Yields in Dubai: 5 common myths about real estate investments
Most of the investors who come to our summits ask me first what the yields are in Dubai. I always reply that first of all it is important to discover and know the reality and mentality of the Emirate (I have dedicated numerous blog articles to this topic). However, the portfolio is important and so I decided to dedicate the next few lines to the answer to the much requested question. In a recent report by Reidin / Global Capital Partners , it is stated that over the past 10 years , Dubai investors have achieved a return of 120% on their real estate assets. This figure shows that, compared to other cities such as London (with 75% yield) and New York (with 63%), properties in Dubai represent a better and more profitable investment.
However, despite positive forecasts and important results, potential buyers may still be doubtful. To clarify these doubts, we have debunked some misunderstandings regarding real estate that are common among investors.
Myth # 1: In order to invest, you must have a high income
Many investors with large capitals have made a name for themselves in the real estate market. This has led others to believe that high revenues are needed to succeed in this market. Those who know investireadubai.com know that investing in an intelligent way is much more important. Even if you have small capital available, there will always be a suitable option. The returns in Dubai are great for everyone, if you invest in the right way.
Myth # 2: Success in investment is a matter of luck.
Although it is undeniable that a little ‘luck helps, to profit from real estate investment is much more than having good stars. The investor must perform extensive research to identify the best property, in the right position. After assessing the risks and buying a property at the right price, luck will focus very little on obtaining high returns.
Myth # 3: The Internet has eliminated the need for a real estate agent.
With the advent of the Internet, people have become more secure and prepared in every field. Nonetheless, just as you can not rely on Google to diagnose a health problem, you can not always rely on the web to find a profitable real estate deal. Even relying on a real estate agent or broker is often not the best solution, because most of these professionals are only concerned with cashing the commission. What to do then? Follow the advice of those who invest the money in the first person, just so you can get high returns in Dubai.
Myth # 4: Schools are not important.
You may not want to start a family right now, but the neighborhood where the property is located should influence the choice of whether or not you make a real estate investment. The position near a school, the workplace or parks is indicative of a good area. These features will prove useful if you want to rent the property, live or sell it at any time. For example, residential areas such as AKOYA Oxygen and DAMAC Hills offer residents and investors services such as schools, kindergartens, international golf courses, spas, supermarkets, banks, pharmacies and much more.
Myth # 4: After the 2008 economic crisis, real estate is not a good investment.
The secret here is to focus on the term ‘investment’. Just like stocks and other property investments, real estate has its ups and downs. Movements in this sector are gradual and more predictable than other types of investments. If you make a careful search, find the right property and keep it well over time, you are more likely to see it making a good profit. Moreover, this is a good plan even if the real estate investment is made as a home.