Last year, the United Arab Emirates once again secured a position in the top 10 countries for global competitiveness. The renowned International Institute of Management Development (IMD) compiled the rating, analyzing world economies based on 336 criteria grouped into four key categories: financial performance, entrepreneurial activity, government effectiveness, and infrastructure quality. The leaders of this list create ideal conditions for business development, ensuring rapid economic growth.
Understanding the significance for investors is crucial. A more competitive economy correlates with an enhanced quality of life, attracting a higher number of expats. Relocants stimulate housing demand, leading to an increase in the cost per square meter. Additionally, the rental market expansion offers investors lucrative opportunities.
Today, we will explore strategies for maximizing profits through real estate investments, using the Binghatti Onyx residential complex in Dubai as a case study.
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Dubai presents excellent opportunities for real estate investment. However, potential pitfalls may hinder new investors from optimizing their profits. It is crucial to devise a well-thought-out strategy to avoid missed opportunities.
Before entering a project, it is essential to decide on the future of the investment property post-purchase. Will you resell it in a growing market or opt for rental income? This decision significantly influences the choice of area and apartment type.
Dubai features both established and developing areas. Investing in emerging areas is more lucrative due to lower square meter costs and growth potential. Profit can be derived by acquiring property at a lower price and selling it when values increase. Purchasing at peak prices poses the risk of not only missing out on profits but potentially incurring losses.
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The Binghatti Onyx skyscraper will be situated in one of Dubai’s fastest-growing areas – Jumeirah Village Circle. While current real estate prices remain moderate, the active development in the community predicts a potential 38% increase in local housing costs. Over the past year, prices have already seen an 8.6% rise.
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The anticipated average return on such properties is 6%, equivalent to $15,781 per year.
