Real estate investments has produced more wealth than any other industry in our history and now more than ever there are many options one could choose from to generate significant profit from real estate investments. However, new investors are bit skeptical about entering Dubai’s real estate market thinking that they require a huge capital to start with in order to compete with the big sharks but this is far away from the truth, in fact you could view our articles on “7 Real estate investment that cost less than a million” & “6 affordable luxury apartments in Dubai” to have a look at some of the price ranges.
Now in-order to show you different options that you could choose from to quickly regain your initial investment, we listed a short list of our top picks on how you could make profit from real estate investment.
Traditional Rental Income:
A traditional rental income can come in many forms, real estate investors can make consistent income by owning apartments, villas, family homes or townhouses. A key point that we always emphasize on when guiding a client to purchase a property with the intent to rent it is to pick a location that generates high rental yields, an example of such area in Dubai is Business Bay or Downtown Dubai.
There are some other minute details that we also look at, the landlord for instance needs to plan what kind of tenants he/she is hoping to have from an early stage, this way if the landlord is targeting small families, he/she could furnish and choose a location accordingly making it much easier later to get tenant at a much profitable rental rate.
House Flipping Business:
Even though not so popular in Dubai, house flipping has always been a major real estate tactic in which lot of investors leverage. The way it works is pretty much direct in which real estate investors buy properties which have the potential to be sold at a much higher price after some renovation. One of the main points you should keep an eye on is the cost of renovation as it must be kept minimal in order to generate most profit reselling the unit.
Commercial Real Estate:
People will always need offices and retails for their businesses, that is why commercial real estate will always be a viable business model for those interested to make profits renting their property to other businesses. There are both pros and cons for this business model, for instance businesses tend to stay longer at a certain location unlike residents so it’s more stable but on the other hand commercial properties require lot of maintenance and upgrades.
Vacation rentals is very attractive in cities that attract lots of tourist, these areas are known for having high demand for short-term rentals for vacation. A vacation rental business model is basically renting out a furnished property whether it is a small apartments or a seaside villa to tourist as an alternative to a hotel. This real estate model was made popular today by the rise of vocational rental sites and apps like Airbnb, which profit from having a higher turnover rate. An Airbnb rental property can be more profitable than traditional rental income property if the location chosen is a hot tourist spot or suitable for business trips. Location is the main factor in order to receive the highest income from Airbnb rentals. The best part about vacation rentals is that you don’t have to be committed, you could even rent you own house during vacations when you are out of the country.
Off plan resell:
In this business model investors buy projects that are under construction with the sole purpose of reselling them once the project is completed. These projects usually sell rapidly and at higher price to overseas buyers, there is also a great potential from reselling to local buyers.
An interesting fact about this model is that investors buying an off plan property can only pay a minimum deposit amount of around 10% of the actual unit price, this means investor can start with a small capital and profit when the project is ready and the market price increase.
This is a concept where the landlord rents his furnished property to a company and not an individual, such property will usually be equipped with services and amenities of a hotel. Company’s use these properties to keep employees, celebrities, investors and such people who are on a travel and staying in the city for a short time period. It is believed that corporate renting can earn more when compared to regular renting if done right.
We hope that this small list was informative and gave you a general idea on how you could make profit from real estate investment, if interested in investing in Dubai’s real estate market, feel free to get in touch with one of our expert agents by clicking in the “Book a meeting” button below or use the chat box to write us your enquiry.
Enter your subscription information.
Your details have been sent
Our manager will contact you during the working day.