The liquidity of a real estate property refers to its ability to be quickly sold without significant losses in the original cost.
This parameter holds paramount importance when evaluating the potential of an investment property. Dubai real estate stands out because it is acquired not solely for habitation but primarily for investment purposes and subsequent additional income.
Simultaneously, the optimal way to save on a purchase or generate earnings in the future is to acquire real estate at the earliest stage – during the construction phase.
However, recouping your housing investment can be much quicker. With $400-500 thousand at your disposal, invest it in constructing a new property and sell it within a year, even if the building has not been completed. The law permits the sale of unfinished apartments if 30-40 percent of their cost has been paid (each developer may have specific conditions). Profits from resale can amount to 20-40 percent of the initial investment, particularly for an appealing and sought-after property. In this scenario, your funds will be safeguarded in escrow accounts, adhering to legal requirements.
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Incidentally, Dubai imposes no tax on real estate sales, and transactions can be conducted remotely. However, selecting the most lucrative property becomes the primary challenge for investors. Liquidity, as it turns out, is relative; even if an apartment is situated in an upscale area and carries a hefty price tag, its value may be undermined by the emergence of a newer, more developed residential complex, providing potential buyers with an alternative.
Hence, when discussing liquidity, it is crucial to differentiate between two project types. For swift resale, real estate should be acquired directly from the developer, prioritizing properties with the highest demand.
Objects intended for long-term investment, i.e., for rental purposes, are deemed liquid if:
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Illustrating the factors that contribute to the liquidity of a property, the Binghatti Venus residential complex in the JVC area serves as a noteworthy example. As new construction stages are completed, the demand for apartments in this skyscraper intensifies, capturing the interest of investors.
Among all the liquidity factors mentioned above, Binghatti Venus incorporates nearly all of the following:
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The design and architectural features of the residential complex enhance the liquidity of the apartments, with a stylish exterior resembling a luxury hotel and interior decoration featuring light marble, golden-hued decorative elements, and thoughtful lighting, creating a spacious and comfortable ambiance.