globe, government and private investment into the major attractions means Dubai is regularly in the headlines and the tourism market continues to thrive. As a result of this, the demand from websites such as Airbnb and Booking.com means that investors can profit by renting their properties on a short term basis, this drives up the rental yield % (ROI) and allows investors to earn significantly more than a normal 12 month let, it also allows for flexibility if the owner should ever wish to visit. Thus, when buying you should purchase a property that is likely to see strong demand in the serviced accommodation market.

5. The Numbers

Dubai is often thought of alongside skyscrapers, luxury villas and infinity swimming pools, so whilst it’s nice to purchase a property with the wow factor, it’s still, as ever, vital to ensure the financials of the investment are sound. What are the costs, when are fees due, what are the running costs, what are the forecast rents, likely capital growth, short let figures etc? A good quality real estate advisor will supply this data and ensure your real estate investment is a robust business decision for the medium to long term which maximises ROI safely rather than an emotional one based on flashy images and videos.

If you need help ensuring you’re making sound investment decisions in the real estate market, contact info@masarcapital.ae to discuss further.

Author:

Nick Hyland

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