How to Maximize Returns on Your Property Investment in Dubai?
Published on 2020
Reading Time : 5 Mins
Investing in the real estate sector is recognized among the most profitable ventures in Dubai. Being the most populated city in the UAE, Dubai holds pivotal importance for property investors. People, from across the globe, show their keenness in investing in this sector for the potential it has. However, the process isn’t as simple as it sounds. It’s not like you just buy any property and sell it a high rate to earn a profit. A lot more goes behind maximizing returns on real estate investment in Dubai. Here’s how you can maximize returns on your property investment:
Investing in an Off-Plan Property
Off-plan property is under-construction or yet to be developed. It has the potential to yield incredible capital gains provided you have invested in the right property. If the said property is located at an ideal location, there are high chances that you will start getting offers even before it is completed.
Another factor that goes in favor of off-plan property is that it costs less as compared to a finished apartment/villa. There is also an option to have a convenient payment plan. You can make payments in the form of installments instead of a lump sum. Furthermore, with the surge in the number of residential projects currently under development, you can now have more options at your disposal to find an off-plan property worth investing.
Selecting the Right Neighborhood
A key to earning profits on property investment in Dubai is the selection of the neighborhood. The more accessible the area, the higher there will be chances of maximizing returns. So, carefully select the neighborhood. Also, keep in consideration your budget as properties in some neighborhoods require a higher investment than others.
If you plan to put up the property on rent, look for neighborhoods that are known to have better potential for villas, townhouses or apartments for rent in Dubai.
Having an Energy-Efficient Design
Many people tend to ignore this fact but having an energy-efficient design of the property you are investing in can prove to be quite useful. Initially, you will have to spend money to make the property energy-efficient. However, you can recover all the cost once it is sold or rented as it can help to maximize its value.
This is due to the fact that people generally prefer such residences to save on their utility costs. So, if your property has an energy-efficient design, it will garner a higher level of interest from tenants or potential buyers. There will be high chances of your property finding a buyer or tenant that too at a good value.
Even if you don’t plan to put up the property on sale or rent, it can still prove to be a useful step to make it energy efficient. You will have reduced utility bills. This can help you to save money.
Making the Right Call between Apartment or Villa
One of the biggest dilemmas property investors face is whether to invest in a villa or an apartment. Both these options come with their own sets of perks. Apartments are known to offer stronger rental yields as compared to villas because of the affordability factors. On the other hand, luxury rental villas have their own market. Once you have found a tenant for your villa, you can enjoy a continuous stream of income for years to come, until the property is occupied.
Availability of Essential Amenities & Features
A major thing people look for, apart from its location, is the availability of essential amenities when they have to rent or buy property in Dubai. Thus, make sure you are investing in a property that features all the basic amenities and boasts of important features that people look for in a villa or apartment.
Regular Maintenance Work
Keeping your property well-maintained is necessary if you want to yield high returns from it. In case, it needs any repair work, get it done before inviting a potential buyer or tenant. Furthermore, ensure that the interiors and exterior are up to the standard. Make efforts to enhance the décor. All these things will contribute a lot to get high returns from the property.
This one is for those who want to list their property for rent. Don’t set the rental price too high for your property as it will limit your prospects. People will discard the option of renting your property even before visiting it due to the high rent. So, study the market thoroughly and set the rental value accordingly.
A Final Word
It goes without saying that every investor wants to get high returns from their investment. This, however, is only possible if they have taken an informed and well-thought decision. Dubai, as we have discussed above, has many options for investors looking to invest their money in the real estate sector but the guidance of an expert is necessary to make the best choice.
You can contact experts at Zoom Property for any sort of assistance if you want to invest in Dubai’s property sector and maximize your returns.