Dubai Property Investment
How to buy Dubai properties below the market price?
There is a limited land space in Dubai. Therefore Dubai property investment is one of the best real estate investment options available in the current market. However, whether it is for investment or for you to live you MUST buy in the right area and right type of property to maximize the profits.
The single most important thing in Dubai property investment is to get the service of a very good Real Estate Agent who gets the best deals and who knows the “inside secrets”. The agent should understand your requirement and provide you multiple options of suitable properties to your budget. Of course a property which will give you the maximum return for your investment. Also the agent must directly dealing with the property developer in Dubai.
The other most important point is to act fast when they present you the right deal. You know why? Dubai property prices are changing rapidly. You will not get today's price tomorrow. It is so volatile.
Dubai real estate Histories
The Dubai real estate investment property market boom started around 2001-2002 periods. Prior to that Dubai government didn’t want non-citizens to “own” Dubai properties. Therefore Dubai property investment did not exist for non-citizens.
However, Dubai government introduced new regulations for investors all around the world to invest in Dubai properties. Today Dubai property investment has become the “hot topic” among property investors.
Experienced investors are not suffering too badly if they have been wise and did not put all their eggs in one basket. These investors have been impacted by credit crunch, but still intend to buy properties in property hot spots, especially in foreign markets.
Dubai residents have always bought property in other countries at a fraction of what it would cost for a similar place in the Dubai.
But with prices falling in holiday markets and home, signs earlier in the year were pointing to a huge number of British nationals that are interested in buying abroad as far as Philippines and Thailand.
However, now again they have to re-consider their options because of high fuel costs for the airlines. Getting to these good placesin UAE are costing much more than a year ago. So they are more and more considering property hot spots that their economy is fuelled by their own economies.
Changes for Buy to Let investor
There has been plenty of headlines during the last few months that would put off any property investor with the slightest fear of risk. Having a sensible approach and avoiding panic seems to be the best way to deal with them. Investors in buy-to-let in the Dubai are noticing that for the first time they can risk to increase rents while demand is out there. But there are concerns that tenants, who are cash strapped because of rising fuel and food costs, just won't pay.
Professional investors are starting to see buying opportunities in that most bombed-out of areas – property. Dubai house prices have tumbled more than 11% to an average £177,351 since last month peak, based on the Halifax index, after a decade of booming prices that added 145% to the average home’s value.
However, Investors here in Dubai are not cash rich right now. That is a wise move for anyone not wanting to put all eggs in one basket.
Selecting the best investment properties in Dubai?
This is the tricky area in Dubai property investment. The best investment property should match with your budget. Also you should be able to find a tenant fast. Here are some guidelines to decide the best area and type of property for you. Click here to see some of Dubai property photos.
First lets look at types of people who are currently renting. Most of the tenants are expatriates who are working in Dubai. They have various incomes. The income decides what type of a property they are going to rent.
Majority of expatriates earns around 1000 GBP - 5,000 GBP a month. Normally they rent one-bedroom apartments. In my view this is the type of property you will be able to find a tenant very quickly. However, you should buy a property in a location where they can afford to pay the rent and in an area where most of the offices are located.
The second category is mid to high-income earners who are earning around $7000 - $10000 a month. These tenants are usually small in number, however are willing to pay a higher rent. There is a big chance that these types of people are receiving a rent allowance from the employer.
They will be looking for semi-luxury apartments with facilities such as swimming pools, gym, tennis courts etc. If this is your target market then you will definitely receive much higher rent. The drawback of this type is the small market.
The third category is ultra rich and famous people around the world who are willing to “throw” money. If you want to cater for this category, then search for luxury apartments, villas and properties in Dubai islands. These people will not rent.
They have money to pay cash and buy. So your only option is to buy a property in a unique location and sell it for a profit. Buying investment properties for this category can be a very high investment. However, the return will be equally high.