Dubai realty market marches ahead due to higher returns - GulfToday

Dubai realty market marches ahead due to higher returns

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Dubai is leading in different sectors such as tourism, services, ports and communications.

Inayat-ur-Rahman

The feasibility of investment in the real estate sector depends mainly on the qualification of the investor and his courage to take risk, on which  his expectations of  the returns  rely. He should bear in mind that the process of buying and selling a property always needs serious considerations and planning, so it should be well-prepared  before ruling it out.

The property asset can be called the “your righteous son” or, as it is said, “property is the best asset.”

“Buying a property is one of the most profitable investments., the need for housing and offices is not newly born need  or limited to a period of time, it is always there,” said Waleed Al Zarouni, a leading real estate expert and chairman of W Capital during an exclusive interview with Gulf Today.

“Since investing in real estate is the best type of investments, investors think of Dubai as one of the most important regions for investing in the real estate sector,” he added.

“Dubai topped the real estate investment destinations in the Middle East, thanks to high returns and also due to flexible regulations set by the Government of Dubai. The emirate is also superior in many sectors  such as  tourism, services, ports and communications.”

Al Zarouni says the diversity of investment opportunities, which are highly interdependent, gives Dubai another advantage. Here are the top 10 factors that motivate you to invest in the real estate sector:

 A depot for value and savings: Real estate investment is your safe store of value against financial and economic fluctuations, and an ideal way to preserve and allocate capital in the long term. Buying a property is the best investment tool to keep your savings, specially when investing in a real estate project of a good location that provides all the main services. It is advisable also to choose a well-known developer and reputable real estate broker. Market supply and demand is an important factor to be taken into consideration while investing money.

 An additional source of income:  Investment in real estate represents an opportunity for a large segment of society to generate additional income added to their basic one .

It is a type of secured and fixed investment because it is linked to fixed assets which are often difficult to dispel.

 Resale:  When buying a property for resale after, say, 5 years, you will not sell at a loss if you choose the right location, the right developer and the right project.

Timing: Choosing the right time to buy a property is an important thing that allows the buyer to get the perfect deal at an excellent price in a better location. The right time to buy a property, especially residential, varies from one city to another for several reasons. Anyhow, there are common points to pay attention to ,such as the bear or bull  property market in the year you intend to buy, in addition to the accurate track of the real estate cycle.

Great diversity:  Real estate investments offers enough variety with endless options, ranging from commercial real estate including industrial, retail, offices, even parking spaces; to residential property for rent, refurbishment and sale. Everybody can invest in this sector regardless of their financial goals.

 Easy access to finance: Mortgage loans are a key part of any bank business model. Lenders are more likely to lend in residential property than any other asset class, because they recognize that property assets offer a higher value and lower interest rates than any other asset class, including commercial property. This makes financing property investments easier.

 Price elasticity:  In the real estate market, negotiation is the basis of the buying and selling process. There is  also a considerable scope for undervalued property, such as a deceased person’s property, or sale due to divorce.

 Easy purchasing process: Purchasing a property is so easy that it does not require experts help or experience , as is the case in stocks and bonds.

 The market is stable:  The real estate market is the least volatile compared to other markets such as stock markets. The long span of time between property deals, reduces market volatility.

Security and safety: The security and safety of the real estate sector is a priority for every investor, as this property is often a home for himself and his family.

Al Zarouni said the upcoming international event,  which is less than a year from now, helped drive demand for Dubai’s real estate sector.

He showed his great confidence in the effects of new laws and regulations that stimulate the real estate sector in the country during the past few years, which will support the real estate sector, and accelerate its growth during the next year. That will include the term relating to age limit of 70 years in real estate financing when paying the last installment, in addition to the event of Expo 2020 Dubai which is becoming nearer.

He confirmed that the real estate market in Dubai offers better opportunities for both investors and tenants alike, during the third quarter of this year.


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