5 FAQs About Real Estate Answered by the Industry Experts

Real estate can be a confusing and overwhelming industry, especially for those new to it. There are a lot of questions that buyers and sellers may have. However, being informed and prepared to make the best decisions is essential to get the best deals possible.

In addition to researching the market, you’ll need to find a real estate agent to help you navigate the process. An experienced real estate agent can provide valuable advice and insight into the current market. But which frequently-asked questions are there? Here are some ideas.

1. What is the maximum increase landlords can add upon contract renewal?

There are many factors why landlords increase rent. For some, it is because of the demands. But others consider the inflation in the country. However, landlords can only increase up to 20 percent of the initial contract upon renewal if the existing rent exceeds 40 percent of the average rate.

Meanwhile, landlords can use a rental increase calculator mandated by Decree No. (2) of 2011. As a result, landlords will know easier how much increase they can provide for their current tenants without going overboard against government rules.

2. Where is the best place to invest in the first property?

The best place to invest in the first property will depend on your budget, goals, and location. If you're looking for a property to rent out for income, you should consider areas with high rental demand, such as near universities or hospitals.

If you're looking to flip a property for a quick profit, you should look for properties needing repair that you can buy at a discount. But for a long-term investment, consider areas with potential for appreciation. Ultimately, the best place to invest in the first property depends on goals and budget.

3. Which tips should ex-pat investors should know?

The United Arab Emirates (UAE) is a popular destination for foreign investors and tourists. With its strong economy and bustling business environment, Dubai is one of the most attractive cities in the region for international business.

However, there are certain restrictions in place when it comes to foreign ownership in the city. Foreigners can own land and buildings in designated areas, but they cannot own land and buildings in other areas.

4. Which predictions are there for property prices in Dubai in 2023?

The real estate market in Dubai is expected to remain strong in the coming years, with property prices continuing to rise. The average prices of apartments and villas in Dubai will likely increase by 3-5% in 2023.

Dubai's rising demand for property is driven by the city's economic and population growth and the influx of foreign investors. In addition, the government's efforts to attract foreign investment and strengthen the economy are expected to boost the real estate market further.

5. Why is investing better than renting?

Property investment is a long-term investment that can provide a steady income stream. Unlike renting, which only includes income in the short term, investing in property can provide financial security over a long time. It can also provide capital appreciation.

As a result, the property's value can increase over time, resulting in a greater return on the initial investment than renting, as rental incomes are typically fixed. In addition, investing in property can provide tax benefits that can reduce the overall cost of ownership.

Conclusion

Real estate is a complex industry with a wide range of topics that can be difficult to understand. From understanding the basics of buying and selling to navigating the complexities of mortgages and financing, it can be overwhelming for new investors. However, a basic understanding of the industry can help you make informed decisions when investing in real estate.

Dacha Real Estate is a property agency in Dubai Marina dedicated to helping clients buy or sell properties in the market. As one of the leading real estate companies, we aim to make the process easier and seamless for buyers and sellers. Learn more about the process from real estate agents by booking an appointment on our website today.