Following the opening of the real estate market in the early 2000s for foreign investors, the industry has seen an increase in the number of transactions and prices of properties. The real estate market crash in 2007 saw many Dubai real estate agencies hold back on their purchase of houses. Many of them advised investors to sell off their homes due to the uncertainty of the market.
However, all of that has changed. For foreigners, Dubai is a great place to invest in real estate. The task-free houses they get, the booming economy and the increase in GDP of the country are juicy. No investor wants to miss out.
Buying a home either ready or off plan property in Dubai, especially for foreigners who aren’t familiar with the place, its rules, and the inner workings of the real estate market involves many risks.
In this post, we would be highlighting five ways to minimize risk when investing in property in the UAE.
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Do adequate research
Foreigners coming into the country to invest in property should do due diligence to make a proper and thorough research on the house they are buying. The different factors that constitute an excellent property: price, location, payment plan, and the likes should be adequately understood. A house is a massive investment, so one must be careful to know where and what it involves.
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Get an experienced and certified agent
A real estate agent who is experienced and knowledgeable about UAE, about the properties, and how to navigate through the market is a must-have. They significantly reduce the risk of running into a scam deal, help foreign investors save loads of money, and get them the best deals available. The agent you hire must be certified and registered with RERA (Real Estate Regulatory Agency),
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Have some savings
Sometimes the buying process may not go according to plans. Having an extra saved somewhere would help an investor buffer the unexpected and avoid making rash decisions.
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Read the offer thoroughly before signing
Many investors just google the meaning of terms of contracts, believing that would be enough. As much as saving cost is a good thing, keeping cost at the expense of property investment when you can use the service of a professional is foolish. An investor, whether buying one of the City Walk apartments or an Arabian Ranches villas, should read the contract terms thoroughly and ask their real estate agent if they don’t understand some thin lines.
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Don’t be emotional
Buying a property, as most top real estate brokers in Dubai would say, isn’t an emotional investment. Because you like the house as an investor does not mean the tenants to be would like it. Buy the properties that would meet the needs of potential tenants and not those you are emotionally attached to as an investor. Know that the UAE terrain is different and should be treated with its peculiarities in mind while buying a property.
Besides, buying a property in the UAE is not a herculean task if the investors take their time to understand the market. Also, house flipping is not good investment advice at this point. Investing for the long term would be more profitable.
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Interesting related article: “What is an Investor?“