THE BASIC THINGS TO KNOW FOR REAL ESTATE INVESTMENT IN DUBAI

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The real estate sector represents 60% of the world’s leading resources and a big share of all national, common, and personal assets. That is why real estate investment deserves to be considered by any person or company looking for different classes of assets to invest part of the capital in them.

What do we mean by real estate?

When people hear about real estate, some think of land, houses, and other structures and structures. However, in this article, we will mention some other forms of real estate and some things that should be paid attention to while inspecting real estate in Dubai.

Some other types of real estate that can be invested in

Rental income

Dubai’s real estate sector offers one of the best rental returns globally, especially in new complexes that offer better profits than most major cities in the world.

Recent research has shown that buildings like Belgravia, owned by Ellington, offer an average selling price of 995 dirhams per square foot, 10.31% higher than that of Jumeirah Village Circle of 902 AED per square foot. The average rental price for Belgravia residences is 82.6 AED per square foot, which means that it is 28.66% higher than in Jumeirah Village Circle (64.2 AED per square foot). The rental yield in Belgravia is currently 8,914%, with an occupancy rate of 90%, which is 23.2% higher than in Jumeirah Village Circle, which has an occupancy rate of 73.05%.

In addition, Belgravia 2 provided an average sales price of AED 971.60 per square foot, which is 7.71% higher than Jumeirah Village Circle, which is AED 902 per square foot. The average rental price is AED 88.47 per square foot, which is 37% higher than Jumeirah Village Circle, AED 64.2 per square foot. While the occupancy rate in Belgravia 2 is 97% and 73.05% in Jumeirah Village Circle.

The study also found that average rental returns in Dubai are better than in major cities, despite the decline in prices and sales in recent years.

Increase the value of capital

Value increase is defined as the increase in the market value of a property compared to the purchase price. In general, buildings located in prime areas, such as Belgravia and Belgravia II, clearly show an increase in value. Such areas are the option of wealthy professionals who want to pay for their decisions.

What is Return on Capital (ROC)?

On the other hand, there is a return on capital when the investor gets a portion of his initial investment, as these payments are not considered income or capital gains from the project. Keep in mind that the return on capital reduces the correct cost base for the investor. Once the cost-per-share rule is adjusted to zero, any subsequent earnings are taxed based on a capital gain.

Now that we have explained some other forms of real estate that are worth considering when investing in real estate in Dubai, let’s look at some of the steps to follow to invest in real estate in Dubai:

Needs vs. desires

Before heading to real estate, you have to ask yourself: Do I have to buy land or a house? And make sure you get a strong, yes, in yourself. If you have any doubts, perhaps because you do not need it, consider renting it. And if you are nonetheless not sure whether you want to buy a home, you can also find other forms of the properties mentioned above.

Financial preparation

Budgeting is one of the most important steps when heading into the real estate sector. You can get mortgage financing if you need to and make sure it is approved in advance.

There’s no doubt going into real estate is an important decision, so make sure that you are emotionally and financially prepared. It is important to have a strong drive to buy and understand how to search for properties that meet your needs.

Get a good real estate consultant.

Once you set your targets, it will be time to choose a real estate agent who will work with you and understand how the real estate market in Dubai works. Please make sure to choose a real estate agent with caution, as the way they operate will greatly affect the final result.

Conclusion

Before employing the broker’s services, every real estate investor must verify that that broker is properly registered by verifying his identity and the registration certificate with the brokerage firm.

In the end, we can say that real estate has evolved beyond selling land and homes for personal use. So make sure that you take benefit of the other options mentioned above and do your due diligence before making a purchase.

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