Tips To Reduce Real Estate Investment Risks In Dubai!

Market Analysis

This is a very important step to avoid risk in Dubai real estate market. It is very necessary to learn about the real estate market of different communities in Dubai. You should aware of the fact that the Dubai property market itself is divided into small markets based on property types, special features & amenities and price. For example, the real estate market of Dubai South is very different from the Downtown Dubai property market.  

At Dubai South, you can buy Emaar Expo Golf Villas in 3, 4 & 5 Bed Configurations with starting price of AED 1.1 Million. On the other hand, in Downtown Dubai, you can buy Studio, 1 Bed, 2 Bed & 3 Bed Apartments at the price of AED 2 Million. And if we talk about ROI then both regions have the same ROI but with a huge price difference in property value. 

So, it is very necessary to evaluate the price & ROI by deeply analysing the market before investing a huge amount in Dubai real estate. Always keep in mind, the current & future trends and expected appreciation, infrastructural developments & future developments in your preferred location.

Geographic Diversification

Every region & community in Dubai has its pros & cons, for this, you can read our special series of pros & cons of investment in different communities. This series of blogs will give you a proper insight into different communities with current trends.

After this, what you can do is - invest in some of the best communities. Investing in different communities can divide & reduce the risk. But before investing in multiple communities or locations, we advise you to perform good research and check the past & current real estate trends and future probability.

Asset Diversification

This is the best way to reduce the risk or risk impact, no matter where you are considering investing. 

Now question is - how can we apply this strategy in real estate investment? 

You can apply this strategy by investing in different properties (if it is possible) and earning fixed rental income & expecting good ROI. Suppose apartments in Dubai are not providing you with good rental income then you would be still getting excellent rent from other villas or townhouses. If at this time one of your properties in Dubai is not performing good in ROI then definitely your other properties in Dubai performing well in ROI. 

Developer Credibility Check

It is very important to check the credibility of the developer, especially their reputation in the market and review their previous developments. According to experienced real estate investors in Dubai, “you must carefully check the background of the developers and talk to their previous clients and listen to what they say about construction quality, property buying process and after-sales services by that particular developer.” It is also very important to check the ownership of the land where the development is built by the developer. 

You can easily check many things on the internet. A developer can mislead you about construction quality and ratings but there are many sources on the internet where you will get unbiased information, facts & figures. 

The Dubai DLD website is the best source of information, where you can get the best information. There are many real estate developers in Dubai that are reliable and we can invest in their developments without any doubt mind. These real estate developers are:-

• Emaar Properties
• Damac Properties
• Sobha Realty
• Nakheel Tilal Al Furjan Phase 3

These real estate developers have not only built many big & best communities but also numerous top attractions in Dubai. 

Even though it is very rare in Dubai that construction is postponed or delayed but when it happens, investors have the complete right to claim & get compensation from the developer. Under these circumstances, the developer may offer a rebate or offer some extra services to the investors.

Evaluate Your Time Horizon

Last but most important point in this blog. One thing you should keep in mind before real estate investment is whether you are investing in Dubai real estate or anywhere else in the world, you need lots of patience. If you can hold your real estate investment for a long time then the downside risk of cyclic pitfalls can be excellently avoided, and you can exit at a good time with a high appreciation in your hand. Hence, we recommend you access the risk appetite and wait for a good time.

Conclusion

To avoid the risks of real estate investment in Dubai, you must follow these upper-mentioned points. Investment in real estate comes with some potential risks, but in Dubai real estate you can perfectly avoid these risks & threats. But here we advise you to contact real estate investment experts who can advise you and find the best investment opportunities in your budget & expectations. 

Dubai Housing is the name of a real estate investment expert in Dubai with countless options in off-plan developments at freehold areas from reputed real estate developers. If you have any questions or doubts in mind then feel free to contact us.