Dubai had the highest number of real estate transactions in 12 years in 2021. It continues to grow, with more attractions taking place in the luxury real estate market. Dubai’s competitive property prices can be compared to major international hubs like London, Singapore, Paris, Hong Kong, and New York.

Currently, Dubai is one of the best cities to invest in property. Some of the reasons Dubai beats out every other city in the world are the lifestyle the residents lead, the year-round sunshine, the low crime rates, the connectivity to the rest of the world, and social diversity. Foreigners need not be intimidated by the prospect of moving to the city as all these factors make the city easy to acclimate and fall in love with.

With the amount of options available in the market, you may be spoiled for choice. It is important to know what you are looking for and things to avoid/mistakes you would make while choosing a property to invest in.

Deciding to invest in Dubai should depend on a comprehensive and detailed analysis and research; You should consider the risks, your capabilities, and the market status to have a well-structured plan for such an important step.

This is why BELMOND Real Estate is always here to help you make an informed decision. You can check out this great advice from one of our leading experts

Here is a list of factors to keep in mind when deciding to invest in Dubai: 

⁠Location: Choosing the location of the property wisely can make or break your investment! The popularity of the location and how accessible it is to attractions and essential destinations are crucial factors. 

For example, Dubai is known as a shopping hub on a global scale. Residents enjoy living close to areas with popular malls like Dubai Mall and Mall of the Emirates, Downtown Dubai, Al Barsha, Dubai Marina, and Palm Jumeirah are all communities home to grand malls in Dubai. 

In addition, according to Google Trends, Nad Al Sheba, Oud Metha, Jumeirah Lake Towers, and Dubai Hills are among the highly searched communities; this makes them good options to consider. 

Short-term vs long-term rentals: Some properties will perform better on a short-term lease such as apartments in Downtown Dubai, Palm Jumeirah, Dubai Marina, and JBR; alternatively, villas in Dubai Hills, Jumeirah Park, and JVT provide better yield on standard leases. 

Service charges and property management fees: They differ from one property to another and should be taken into consideration beforehand.  

Off-plan vs Ready-to-move 

You have two choices when it comes to investing in a property in Dubai, either off-plan unit or a ready-to-move one. The off-plan units are properties that are still under construction and yet to be delivered. On the other hand, the ready-to-move units are already completed and you can use them immediately. 

Pros of Buying Off-plan Properties

• ⁠  ⁠Prices of under-construction properties are usually less than those already available
• ⁠  ⁠Reputable developers build communities that gain significant value as they mature
• ⁠  ⁠Down payments are often more affordable 
• ⁠  ⁠Attractive interest free payment plans are available which enable investors to build their portfolio according to their cash flow capacity

You can have a look at the various off-plan properties we offer to choose the ideal one for you.

Cons of Buying Off-plan Properties

• ⁠  ⁠Any changes in the market can be expected and may affect the original value of the property 
• ⁠  ⁠Off-plan projects have the potential risk of being cancelled or delayed; that’s why research on the developer is crucial.

Pros of Ready-to-move Properties

• ⁠  ⁠The price you’re offered is according to current market conditions 
• ⁠  ⁠The availability of seeing it in reality to decide if it’s a suitable option or not is preferable to some buyers
• ⁠  ⁠Ready properties will always have the advantage of generating rental yield immediately post purchase

Cons of Ready-to-move Properties

• ⁠  ⁠Higher upfront investment; this includes the down payment
• ⁠  ⁠Sometimes there isn’t flexibility in the payment plan 

What Is Freehold and Leasehold Ownership?

Don’t let real estate jargon overwhelm you! These terms simply refer to the type of ownership you are offered. Check out the definitions below:

• Freehold: Full ownership and legal rights to use, lease, or sell the property are transferred to the buyer.

• Leasehold: The buyer does not have full ownership of the property but holds it for a limited period (usually 99 years, though this can be shortened or extended).

What Are the Best Areas to Invest in Dubai?

There’s always the question of where to invest in Dubai real estate, an emirate that doesn’t stop growing; this means your investment benefit can differs between now and in the future with such constant changes in the market and demand.

Why Dubai is a safe place for your investment?

Off-plan properties are highly favored in a city like Dubai, which has a plethora of luxury and high-end real estate gems.

The scope of profitability and affordability of such properties attract people to invest in them, but it is quite understandable if someone is skeptical about investing in a property that is yet to be completed.

Thankfully, with the presence of an escrow account, you can rest assured that your investment is secured and safe. This is because once you deposit your money in an escrow account, the sellers will only receive it when they complete the project as per the agreement or hand it over to you.

Escrow accounts have played a massive role in enhancing the confidence of investors as they layer their investment with water-tight security, ensuring fair play on the part of all the parties involved.

You don’t have to navigate the market alone – we’d love to support you on this journey.

Let’s connect and make your next move a success!