Hey everyone! If you’re thinking about purchasing a property in Dubai and you see it online at a really cheap price and think it’s amazing, I suggest you keep reading because you cannot always expect to make money from buying property in Dubai.
The Dubai Property Market
Alright, so this article is intended for anyone considering purchasing a property in Dubai. If you’ve already started looking for properties, it’s likely that you’ve started seeing ads. Once you start getting ads, you see all these amazing pictures of more credible-looking properties. But you need to realize that you can’t just expect every property to make you money, and I’m going to explain why.
Understanding Dubai’s Expansion
First, let’s talk about Dubai as a whole. As you know, it’s built from the coast outwards. As Dubai grows and the city thrives, they are building outwards because they have more land. This means new communities are emerging, making prices cheaper as you go out. You’ve got the Marina, Downtown, areas like the Palm, and then it filters backwards to more popular areas with low to medium entry-level investment products like JVC, Arjan, and Dubai Land, which we’ve talked about in our blogs previously.
The Appeal of Low-Cost Properties
What we’ve noticed is a trend where people see properties advertised in the UK or elsewhere, and they see a townhouse for a million Dirhams or a one-bedroom for £200,000 or even less, like £120,000. It’s not always going to make you money, and this is why you need to be careful and do your research first.
Factors to Consider When Buying Property in Dubai
When looking at areas in Dubai, consider a few things:
Accessibility and Infrastructure
How accessible is the area to all the main parts of the city? For example, if you live in JVC, Arjan, or Dubai Land, how easy is it to get onto the roads that connect you to the main roads to get you to the city quickly? All these communities trying to establish themselves need the infrastructure around them before they will make you any money. You also need to consider what is actually happening in the area to increase the property’s value.
Public Transportation Options
You’ll see that these other communities outside the city are starting to introduce Metro stations, bus lines, and other public transport options because not everyone drives in Dubai. If you don’t have a driver’s license and don’t want to pay for taxis, the cheapest way is to have access to Metro stations and other amenities that make it easier for you to travel where you need to go.
Future Development and Amenities
We’ve noticed people coming to us saying, “I just purchased a one-bedroom for less than £130,000.” I ask, “Alright, cool. What area is it?” and then I look at it on the map, and it’s way out into the desert in an unestablished area. It’s not necessarily a bad decision to buy because it looks amazing—the pool looks great, the rooms look nice, and the finishing looks good on the PDF renders. But you need to think: before you Buying Property in Dubai and in this area, just because the property looks good, are they going to build hospitals, schools, gyms, etc.? You need to consider all these things.
Living Convenience in Dubai
Dubai is one of the most convenient cities in the world. If we ordered a pair of earphones, some milk, and coffee, We could get it in 15 minutes because we live in a busy area using one of the apps everyone uses, like Deliveroo. Now, if you look outside the city, there are still places that don’t have access to any of these because there are no restaurants or shops nearby. You need to consider this because you don’t want to live in an area where you can’t even get a takeaway.
The Importance of Research
So, basically you need to do your research before purchasing a property. Don’t just look at the price and think, “Wow, that looks amazing for the price,” because if the area is not established, you’ll find it hard to rent out and make any profit. It’s definitely not going to appreciate for the next five to ten years, and you might lose money if it’s not in a good area.
Seeking Professional Advice
To conclude, if you are considering purchasing a property and need some advice, We suggest you reach out to someone who deals with investors worldwide, understands the areas, and knows what is upcoming. They can foresee what’s going to happen in the area to make it a profitable investment. Don’t just think, “Okay, I’m going to put 10 or 5 percent down right now because it’s got an amazing payment plan and the renders look amazing.” If you rush it and make the wrong decision, you’ll regret it in the future and wish you had listened to someone. Then you’ll just say, “It didn’t make me any money; it made me lose money.”
If you need any more advice, reach out, and We look forward to hearing from you on the Discovery call. We hope you found this useful, and We’ll see you in the next blog.
FAQs
1. What is the best area to Buying Property in Dubai for investment?
The best area depends on your budget and investment goals. Popular areas for investment include Dubai Marina, Downtown Dubai, and emerging communities like JVC and Arjan.
2. Is it safe to invest in off-plan properties in Dubai?
Investing in off-plan properties can be profitable if you choose reputable developers and promising locations. Always do thorough research before committing.
3. How can I ensure a property’s future appreciation in Dubai?
Look for areas with upcoming infrastructure developments, proximity to public transport, and planned community amenities like schools and hospitals.
4. Are there any hidden costs when buying property in Dubai?
Yes, there can be additional costs such as agency fees, maintenance fees, and service charges. Make sure to account for these in your budget.
5. What are the legal requirements for buying property in Dubai as a foreigner?
Foreigners can buy property in designated freehold areas. It’s important to understand the legal processes and work with a reliable real estate agent or lawyer.
