Objects with Liquidity in the Dubai Market: Liquid Real Estate Categories 

9:58 pm  |  28.01.2024

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.

In general, investments can be either short-term or long-term. If you don’t plan on relocating to the Gulf Coast in the near future, the acquired apartments can be leased, ensuring a stable annual income ranging from 7-12 percent.

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.

READ: Changes in the Real Estate Market in Dubai: How to Stay Informed

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.

Distinguishing Liquidity in Two Types of Projects

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:

  1. Located in tourist areas such as Downtown Dubai, Dubai Marina, JVC, and others.
  2. Situated in a location with a well-defined and comprehensive infrastructure development plan.
  3. Constructed by a leading developer with a renowned name and a solid reputation. Such properties in Dubai are known to sell faster and at a higher price.
  4. They are positioned in new buildings (less than ten years old), eliminating the need for renovations soon.

READ: Prices Are Rising in Dubai: New Apartments and Projects To Be Completed By 2026

Liquidity Factors for Real Estate in Dubai

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.

Binghatti Venus Residential

Among all the liquidity factors mentioned above, Binghatti Venus incorporates nearly all of the following:

  1. A well-established infrastructure, including additional amenities like jacuzzis and barbecue areas.
  2. The ideal location of the JVC area provides seamless access to transportation and essential amenities.
  3. Binghatti’s developer reputation is impeccable, marked by the absence of negative aspects, and consistently delivering projects on schedule.
  4. Repairs for Binghatti Venus are likely unnecessary for an extended period, owing to the use of modern materials and reliable innovative construction technologies.

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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.

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