5 common Dubai real estate investment myths debunked
In a recent report by Reidin / Global Capital Partners, Dubai investors have received a 120% return on their real estate assets in the past 10 years. This figure, when compared to other cities such as London (returning 75%) and New York (63%), shows properties in Dubai to be a better and more profitable investment.1
But, even with positive forecasts and such strong results, buyers can still be plagued with doubt. To ease such fears, we’ve debunked some common misconceptions investors have about real estate.
Myth #1: To be able to invest, you have to have a high income
Many big income earners have made a name for themselves in the real estate market. That has led others to think that a high salary is required to succeed in this scenario. However, what’s far more important is having a knack for investing smartly. Even if you have a modest salary, there’s always an option that will meet your situation and requirements.
Myth #2: People get lucky with their investments
While no-one can deny that a bit of luck can help, benefiting from real estate investment depends on a lot more than just your lucky stars. As an investor, you need to carry out extensive research to find the best property in the right location. After taking into account risks and buying a property at the right price, luck will have very little to do with you getting high returns.
Myth #3: The internet has ruled out the need for a real estate agent
With the advent of the internet, people have become more confident in every field. But just like you can’t count on Google to diagnose a medical problem, you can’t always rely on it to help you navigate your way through a real estate deal. It’s wise to have an experienced real estate agent representing your interests. They have the required expertise to translate property deals into a language that’s easier to understand.
Myth #4: Schools aren’t important
You might not be thinking of starting a family right now, but the neighbourhood you choose should affect your investment decision. Selecting one in close proximity to a school, work or parks are all signs of a good neighbourhood. These features will be useful whether you want to rent out your property, live in it or sell it at any point. For example, master developments such as AKOYA Oxygen and DAMAC Hills offer residents and investor’s facilities such as schools, nurseries, international golf courses, spas, supermarkets, banks, pharmacies and much more – attractive to buyers and tenants alike.
Myth #5: Real estate isn’t a good investment following the 2008 financial crisis
The key here is to focus on the word investment. Just like stocks and other ownership-type investments, real estate has its ups and downs. However, the shifts here are gradual and more predictable in comparison to other types of investment. If you research well, find a suitable property, and maintain it over time, you’ll more than likely be able to sell it with a decent profit. And this is still a good plan if you’re looking for that investment to be your home too.
Find out what type of investment is a good fit for your lifestyle and finances. Do your research; consider all the pros and cons and you can be confident you’ll make an informed decision that works for you.
Sources: 1; Arabian Business