Investing in luxury real estate? Don’t ignore these factors

February 26, 2017

Planning to invest your money in an exclusive, big city home? If yes, then you must keep a few things in mind. Generally, buyers shopping for luxury homes look for tantalising amenities like outdoor showers, electronic systems, parks, spas and state-of-the-art fitness centres. While, these are certainly attributes of a luxury property, there are other important factors that shouldn’t be ignored. Listed below are the points that, as a high-end buyer, you need to keep in mind to ensure you are spending their time and money wisely.  
 

What do you want to achieve?

 When looking for a luxury apartment / property, you should identify your short-term as well as long-term investment goals. Identifying these well in advance gives you the assurance of a sound financial future and reduces any chances of trouble later.

Pick a good place to invest

Many regional and international investors have put their faith in the Dubai real estate market, as the it offers such diversified investment opportunities. Figures released by the Dubai Land Department (DLD) showed that in 2016, Saudi Arabian investors made transactions worth $2.17 billion. This was followed by Qatari and Kuwaiti investors, who each made deals averaging $543.7 million, showing how regional buyers have chosen Dubai for their realty investments .1

It’s all about reputation

The area and the reputation of the real estate developer are important points to consider when buying luxury property. An area (or master community) with a good reputation will appreciate in value, and thus attract more buyers. Good areas are also draw more tenants – especially if the community has all the required amenities.

Choose the right market to invest in

Another thing to keep in mind is the market for your investment. Take into account factors like the cost of living, sales prices of comparable homes, the job market, median household incomes and the overall economic outlook. 

According to the DLD, in the first 45 days of 2017, Dubai real estate transactions reached AED 42 billion. This figure represents nearly half of all investments in 2016 (91 billion), reflecting the positive growth of the real estate sector in Dubai.2

[Related: 6 habits successful investors don’t want you to know]

Architectural uniqueness

It goes without saying that good architecture retains its value for a long period of time. Go for architects with an excellent track record, known for designing beautiful yet practical buildings. Research the materials used in construction, artistic components and unusual details to get the most from your investment. If you’re planning to make long-term investment, consider how the building will look after a few decades.

Prime residential properties in gulf cities like Dubai continue to outperform other real estate markets because of their architectural uniqueness and superior design. For example, DAMAC Properties continues to raise the bar in luxury realty standards by introducing internationally renowned brands such as Fendi Casa, Versace Home, Bugatti and Paramount Hotels & Resorts.

So, if you’re planning to buy some luxury real estate, take all of these pointers into account so your property is a true investment that gives you the best potential returns.

Sources: 1: MeConstructionNews 2: Khaleej Times

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