Why Dubai real estate investment experts are bullish about the future

July 19, 2016

The real estate sector in Dubai may have faced a downfall in the past several years as an effect of the global recession. But the City of Gold has since turned its fortunes around and is geared toward more growth in the coming quarters. And when it comes to making a Dubai investment, real estate is seen as one of the most favourable markets to place your money in. 

One of the top two biggest real estate developers in the country, DAMAC Properties, has described the Dubai property market as attractive, stable, promising and resilient. Thanks to the continuous economic progress experienced in the region and the significant growth among its security, tourism and infrastructure sectors, those who are looking to invest in real estate can be confident that they’re on the right track. 

In a report about the residential real estate market in Dubai, KPMG Consulting offers a similar outlook, saying that while this year may see a few short-term challenges, the next year is definitely ripe for an upturn. If you’re one of many people interested in making a property investment in Dubai, the following factors may help you make a better decision:

Regulations are advantageous for business and real estate. Fairly recent UAE laws, as well as bank and land regulations, offer added protection and better transparency for investors and make the market a safer and more stable environment. 

The UAE economy has lost its total dependence on oil. The increasing diversification of the Dubai economy is allowing other sectors to expand and grow as well. And two of the areas benefitting from this scenario are real estate and infrastructure, with an astounding number of infrastructure projects underway. 

Real estate rental investments are seeing more demand. If you’re planning to profit from your property through rentals, you’ll be glad to know that you’re up for impressive returns. Thanks to the improved job market, people are more confident and able to rent prime real estate properties. 

A brighter, more exciting future for Dubai is ahead. One of the developments that keeps the energy and vibe in Dubai positive and uplifting is Expo 2020. For the six months the Expo will run for, more than 25 million visitors from all over the world will be expected in the region, which translates to unlimited opportunities in real estate investments. 

Keep in mind, though, that just like any other investment, the Dubai property market has its own risks and rewards. Despite the great outlook, it still makes sense to be prudent and deal only with reputable real estate developers and experts. 

A leading real estate company in the UAE offers tips on choosing a luxury property

Investing in property can be one of the best decisions you make – or the costliest. Whether you’re buying it as your private residence or transforming it into a profitable rental unit, many factors should be considered before making the purchase. It’s absolutely critical to take the time to plan and research the market so you can make an informed decision in the end.

The real estate market is a rewarding investment class, especially now that the industry is gearing for more growth. A property is especially valuable for building a diverse portfolio – one of the keys to wealthbuilding – when you approach it with a long-term perspective. In the UAE today, the most attractive types of properties yielding the best returns include luxury units, high-rises, fashion condominiums, serviced villas, branded apartments and developments designed for retail and commercial use. Most of these properties are built and ready to move into – making them an extremely convenient investment. 

With all these impressive choices available, how do you know which one is the right one for you? Here are some key considerations to keep top of mind:

Deal only with a trusted developer with a stellar track record. Your choice of developer can be the single most impactful factor that will determine the success (or failure) of your decision. When you’re looking into premium properties, go straight to a real estate company in the UAE that has a proven vision for luxury living, superior taste in building materials and a commitment to partnering with the finest employees, designers, architects and contractors. After all, luxury means no compromises. 

Zoom into the details. When you’re a high-end buyer, it’s expected that the features and amenities will be above standard. Does it have built-in laundry facilities or will cleaning and laundry services be provided? Is the gym within walking distance, or can you do yoga in a private, sunlit lounge? Is the closet space big enough? Part of the price you’re paying is to afford you a luxurious life so make sure to check all the details ensuring your daily comfort and productivity. 

Look beyond the address. They say location is important – more so when you’re interested in luxury living. In this case, you don’t settle for a property merely because it’s in a prime location. Remember that when buying a luxury home, you’re also buying into a lifestyle. So beyond the zip code, look into other elements of the location, such as who your neighbours are, what type of future developments are planned for the area and what the overall culture, vibe and scene in the district is like. 

Luxury Real Estate: The Best Investment in Dubai

Investing in real estate has long been one of the top options for people seeking a reliable vehicle for growing their funds over the long term. Among high-net worth individuals, however, this method of investing is taken up a notch — rather than filling their portfolio with standard properties, the goal is to acquire luxury homes as hard assets.

What is luxury real estate?

There is no single size, style or design to indicate that a piece of property is a luxury home. In general, such properties would be larger than average and unique in design.

Typically, the luxury property will offer the potential buyer security, exclusivity and privacy. It may come with a customised design or architecture to suit the buyer. It's not uncommon to find elegant finishes like pools and spas, exterior fireplaces, ponds and fountains, heated floors or driveways, top-of-the-line security, feature lighting, and more.

A piece of luxury property comes with a targeted lifestyle and spectacular nature views, a much-coveted address or excellent proximity to other luxury properties or locations help to achieve that.

Luxury in Dubai

If you're looking for the best investment in Dubai, luxury real estate would be it. Get in touch with the right property developer and you will find many of Dubai's high-end residential offerings as well as other attractive options like branded real estate and serviced hotel apartments.

How can you benefit from such an investment?

You can flip properties for profit.

If you've found an existing luxury property, you have the option of remodelling and reselling it for a nice profit. This can be a more effective way of reaching your financial goals than building a new house from the ground up.

You can transform a luxury home into a coveted vacation rental.

A top tourist destination like Dubai is the perfect place to acquire properties that can be rented out. Other advantages of owning a luxury rental home are asset appreciation, important networking opportunities and lucrative opportunities during peak seasons.

Properties in excellent locations are highly coveted.

Luxurious hotel and residential apartments in towering developments, houses within exclusive golf communities and branded villas in prime locations with stunning views are the height of opulence. Should you plan to move on in the future, your luxury property in Dubai is sure to fetch a good price from investors seeking the best quality and lifestyle.