Investing in the real estate sector of emerging economies has great prospects of reaping long-term rich harvests. However, investing in the real estate sector, especially if you are not a citizen of that country, can be quite challenging.
Hence, if you fall into this category and are looking into investing in real estate as a non-citizen, this article will guide you through making the best choices in the field of property management, Dubai.
Making the Right Choices in the Real Estate Sector
The Location of the Property
The demand for any property, be it residential or commercial, depends on the property's location. The property rate is directly proportional to that demand. So, if any place has a lot of amenities, then it is obvious that the demand for that place and, subsequently, the land cost for that place will be quite high.
For instance, if a well-connected area is located close to the airport and has all the basic facilities like schools, hotels, markets, hospitals, etc., then it will command a higher price in the market.
In Dubai, places like the Jumeirah Village Circle, Al Barari, Mirdif, Dubai Marina, and Palm Jumeirah are posh localities and command the highest prices. So, if you have the financial resources, consider investing in these areas, as their property inflation rate is also relatively high.
The Type of Ownership
When you buy a house, there are two types of ownership: freehold or lease.
In the case of freehold properties, the property is perpetually (without any fixed time limit) owned by the buyer. On the other hand, a leasehold property is owned for a fixed period, say twenty or forty years. New buyers tend to prefer properties that are sold as freeholds rather than leaseholds because there is no time limit on how long you can own the property.
So, when investing in a new property in Dubai, make sure to verify whether it is freehold or leasehold.
The Reputation of the Real Estate Developer
When it comes to buying or renovating a property, a real estate developer acts as your friend, philosopher, and guide. So, it’s crucial to thoroughly research their past projects to ensure that your investment is in safe hands. It is also safe practice to keep track of the timelines of when you get possession of a property after making the booking or payment.
Possession of an Investment Visa
An investment visa is essential for investment in the real estate sector of Dubai. It is available for 3, 5, or 10 years to foreign citizens.
Final Thoughts
Dubai encourages investment from foreign citizens as it improves the country's foreign direct investments (FDI), contributing to its development. However, investing in properties requires significant capital, so make a prudent choice after thorough research. This way, you can find and invest in good localities to reap rich dividends on your investment. Of course, ensure that you have the right visa type that allows you to acquire properties in Dubai.