Why the real estate sector of Dubai is significant?

The property market in Dubai has always attracted worldwide investors, businesspersons and high net worth individuals. The city has become a property investment capital with its skyline still developing and using the infrastructure that is of top-level internationally.

This has been precipitated by its clean reason being; zero income tax, safe regulatory systems and big rental yields, which have attracted huge foreign interest. Throw in a constant stream of expats, investors and tourists and you have a formula not repeated in any other place that demands property.

However, to make money out of this demand, it is important to learn about market dynamics. High-performing real estate businesses in Dubai do not only sell the properties; they put themselves in a situation where demand is going.

Gains Experienced in Knowledge of Market Demand Driver in Dubai

1. Expat influx & Population Growth

The population of Dubai has exceeded 3.6 million and has been swelling at a high rate. This is aided by the high number of expatriate population who migrate in seeking employment and business related opportunities. Increasing the number of relocations accrues demand of any type of property including rented and owned.

2. Foreign Investor Interest

The real estate market in Dubai thrives on customers who are of foreign nationalities, such as the Indian, Russian, Chinese and British citizens. The city is a safe investment and the Transparent laws and ROI make it very attractive.

3. Government Initiatives

The government of the UAE maintains required demand in the real estate market with visionary policies. Systems such as the UAE Golden Visa provide abidance to the investors and proprietors of properties in long term. Furthermore, introduction of freehold property zones will enable foreigners to own property in certain defined zones completely- this is not common in this part of the world.

4. Major Compete & Economic Vision

The Expo 2020 has endorsed quite a legacy, raising international awareness as well as the level of investor confidence. Demand in the UAE in the areas of property is expected to increase, even more as vision 2040 is concerned, in the field of urban and economic growth.

DeterminingLucrative Property Funnels

1. Residential Properties

The diversity of residential units in Dubai is immense, which allows the placement of affordable apartments in Jl Vizzi City to luxury villas located in the Palm Jumeirah. There is a great demand for family friendly communities and rental-friendly apartments in central places such as Business Bay and Downtown Dubai.

2. Commercial Spaces

There are needs of offices spaces and retail outlets which appreciate even more in free zones or mixed-use developments. Commercial leasing is changing and proliferating with the emergence of startups, and distributed workspaces.

3. Luxury & Water Video Properties

Residences in such locations as Dubai Marina, Palm Jumeirah, and Dubai Hills Estate are still appealing to the ultra-high-net-worth individuals. These regions can only be associated with exclusivity and capital appreciation over a substantial period of time.

4. Ready Properties vs Off-Plan properties

There are also lower entry prices and better appreciation value in the off-plan properties, more so in the early investors. The meanwhile delivery ready-to-move-in units present immediate supply of rental income which entails the interest of yield-oriented purchasers.

Market Research: Tools and Tactics

• In order to remain competitive in the Dubai real estate industry, one should engage in constant research and information monitoring.

• Research price developments, rental returns, and hot zones by using such sites as Bayut, Property Finder, and Dubai REST App.

• Reports published by DLD (Dubai Land Department) and Knight Frank can be used to tap in on market outlooks.

• Talk to brokers and developers directly in order to obtain front-line information regarding planned roll-outs and buyer attitude.

•Look in areas that exhibit demand-supply imbalances- such areas tend to have the most appreciation possible.

Principal Investment Principles to Make Profit

1. Buy-to-Let Model

This is among the most lucrative and most common practices in Dubai. Rental yields of properties in highly expat populated locations such as Dubai Marina, JLT, and Silicon Oasis could give a rental yield of between 6-9% per annum.

2. Property Flipping

One can make fast returns by buying cheap or off-plan properties, undergoing amelioration and selling at an excellent price. A market timing, capital and renovation expertise is however necessary in this strategy.

3. Off-Plan Investments

Investors who purchase in off-plan projects early tend to get lower prices of purchase and huge appreciation of the value over the period of completion in such a project developed by a reputable developer.

4. Invest in Your Portfolio

Rather than being an expert in one, spread out into asset classes (residential + commercial) and geography. This diversifies your risk and enhances stability of ROI.

Legal and regulator issues

As an organization that operates in the real estate sector of Dubai, regulations that must be followed are laws established by RERA (Real Estate Regulatory Agency) and DLD.

Licensing: In case you are establishing a broker, you also need to have a license of the real estate brokerage awarded through Dubai Economy & RERA.

Ownership Laws: Whilst foreigners are prohibited to own land everywhere, they can own property in freehold areas.

Compliance: The developers should abide by the rules of escrow. Brokers should hold a certification of RERA.

Have ready trust account policies to follow and make sure that you always check your transactions through official DLD channels in order to keep your trust account and prevent penalty.

Your property business should have high visibility Marketing Your Property Business

The market in the real estate industry in Dubai is competitive thus powerful marketing becomes imperative.

• Create a professional SEO-optimized web, with listed features and lead capture.

•Exploit social media such as Instagram, TikTok, and YouTube by using them to present listings and stories of success.

• Put their property on portals, i.e. Bayu, Dubizzle and Property Finder.

• Conduct virtual tours and webinars to access clients and investors in other countries.

Successful agencies are usually marked by a good online branding.

Forging bonds with developers and investors

The property ecosystem of Dubai is relational.

• Liaise with reputable developers such as Emaar, Damac, Sobha and Nakheel to access special inventory and lump purchases.

• Sign up in networking events and real estate exhibitions such as Cityscape and meet investors and decision-makers.

• Provide value-added services such as property management services, legal assistance and relocation services to become a one stop service provider.

• Such relations are great not only to increase your commissions but also to increase your long-term credibility.

How to Scale Your Real Estate Business to Long Term Success

After your real estate business is up and running, and it is profitable, work on scaling:

• Employ RERA certified real estate agents and commit into perpetual training.

• Introduce CRM systems and real estate technology to manage leads and pipelines and automate on its basis.

• Right now diversify operations to other emirates such as Abu Dhabi or Sharjah where there are more investor friendly property laws.

• Monitor the upcoming trends in regulation and consumer behaviours closely in order to change your strategy.

Conclusion: 

Dubai property market is a gold mine, and it is only those who enter into that market with a clear strategic vision and understanding of the regulations who are likely to ride the waves. Knowing how to motivate demand, identifying and capitalizing on profitable niche, using technology and partnerships can be the difference between a quick victory or a long term winning period.

It is high time you make a move as an investor, agent or an entrepreneur. In Dubai the property business pays off to those having the sense of doing it and doing it on time.

Looking to start your real estate business in Dubai? Reach out to Bizex today to get professional business establishment services, license acquisition and market entry strategy.