Resicom – Holiday Investment – 04-21 – LB

Real Estate Deals to be had in Dubai

As the property market struggles there are plenty of real estate deals to be had in Dubai at the moment.

But with price valuations at their most attractive, how can you make sure that you get the best real estate deals?

Pawan Batavia, CEO of Synergy Properties, advises: ‘It is important to look at the market from a long-term perspective to truly understand the value and strategic importance of the current phase of the market.

He continued: ‘The long-term story on the Dubai growth, with the current infrastructure, spends, Expo 2020, the changes in rules recently, will surely have a very positive impact on the overall situation at a macro level.

Many property experts believe that the property market in Dubai has reached its bottom, and with Expo 2020 less than two years away, now is a great time to get the best real estate deals in the emirate.

After a period of off-plan incentives and post-handover payment plans where off-plan transactions comprised nearly 70 per cent of the market last year, Dubai is starting to see a recalibration towards the ready market, and one where there is sensible demand for mid-range properties.

Sameer Lakhani, managing director of Global Capital Partners, reckons that a good yardstick for the right deal would be to compare market values to the replacement value – what it would cost to make the same unit given current prices of land and construction.

He said: ‘In the boom days, the market value/replacement value ratio for the city was around 1.4-1.5; in luxury communities it was above two. Currently, there are a number of communities where the market value/replacement value ratio is below 1.2 and in some cases is approaching 1.

For overseas property investors looking for real estate deals in Dubai, there are a list of dos and don’ts to help with your quest.

 Dos and Don’ts for Overseas Property Investors

  • Do – have a clear picture on the market, work with the right people from the finance through to the agent.
  • Do – make sure that your finances and job or business are stable before over-committing yourself.
  • Do – have a clear understanding on any distressed real estate deals that the property is distressed for a very particular reason.
  • Do – have a very clear understanding of what you want in a property before going out to purchase.
  • Do – check the quality of the developers and their track record when investing in off-plan.
  • Don’t – engage in any transaction without checking if the property has outstanding penalties or fines.
  • Don’t – invest with unstable developers, especially those not approved or registered with Rera.

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