My Favorite Properties
No Favorite Properties

What Are The Risks Involved In Dubai Property Investment?


 

Dubai is one of the most preferred expat locations in the world. The ease of living, low crime rates, high standards, pleasantly warm weather are some of the reasons making it one of the best cities in the world. Dubai’s economy is on the rise and also attracting potential enthusiasts to grow their careers in this glamorous city. 

It was the economic stability & growth of Dubai that has prompted tons of expats, entrepreneurs to invest in real estate purchases. Rather than renting properties, people are seeing Dubai’s real estate as an investment opportunity. The property's value keeps on growing in Dubai and that can help in achieving big-scale benefits. 

While the Dubai real estate investment seems to be fruitful, there are several risks associated with buying property on foreign land. To make it insightful, we are sharing the relevant information & risks associated with buying property. 

Ease Of Buying Properties In Dubai

For the past two decades, Dubai has been welcoming foreign investments with open arms. Huge awareness programs are used on multiple platforms luring aspiring entrepreneurs. The city is receiving a huge rise in commercial spaces purchased from new venture buildings. Be it for business setup and flourish or buying properties, everyone is considering Dubai as their foremost option for future investments. Programs like Retire In Dubai or others are a suitable example of how the UAE is proactive in opening new channels of investments. 

5ZYtcIzAvQYgn4cClTAUJrHUoECFsKONcQbx5Ns0
 

Here are some of the benefits to investing in the commercial real estate of Dubai: 

 

Reasonable Real Estate Pricing

Even after being one of the wealthiest economies in the world, some presume that it will have only expensive deals on the table. But, that’s not true at all as Dubai has numerous affordably-priced properties, unlike Los Angeles. 


Safe and Stable Economy


Dubai has got recognition as the safest city across the globe, especially for women. This makes it a great location to invest in commercial or residential real estate properties. 
 

High Rental Yields


The extremely high rental yields are one of the essential reasons to invest in Dubai. If we believe in the data, the investors can achieve around 12% of rental yields. 
 

Bright Future Growth


The UAE economy is bound to grow to a huge extent till 2030 and the same is going to follow for real estate. Be in touch with the financial advisor to check with the current investment scenario & market value in Dubai. 
 

Safety Concerns For Dubai Real Estate Investment


Investing in a property purchase is always a very crucial decision irrespective of the location. Buying commercial real estate properties in Dubai also needs some sort of caution. The better approach is to seek out the property experts to stay out of any concern or trouble. The finance and real estate agency in Dubai can deliver the most up-to-date advice for a worthy investment in the right location. 

However, Dubai is one of those cities in the world that offers a safe process and environment to buy commercial properties. The government offers huge relaxation in the investment and real estate laws considering the wide scope of business opportunities in Dubai. More and more global scale businesses are coming to the city and that boosts the commercial investments. 

Still, it is important to understand the area, property, location, and various other terms. Keep a lawyer by your side to take care of the legal implications and advice. The lawyer can even take care of various legal transactions while purchasing properties. The cost of commercial spaces in Dubai starts from 1.5 M and goes around 16M. The initial price might be fixed and seem to be within budget, there can be various additional charges to deal with like government tax, mortgage tax, and agency fees. 
 

5 Major Risks Associated With Real Estate Dubai

 
 

When it comes to getting success in making huge profits, Dubai is one of the best-choice cities across the globe. Still, there are some risks involved in the process that you should be aware of.  
 

1. Past Scams In Dubai Real Estate
 

Even if it was rare, some retirees and expats have been victims of scams by conmen. Presenting as the real estate agents, lenders, sellers, they’ve been able to deceive people making property investments in Dubai. The easy way to dodge these scams is to perform a background check of the agents & keep a team of good lawyers by your side. 
 

2. Selection Of Wrong Community
 

Even after being one of the high-standard cities across the globe, several communities are lacking enough amenities. When a buyer plans to invest in properties, the expectations include certain amenities. Hence, it is essential to invest some time in research rather than make a blind investment. Make sure the neighborhood has everything to offer as per your expectations. In case not, you need to switch to some other locality for purchasing a property. 

gTVxHBDqBivF4VZU7uUTbzlEYZSGRq1N6luDsY0G
 

3. Lower Rental Yields 


One of the prominent reasons that Dubai receives the investments is high rental yields. Investors can get around 12% yield on an apartment & 7% yield on a villa. Although these figures are true for some parts of the city, it is much higher than multiple USA cities. So, it becomes mandatory to tap into quick research about rental yields before buying a property.  
 

4. Opting For Wrong Property Builder 


In case you’ve decided to invest in a property and build the same, choosing the right builder is essential. Ignoring this and dealing with the rogue builders can end up with half-finished construction or poor quality. It is going to be a huge loss of capital for you. 
 

5. Possibility Of Economy Fall


Although, the UAE economy is stable and growing in the current scenario. But, we can’t forecast the same figures in the future too as it is the country’s economy. A considerable amount of contribution comes from oil production and the huge global demand has been one of the strong pillars. But, if we believe in the future forecasts, the global oil demand is likely to decrease in the coming decades. It can surely hit the country’s economy. However, the UAE government has already calculated the risk and pushed the load to other sectors too. 
 

Final Word 


Overall, we can conclude that both advantages and risks are associated with commercial real estate investment in Dubai. Always deal with trustworthy professionals & rely on in-depth research to ensure secure investment. Ensure smooth and guaranteed support to purchase your next property in commercial spaces.

 

Latest Updates