Dubai Investment : 4 Ways of Property Investment in UAE in 2022

Dubai Investment, We’ve all heard these statements, whether on media, from financial advisors, friends, and our loved ones.

But it’s not that straightforward. Most people tend to shy away from real estate investment because they likely think of a bank, mortgage, and the need for high capital to get started.

 And if you’ve ever had a landlord, you likely don’t dream of being one. Dealing with rude tenants and answering calls about blocked toilets and monster bugs doesn’t sound like the most glamorous job.

While you need capital to get started, it doesn’t have to be complicated. Besides, Dubai investment in real estate isn’t exclusive to the traditional way anymore.

When done right, Dubai investment in real estate can be lucrative. It can help diversify your current investment portfolio and be a much-needed extra income stream that brings in rental returns.

And if you can’t stand the thought of having to show up at your tenants’ every beck and call, don’t worry. Most of the best real estate investments don’t require you to do all of the heavy lifting.

 The issue is that many new investors don’t know how or where to invest in the UAE real estate market, ranging from low to high maintenance.

We’re here to help you learn about property investment in Dubai in 4 simple ways:

OPTION 1: Rental Property Investment in Dubai

If done properly, property investment in Dubai is generally viewed as a smart investment. You can make decent profits by researching extensively and working with the relevant property advisor. While the market goes through cycles and prices rise and lower, it’s been historically proven that people who hold their properties for the long haul enjoy much bigger capital gains. Also, you can rent out properties in Dubai , earning you a general net rental income of 5 to 7%. However, buying property in Dubai or anywhere else requires substantial capital for upfront maintenance costs and covering vacant months.

OPTION 2: Real Estate Investment Groups (REIGs)

Real estate investment groups (REIGs) are similar to small mutual funds that acquire rental properties. It’s another type of Dubai investment in real estate. Such a group will build or buy a set of condos or apartment blocks and then let investors buy them through their company, therefore becoming members. REIGs are suitable for people interested in owning rental real estate without the stresses of running it. However, investing in these groups requires access to financing and a capital cushion.

As an investor, you can own either one or several units. Still, the company managing the investment group collectively operates all the units, deals with maintenance, interviewing potential tenants, and advertising vacancies. For handling these management tasks, an investor has to part with a certain percentage of the monthly rent.

OPTION 3: Dubai Investment In Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts let you invest in UAE real estate without the traditional property transaction. Like mutual funds, these companies use investor money to acquire and operate commercial real estate, including retail spaces, office buildings, hotels, apartments, or other high-potential revenue-generating properties.

REITs usually pay high dividends, making them a common retirement property investment in Dubai .

There are various REIT Funds in the UAE, including:

• Al Mal Capital REITs
• Emirates REIT
• Emirates NBD REITs

They can be a good investment but can also be complex and varied. Some trade on the stock exchange, while some aren’t publicly traded. So, make sure to check those listed on the Dubai Nasdaq stock market exchange before investing. Also, you have to open a brokerage account in Dubai Financial Market to access the REITs and all other stocks in Dubai’s stock market.

OPTION 4: Real Estate Crowdfunding

Crowdfunding is where an online platform pools money from a group of investors to purchase a property that investors choose. Next, the company rents out the property and shares the rental income among investors, depending on their capital contribution. Also, the company can sell the property and share the profits on a similar basis.

Crowdfunding isn’t as capital-intensive as what’s expected when buying property in Dubai outright. A real estate crowdfunding company in Dubai like Maisour lets you invest with as little as 2,000 AED. Besides, you can invest in the UAE in either one or multiple projects, and there’s no geographical limitation to where you can invest. However, they’re usually illiquid due to lockup periods, and you’re expected to part with a management fee. Ready to learn more about real estate crowdfunding in Dubai? Let Maisour show you how it’s done.

Why Investment in UAE Real Estate Is Good

The foreign property ownership decree issued in 2002, which lets non-UAE citizens buy property in the city, led to a big construction boom, attracting global investors into Dubai’s property market.

Population growth and years of infrastructure have encouraged market growth, with Dubai’s property market outperforming most international property markets, including London, Paris, Hong Kong, New York, to name a few. In fact, it was ranked third globally, as the city with the biggest residential capital growth of 17% in 2021.

With an effective vaccination roll-out and a quick easing of COVID-19 restrictions, Dubai’s economy bounced back fast in 2021,  with the trade and travel sectors opening up, boosting the previously affected real estate sector.

According to a Reuter’s property analyst’s poll, Dubai property prices will double in 2022 due to demand from foreign investors and better affordability. Properties in Dubai are expected to further rise by 5% in 2023.

All the more reason for you to invest in the UAE Real Estate Market!