How to choose the object for investment


Investments in Dubai favorably differ from other countries: investing here, you can be sure in the stability of the political and economic situation, the rapid increase of investments due to the constant increase of the value of real estate and rental rates and much more.

Dubai has an open economy with a significant positive annual trade balance. The government is constantly increasing the cost of creating jobs, developing infrastructure and opening up new opportunities for more private sector participation.

The comprehensive legislative regulation of the real estate market in Dubai and the prospects for economic growth in the emirate provide a high level of investment security in this region. At the same time, in order to increase the efficiency of investments, investors can also take a number of steps aimed at maximizing objective and profitable asset selection.

So, when evaluating investments in real estate, you need to accurately set the investment’s financial goals, and also choose the appropriate type of object and formulate the general nature of the investment.

The investment strategy can vary significantly depending on the desired duration of investment:

– One of the most popular ways to earn money on real estate is to invest in the construction phase and profit from the difference in price between the start of work and the completion of work of the object.

– If it is planned to sell the property not for personal use but as a profit-making asset, then it is necessary to take into account the interests of potential buyers and make sure that this property meets the relevant requirements. In other words, such a property should attract future tenants.

– If the investor intends to resell the facility to the end user who will use the building for its intended purpose (for residence, office location, retail space location, etc.), it is necessary at the stage of building selection to make sure that its engineering and technological characteristics meet the requirements of the target audience of buyers.

All this defines the further approaches to the final selection of the object.

The location of the property is of great importance, because when buying an object people also take into consideration its transport accessibility, the presence of a nearby developed social infrastructure, etc.

If the investor is looking for a long-term perspective, those areas where infrastructure construction is just beginning and can last up to 10 years may turn out to be attractive from the investment point of view. But for the purposes of medium-term investment, this option is not suitable.

In turn, investment in real estate located in an area with poorly developed infrastructure makes sense when the value of the object differs favorably from the conditions for the purchase of other properties (up to 40-45%), which may be of considerable commercial interest to the investor. However, it is worth considering the prospects for further improvement of the area and plans for its development in the long-term period.

Speaking about such a parameter of choosing a real estate object as its value, it is worth noting that an extremely important task for an investor is to search for an object with an optimal price-quality ratio, and also to take into consideration the fact how the value of real estate in the area can change in the foreseeable future.

The interest of investors is great also due to the fact that in addition to the favorable conditions in the UAE in general and in Dubai in particular, there is a mass of what is really worth investing in when it comes to the real estate sector. Dubai today can be safely called one of the record holders by the number of what is commonly called the modern word “attraction”, that is, objects that are especially attractive not only for tourists but also for investors.