Things to Consider before Investing in Dubai’s New Districts

When it comes to real estate, no city compares to Dubai. There are numerous world-class villa communities here and impressive skyscrapers and vast palm tree-shaped islands. It is unmatched in terms of lifestyle and is one of the safest cities on the planet. However, many people wonder whether investing in Dubai real estate is good.

The Value of Real Estate in Dubai

Location is the prime determiner of any property’s value, whether on a local or international level. For this reason, many investors need to be particular about choosing the best place to put their money in.

Recent reports indicate that new districts may offer some of Dubai's highest rental yields. According to current data, Dubai's emerging and budget-freehold neighborhoods offer gains of nearly 9%, followed by midmarket neighborhoods such as The Greens and Jumeirah Lake Towers that offer yields by almost 8%. If you want to catch on to this wave, you need to know which variables will affect your investments.

Here are things to consider before investing in Dubai's new districts:

1. Know The Market

It is essential to study the market you are about to enter and understand how it works when investing. Dubai is a fast-paced city, and the real estate market is no different. Rents are on the rise and likely remain high for at least the next decade.

In some parts of the city, foreigners buy most of the new housing, reducing the market for locals.

2. Pay Attention to Curb Appeal

No building or renovation can make up for the lack of curb appeal. To know what to look for when you invest in Dubai real estate, get a professional to walk around with you and point out good or bad about particular properties.

Don't make any impulse purchases because if something doesn't look good, you will probably not be happy there.

3. Check That You're Calculating Your ROI Correctly

When calculating ROI, it is crucial to consider the total cost of the property and not just the purchase price. Don't forget to include the cost of buying, renovating, and maintaining the property. You should also include taxes in your calculations.

Additionally, don't forget to include any additional expenses that you may incur in the future, such as a higher cost of living, maintenance fees, or property taxes.

4. Beware of Hidden Costs

Before making any purchase, it is essential to know the property inside. After buying a property, many people have found that renovation costs are higher than expected.

When calculating your ROI, make sure to consider any hidden costs you may encounter.

5. Consider Your Goal

Before buying a property, it is essential to consider where you are in life and what type of property you are looking for. Dubai is tax-free, but long-term residents should consider their tax situation.

For example, it is crucial to know whether your residence visa lasts for a minimum of seven years or just for one year. If your visa is for one year, it may not be worth the investment if you are not planning to stay in Dubai for long.

Final Advice

Finally, nothing beats a well-thought-out real estate investment strategy. You should always know what you are investing in and how it will affect your bottom line. This is especially important when the property is in Dubai.

Our real estate agents in Dubai can help you decide on the best place to invest in the country.If you need help with a real estate investment strategy or have any questions about Dubai, make sure to reach out to Dacha Real Estate.