Expert Eye - Get the best out of your investments

Rakesh Mirchandani - Director, KGR Real EstateRakesh Mirchandani - Director, KGR Real Estate

Be it first-time buyers or seasoned property investors, everyone is looking for those few golden rules that help make any investment a good one.

When it comes to real estate investments, there are a few staples that any profitable investment features. Seasoned property investors turn to Dubai’s booming property landscape and generally seek a few important aspects while considering an investment.

The first and seemingly most important interest is in high-yield properties. With Dubai’s rapid development, buyers have plenty of opportunities to invest in upcoming high-yield areas that promise enticing rental and sale returns. Prime locations such as Downtown Dubai, Dubai Marina and other established areas fall under this category. The Address Downtown, for instance, offers a unique rental pool whereby owners are able to obtain daily rentals on their units, leading to some extremely lucrative returns.

A key area that developers, real estate dealers and investors have their eyes on currently is the Palm Jumeirah. It is being developed at a remarkable pace with various residences, hospitality projects, retail and dining strips, malls and facilities and services. Properties here promise high-yield investments, with many projects getting sold out immediately upon launch.

Many investors are also looking for low prices per square foot area. The property market is often considered a volatile space not only in Dubai but also globally. Buyers prefer to take smaller risks. Although smaller risks yield lower returns, striking a balance between high-yield and low-cost properties makes for an ideal investment.

Ready properties often attach higher price tags and value. Though many buyers prefer ready properties, buying off-plan properties being developed by well-known and established developers is often a better option.

Areas such as Discovery Gardens and MotorCity are reasonably priced investments and trends indicate consistent returns.

Discovery Gardens, in particular, is linked by timely public transport connectivity, lies in proximity to the Dubai Metro and is a self-sufficient area laden with supermarkets, a variety of dining options and medical centres and is a stone’s throw away from Ibn Battuta Mall.

Jumeirah Village Circle, Jumeirah Village Triangle and Dubai Sports City are areas that have several low-cost options. These are well-contained communities complete with shopping complexes, medical facilities and town centres, and are certainly high-yield options for long-term investors.

Over the next six years leading to the development of the Expo 2020 site, developers will be focusing their efforts on residential units, low-cost and budget hotels, and services near the site which will be equidistant from Abu Dhabi and Dubai. A new energy centre for economic and cultural activity will thus form, opening several practical, low-cost and high-yield investment options.

Lastly, both international and local investors look for payment plans that begin after the completion of a property. With a host of different developers shaping the Dubai’s skyline and landscape, making it one of the world’s most sought-after property markets, security is still at the forefront of any investor’s concerns. Established real estate firms in the region address these on a priority basis, connecting clients to flexible banks and financial plans that suit their needs more closely.

As the world’s eyes turn to Dubai and its rapid growth, investors are growing more interested in what its property market has to offer. Keeping a few of these aspects in mind will help the market flourish, satisfying both buyer and seller.


Source: Rakesh Mirchandani, Special to Freehold 
Director, KGR Real Estate


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