Expert Tips for Residential Property Investment in UAE

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Real Estate

Expert Tips for Residential Property Investment in UAE

The UAE real estate is back on track after a few sluggish years. The pandemic hit the real estate market globally and UAE was no exception. However, the prices are at a point now when it is just the right time to invest. The market is recovering but it has not reached its peak. This is ideal for resellers as well as for people looking to buy a new house, live in it, and then sell it later.

For residential property investment in the UAE, you need a proper toolkit. This includes all the soft skills that can help you play it smart in this industry. As aforementioned, the time is right. Property rates in Dubai and Abu Dhabi are rising. Having a slice of this delicious cake is on the offering for everyone at the moment.

The right time for real estate buyers to pitch in

Dubai, Sharjah, and Abu Dhabi are all witnessing a crazy spike in the real estate market. Factors like a growing economy and a rising population are at play here. Things are looking to go in the same direction for the predictable future as well. Based on real world data, experts suggest that the curve will head upwards for at least five years. However, it is worth noting that market investments in real estate are always subject to risks. Overinvestment, therefore, should be avoided at all costs.

Helpful tips for real estate buyers in the UAE

Tip 1: Identify your goals

Identify your goals

The first thing to do before investing in property in the UAE is to identify your objectives. This is a key step in the lifecycle of real estate buyers. It helps in determining the kind of property you should invest in. This then leads to scoping the market and looking for the right opportunities.

Identifying one’s goal for residential property investment in the UAE should be based on real world data. You should also approach this market with a flexible mindset. Sticking to what you want to invest in although other verticals might be doing better is the wrong play. Therefore, make sure that you know what you want to achieve and how you want to do it.

If you are a reseller, then residential and commercial properties both open up for you. However, it is for you to decide whether the former or the latter is the better choice. For an end user, residential property investment in the UAE is the right way forward. With the rising population, things are looking good right now.

Tip 2: Research about government policies

Government policies and guidelines in the UAE can also determine the kind of property you want to invest in. Certain areas in Dubai, for example, are on sale and are designated as freehold properties by the UAE government. This means that even a foreigner can buy a residential or commercial plot there.

Expand your research and educate yourself. The idea is to get the established systems on your side and use them to your advantage. Look for places where the government aims to execute projects in the near future. The government also pushes certain properties for investment. Look into those as well.

Tip 3: Learn about the financial side of residential property investment in the UAE

Real estate buyers should not fool themselves into thinking that the down payment and the installments (or complete amount) is the only expense heading their way. Make sure that you expect the following:

  • Agency charges
  • Transaction charges and fees
  • Convenience fees
  • Sales procession fees
  • Insurance
  • Maintenance expenses

This is not all. It is highly recommended that you meet with an advisor and clear your doubts before any investments. These advisors will also charge a sum of money. At the end of it all, you’ll have to do the maths and figure out whether the investment is profitable or not.

Tip 4: Maintenance expenses

Maintenance expenses

This is not all though. Maintenance expenses and service charges should be considered and calculated beforehand. Depending on the location of the property, you’ll have to weigh this factor and come up with an affordable solution. For real estate buyers who want to resell, the longer they hold this property, the more the maintenance will be.

Tip 5: Scope out locations and hire a licensed consultant

The most important thing in residential property investment in the UAE is the location of the property. Your research on this ‘department’ should be thorough and well thought out. This is why we recommend working with a licensed consultant who is an expert on the real estate scene in the UAE.

A property in the UAE is heavily reliant on its location and its future prospects when it comes to defining its value. It is crucial that you understand this before dipping your feet in the pond.

Tip 6: Verse yourself with the buying flow

Verse yourself with the buying flow

This includes the complete mechanism of how property investment takes action in the UAE. You should be well-versed with the process – the A to the Z. Some of the steps that need special mention and consideration here are:

  • How and when to make an offer.
  • How the negotiation takes place – the formalities and the execution.
  • Defining and drafting the contract.
  • Other documentation is required.
  • Arranging the NOC.
  • The handover process.

Working closely with a qualified real estate investment expert will do a lot of good here. They can help you come up with a checklist and guide you through the process.

Tip 7: Plan when and how to sell the property

Plan when and how to sell the property

This should be considered and planned from the very beginning but as usual, you should be flexible with it. An exit plan is important and decisive in the success of your real estate investment.

There are also certain things that come up when the property is being handed over. The value of the property is defined by many parameters, one of which is the utility factor. The location and the market data may be positive but the practical ground-level reality may be different. This is why an exit plan must be in place to bail you out of unfortunate investments.