Dubai’s real estate market is growing dynamically for the third consecutive year. In 2022, the price index for residential properties rose by 98%, and sales increased by 67%. In 2023, price growth slowed, but experts predict that the market has not yet exhausted its potential and that real estate in Dubai will be attractive to investors on the horizon of two to three years.

Benefits of investing in Dubai real estate

In 2022, international companies have started looking at the UAE real estate market, and some have already entered projects and started construction. The right thing to do is for those companies that enter an unfamiliar market in partnership with the largest local developers.

For example, in promising locations, the master developers of which are Emaar or Nakheel, there is an opportunity to buy the whole building from time to time. Thus, an investor can get at his disposal an exclusive offer in the market and exit the project closer to the completion of construction or after the delivery of property for sale in the business bay with a yield of 20-30% per annum.

The strength of such a scheme is safety: the risk of losing money with this approach is very low. In addition, it opens up the possibility of establishing strong connections with the largest developers in the Middle East, which gives Russian builders access to exclusive lots in the most sought-after projects. Under the partnership scheme, developers can easily establish contacts with agencies if they want to buy property in downtown Dubai.

The disadvantage of this approach is that the developer will earn 10-15% less than if he acted independently, but the lost profit is a safety fee. In partnership with a strong local partner, a newcomer will not make mistakes that could lead to loss of money.

The possible risks and profits ratio in such a scheme is very attractive. Also, Arab developers, as a rule, do not burden foreign partners with intrusive attention and do not try to control all aspects of the business.

expensive property
Expensive property

Return on investment in real estate in Dubai

Developers who carefully assess the risks, understand the attractiveness of this model, and look for opportunities to enter the most interesting projects: in some cases, they buy the whole building, in others – a few floors. In both cases, they count on discounts, which make such investments even more profitable when apartments are sold at retail.

For private investors who choose one or more lots to diversify their investments and are interested in a quick payback, the Dubai market also has interesting opportunities, such as home staging, which increases the object’s attractiveness and, therefore, the selling price.

Experienced designers and architects have very strong competencies in Home Staging, and their expertise is above average in the Dubai market. Many companies have already engaged in Home Staging here. For this purpose, premium properties are selected in established neighborhoods with high demand in the secondary market.

The broker’s task is to find the minimum-priced lot, combining a good location, high floor, direct access to the water, or other advantages. The best option – if the low price is due to the poor condition of the interiors, but it does not require investments in the renovation of utilities or load-bearing structures.

A team of builders, architects, designers, and marketers brings such property to a state that best suits the needs of real estate buyers in the area, their tastes, and their lifestyle. Once the project has been prepared and work has begun, the broker proceeds with the sale of the property. Very often, the sale takes place before the renovation work is completed. The return on such investments can range from 50 to 100%.