Prices are expected to rise in the medium term
"Mediterranean Star": The perfect timing to start a real estate investment in Dubai
The return on real estate investment in Dubai is high compared to other cities.
Photography: Patrick Castillo
Marwan Al-Sheikh: “The average rate of return in the real estate market is between 8% and 10% in most cases.”
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CEO of Media Star Real Estate, Marwan Al-Sheikh, said that the current period is the ideal time to start investing in the real estate market in Dubai, thanks to the opportunities for price growth in the medium term.
Sheikh added to "Emirates Today", "With the increase in the volume of projects and businesses in Dubai, citizens and residents, as well as foreign investors, began to enter the real estate market in the emirate."
price improvement
He explained that this momentum increased the price improvement more than a year after the lifting of the closure, as the success of vaccination campaigns began to bear fruit in targeting more residents of the UAE, noting that “by studying market trends, it is expected that prices in the market will rise.” Real estate only in the near future.
quality of life
He pointed out that the UAE is characterized by the quality of life in light of its commitment to high-level economic standards, and the provision of high-quality products and services, which makes the end user feel reassured and safe, which increases the momentum of the real estate sector, buying and selling.
return on investment
The Sheikh stated that the return on real estate investment in Dubai is high compared to other cities, indicating that there are two things that the investor must take into account when planning a real estate investment in view of the investment return. Will the investment yield a profitable return in the long term?
The second thing is capital growth, i.e. the increase in assets or investment over time, which is measured by the difference between the current market value of the investment and its price at the time of purchase.
He added that the average rate of return in the real estate market in most cases is between 8% and 10%, pointing out that Dubai is more open and attractive to investors in this sector compared to the rest of the Emirates.
cash or finance
Regarding the preference of buying real estate with cash or financing, the Sheikh stated that buying real estate with cash is much better compared to buying through real estate financing, explaining that buying through cash payment will give a better investment return, compared to buying through real estate financing.
He considered that purchasing through real estate financing can affect the return on investment, as there will be discounts such as monthly interest rates and late payment fees.
Return Calculation
Regarding the methods of calculating the return, the Sheikh indicated that the return on investment is calculated by taking the total amount of rent, and subtracting all expenses, such as repairs, maintenance, insurance, electricity and water fees, taxes and all other applicable fees, then the result is divided by the total amount.
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