The Complete Guide to Real Estate Investment in Dubai

Most people are interested in real estate investment because it’s satisfying and lucrative. But how do you go about owning an investment property in Dubai? Read on for more. 

The Ultimate Guide to Real Estate Investment in Dubai

Real estate is among the five basic asset classes that every investor must consider including in their portfolio. It provides unique cash flow, profitability, liquidity, diversification, and tax benefits. Real estate investments cover a broad group of operating, investing, and financial activities revolving around making money from cash flows or property tied to tangible property. There are various ways you can make money off real estate, but it will take time before it starts to pay off, so experts suggest that people start investing even in their early twenties.

Dubai market is a recognized long-term investment, and since 2002, UAE’s most populated city is now a hotspot for property investors. But before you commit to investing in this beautiful city, it’s advisable to research and understand more about the why, how, where, and ways to make real estate investment work for you in Dubai. This article discusses extensively how and what you need to know before investing in Dubai . 

Why You Should Make Real Estate Investment in Dubai

Dubai is among the most popular business and tourist destinations globally. It offers an incredible multi-cultural lifestyle and world-class attractions that can’t be found anywhere else in the world. It is home to the globe’s famous skyline and premium property spots, such as Business Bay and Dubailand, and has been ranked as the city with the best quality of life and infrastructure in the Middle East. And even with the influx of tourists who throng the region every day, it remains one of the safest cities worldwide.

The city attracts talent from all the parts of the world and is home to many multinational Fortune 500 companies positioned strategically to serve markets across Africa, Asia, the Middle East, Europe, and America. With such unique features, it’s no wonder that the real estate sector in the region is thriving. Even after Covid-19 affected the region significantly due to travel restrictions, Dubai is now bouncing back, and property prices are increasing. So, you can’t go wrong with investing in the region. 

How You Can Own Dubai Investment Property

In Dubai, residential investments make rental returns for investors, and they’re quite the popular choice. The region makes tens of thousands of real estate transactions (residential) worth billions of dirhams annually. Another outlet for investing is in the hotel property market. The investor purchases a hotel room, which guests occupy, and the investor gets regular rental income from his investment. Buying hotel property is viewed as a stable investment choice because the tourism industry has bounced back after the pandemic and will continue to hold a more significant share in the UAE’s GDP every year. Also, hotel investment in the region is a fully managed asset class. So, the hotel management company will deal with maintaining, advertising, and other day-to-day matters. But through which ways do you own these properties? Here is how: 

• You can buy a property either for ownership or to rent. Your home will appreciate in value while the rented-out property will give you monthly returns. 
• You can buy properties and then flip them and resell them. You can either buy a property off-plan and sell it once it’s complete or renovate an old property. 
• You can invest in a crowdfunding platform such as MAISOUR , which lets you own property by investing as little as $500. 
• You can own property by investing in Real Estate Limited Partnerships (RELPs) or Real Estate Investment Trusts (REITs). 

Best Places for Real Estate Investment in Dubai

Among the primary factors to consider while choosing a Dubai investment property is location, as it determines the amenities close by and the value. Investors prefer to buy a Dubai property close to landmarks, such as Business Bay or Dubai Marina. Some of the best locations you can buy in Dubai include business hubs, nearby offices, or tourist spots. Here are some regions to look out for: 

• The Dubai Marina– This thriving business center has been consistently ranked as among the top searched properties in the region. 
• Dubai Marina Walk– It’s home to the globe’s largest mall and tallest tower, with internationally renowned landmarks. You can invest in Downtown Dubai or Business Bay.
• Barsha Heights– This area is home to Fortune 500 and multinational companies, such as Microsoft, CNN, BBC World, CNBC, Reuters, HP, and more. It’s also home to residential buildings and hotel collections suitable for investors. 
• Dubai Sports City– the city was launched two decades ago and hosts academies in cricket, golf, hockey, swimming, football, rugby, etc. 

These are just a few places, but there are other places where you can invest in Dubai (link). 

The Takeaway

Dubai is a hotspot for real estate investors looking to diversify their portfolios and increase income. However, it’s advisable to be strategic about investing in real estate in Dubai. Before taking the plunge, you’ll need to know why the region is excellent for real estate and how and where you can invest in. So, whether you want to buy property for renting or homeownership, invest in a crowdfunding platform, or flip a property in any of the above prime Dubai locations, you can now make a well-informed decision.