As a city with a gleaming future, Dubai holds much potential for those looking to invest into the property market.
Emerging as one of the main business hubs for the Persian Gulf, Dubai is also a huge hit with tourists thanks to its contemporary and innovative architecture.
Picking the right place in Dubai could be a very shrewd investment, but like most places in the world, there are some factors which should always be considered before splashing out.
Here’s our guide to property investing in Dubai, and how to get the most for your money.
Dubai property, where will you invest your money?
Within Dubai itself is a great range of neighbourhoods, some better than others. Bur Dubai is a popular location when you’re looking to invest in a property for rental, when the location could make the difference between success and failure.
The most obvious things to look for is the state of other properties in the area; are they well looked after and in good condition? Are there many people selling up or are they clamouring to get in?
Take a trip around the area at different times of the day; it may look fine during the afternoon but if at night there’s lots of crime, or gangs hanging around you might find it’s not the place for you.
But there are other location factors to consider too. To get a property that’s going to deliver the greatest returns you will need to make sure it has fantastic transport links and is easy to reach. Shops, amenities and popular locations will all need to be accessible from the site, preferably without having to hire a vehicle.
Track record of developer
If you’re buying a new property, it’s a good idea to check out the past history of the developer and the success they’ve had with previous projects.
This information should be easily obtainable and should help give you an idea of what you can expect from the property you hope to buy.
You should check not just whether the development was completed, but also whether they were successful and what the areas look like now. Other factors could include whether they were delivered on time and whether the costs matched the initial projection.
There are lots of development opportunities in a popular city such as Dubai so it’s imperative that you make sure your investment will provide what you are hoping for.
Don’t forget to consider the builder
The developer and the builder are two different entities and the quality of the structure will depend on the skills of the builders who construct it.
Find out who will be building your property and check their safety record; you don’t want any concerns over the integrity of the structure once it’s up.
Any outstanding issues
The buildings may have been completed but if the developer has not transacted properly with previously buyers, you could be in for a lot of trouble.
To find out if there are any issues, try checking to see if there are any outstanding problems between the developer and the Interim Owner’s Association, a group which provides status to home-buyers in Dubai. Although it doesn’t bestow any legal rights, it’s a way of tracking whether the property purchases between a developer and their buyers are moving smoothly and can provide peace of mind for future investors coming into the market.
Where to invest in Dubai? It’s an interesting question
Recurring monthly costs
When you are looking for a property for investment purposes, it’s easy to focus on the acquisition costs and forget about other factors.
The ongoing costs will play a huge role in the success of the investment so don’t forget to check these too. Recurring payments such as a service charge, as well as the likely cost of utilities will all need to be included in your calculations when deciding if a property is worth investing in.
This is an important issue for both new builds and the purchase of existing properties too.
Investing in a property in Dubai could be an extremely wise financial move but make sure you do your homework in advance so you don’t waste your money. If you find the right property, it could be just the start of your United Arab Emirates portfolio, a country which promises much for the future, including great returns on investment.