Top 5 Mistakes Investors Make in Dubai Real Estate Market 2023

In this video we will be talking about best ways and places to invest your money. In dubai not every investment might give you the same result that you are willing to receive. There are some strategies that u need to follow if you are not willing to loose your money while investing in Dubai’s real estate.
First mistake is investor not fully understanding the purpose of purchase. There could be different reasons to buy a property, whether to invest, rent out, to perceive capital or maybe just for living. You can’t achieve all above by buying one property, so you have to define the purpose of purchase and then make your purchase. If you are not sure about your plans you can contact us and we can help you to understand your desires and choose the property that works best for you.
Additionally, you should decide the budget that you aiming for. On average you can buy a property in Dubai starting from $100.00-150.000, and the sky is the limit for maximum prices

Buying in bulk and selling retail is one of the most common strategies that investors use, their primary motivation sounds like “Buy more - own more” but not everyone understands that it doesn’t work all the time. From our experience we can say that it’s always better to invest in one elite real estate rather than 5-6 different apartments. The reason for that is the number of luxury real estate apartment is limited, and the more your product scare is, the more expensive the price will be. Which means on one side you having multiple different apartments but there are no buyers for your property, or on another side you have one luxury apartment that everybody wants. In second scenario you will get much more higher ROI as well as more clients that are willing to buy your apartment because it’s more rare comparing to other ordinary apartments.

Also while buying upper floors be careful not to overpay since those kind of apartments are usually overpriced by 30%, so buy upper floors only if you are 100% confident in the profitability of your purchase.

Mistake 3, is very logical one, it’s when you try to sell the property for a profit when a developer still haven’t sold all of their apartments completely. Nobody is gonna buy an apartment from you by paying more while the developer has the cheaper version. You should never rush reselling your property at the early stage, because if there are other people who wants to make quick money and rushes to sell, they will drop the price of property. And if you also decide to sell at this time, you will be loosing the opportunity to sell when there is more demand and less supply in the market for your property. It’s always better to sell at the peak, sell when everyone wants to buy not when everyone wants to sell.

Don’t forget about the view that you will see from your house, and always opt for the nicer view, because while buying, the cost of the apartment with the view for construction and cost of the apartment with the view for beach might cost almost the same amount. But in the future, it greatly affects the capitalization of the apartment, whether you want to resell or rent your apartment nice view will attract more attention.

Additionally, don’t purchase apartments on lower floors, they might be cheap while purchasing but will be almost impossible to sell later on. In Dubai people prefer higher floors. Lower floors are illiquid in Dubai so think twice before purchasing an apartment from lower floor.

Always pay attention to the tenure status of your purchase. Many investors are attracted by the idea of purchasing hotel apartments. It’s a beautiful hotel room where you can live and when you don’t live in there for your personal reasons it will be rented out by your hotel. At first glance it sounds amazing but coin has two sides. By owning such property your room will be considered as commercial real estate which means you will be obligated to pay taxes up to $100.000 annually. Moreover you won’t be able to get your visa from owning such property. Although it’s a nice option to save up some money, you won’t be profited from it as much as it may look like from the outside.

Choosing a property to invest might be a challenging and overwhelming thing to do and we are here to ease your goal together. With us you will be getting the best options that suits you best. We care about our customer and seek for their satisfaction and look for long term partnership. SO without any hesitation kindly contact us and we will be more than happy to assist you

Timecodes
0:00 Intro
01:03 First mistake
01:41 Decide your budget
02:16 Second mistake
02:43 Buying up floors
03:20 Third mistake
04:10 Right timing
05:07 The view matters
05:33 Lower floors in Dubai
06:23 Don’t invest in Hotel rooms?
07:35 Outro


Did you miss our previous article...
https://trendinginrealestate.com/multifamily-investing/multifamily-real-estate-investing-101-i-wealth-by-choice