We have conversations about Buying Real Estate in Dubai with clients from all over the world every single day. We thought we’d share this blog to give you an idea of what to look for when buying property here. We’re constantly reading in the papers and online, listening to marketing and real estate agents from Dubai talking about how strong the market is. It’s easy to get really excited and want to invest immediately. However, there are definitely some properties you should focus on more than others. Here are our four tips for investing in or buying property in Dubai this month.

Tip 1: Look for New Master Communities

First and foremost, look for new master communities. A new master community is like a mini village. Developers like Emaar have recently launched new communities, such as The Heights. These communities include villas, townhouses, apartments, schools, gyms, and more, all within a gated community. If you invest in a property at the beginning of a new master community launch and hold onto it until it’s completed, you’re likely to do well. There’s no point in buying with the intention to flip quickly. Trust me, you’ll get the best returns if you hold the property from launch until handover.

If you miss the initial launch, don’t worry. Transactions happen very quickly in Dubai, and most of my clients struggle to understand this velocity. You often need to act within 48 hours to secure a unit. While it might sound like a sales tactic, it’s the reality of the Buying Real Estate in Dubai market. With 197 nationalities vying for a limited number of units, it’s competitive. If you miss the launch, buying from the secondary market early on is still a good option. We have some great ideas and options for you. Check out my other blogs on our website and get in touch for more information.

Tip 2: Consider Townhouses and Villas

Right now, townhouses and villas are in high demand in Dubai. Since the pandemic, our lifestyles have changed. We want more space for our families, home offices, gardens, and outdoor areas, moving away from apartment living. Dubai hasn’t built enough townhouses and villas to meet this demand, so these properties are doing very well. One of our client bought a property in April last year and have already seen a 100% return on there equity in under 12 months. Depending on the location and developer, you might see even faster returns with villas. Whether you’re buying at launch or on the secondary market, townhouses and villas are a great investment option.

Tip 3: Renovate Older Properties

For those of you with the patience and know-how, renovating older properties can be a lucrative option. Many villas and townhouses in Dubai are getting older. Here, a property is considered old if it’s between 7 and 20 years. These older properties often use different materials and lack modern features like smart home technology. If you have the cash upfront, especially if you’re not a resident (non-residents can get a mortgage up to 60%, generally 50%), renovating can be profitable. Residents have more mortgage options.

We know peoples who bought a property for 4.2 million dirhams a year and a half ago, renovated it, and sold it for 7 million. There’s potential here, but keep in mind that many people are starting to do this, and the entry point for buying a villa is high. You’re looking at spending at least 7 to 8 million dirhams for a detached villa, even if it’s 20 years old. Renovate, landscape, and resell, and depending on the community and location, you can do very well.

Tip 4: Be Cautious with Apartments

If you prefer apartment living, be cautious about why and what you’re buying. Dubai has an abundance of apartments, so you need to be clear on your purpose. If you’re looking for a one-bedroom to use as a lock-up-and-go, a holiday home, or for Airbnb, that’s one thing. However, if you’re coming from a country like England, where apartments are a newer trend and seem easy to handle, remember that Dubai’s market is different. Here, townhouses and villas offer better appreciation than apartments.

For example, If we invested in a townhouse and doubled the money. Despite needing a slightly higher initial investment, the appreciation is much faster. If we haven’t even started receiving rental yields yet as the property isn’t ready, but the appreciation alone should have been significant. You might get a higher reward with townhouses and villas, even if the initial cost is higher.

If you must buy an apartment, ensure it’s a ready property with a good payment plan in a good community. We’ve know peoples who couldn’t make their payments and were desperate to sell because their units were delayed. If we had been their realtor, we wouldn’t have recommended those properties. Not everything in Dubai is equal, and this is true for real estate anywhere in the world. Having someone on the ground who lives and breathes real estate here can be invaluable.

You can Buying Real Estate in Dubai from anywhere in the world. You don’t need a bank account here, and we can handle the entire process for you. Don’t forget to check our latest blogs and checkout latest properties we are working on below for my contact details. We look forward to helping you get started in the Dubai real estate market before it takes off without you.

Conclusion – Buying Real Estate in Dubai

Investing in Dubai’s real estate market requires strategic planning and quick decision-making. By focusing on new master communities, considering the high demand for townhouses and villas, taking on renovation projects, and being cautious with apartment purchases, you can make informed investment decisions. Dubai’s dynamic market offers lucrative opportunities, and with the right guidance, you can navigate it successfully. Take care, bye-bye.

FAQs

1. What are master communities in Dubai?

Master communities in Dubai are large-scale developments that include various amenities like schools, gyms, parks, and retail spaces, creating a self-sustained living environment.

2. Why are townhouses and villas in high demand in Dubai?

Since the pandemic, there has been a shift towards wanting more personal space for families, home offices, and outdoor activities, making townhouses and villas more desirable than apartments.

3. Is renovating older properties in Dubai a good investment?

Yes, renovating older properties can be profitable, especially if you have the capital upfront. Older properties often lack modern features, and updating them can significantly increase their value.

4. Why should I be cautious when buying apartments in Dubai?

Dubai has a large supply of apartments, and not all of them offer good appreciation. It’s important to be clear about your purpose for buying and to choose properties with good payment plans and in desirable communities.

5. Can I buy property in Dubai if I am not a resident?

Yes, non-residents can buy property in Dubai. They can also get a mortgage, typically up to 60% of the property value, depending on their financial situation.