In Dubai, the remote conclusion of all transaction stages is legalized. To invest, the client does not need to fly to the UAE.
The Danah Bay complex is located on an island where a casino is promised to be built by 2026. The object has huge investment potential. Yield of 200% for 4 years, the minimum investment is 44% of apartments worth $770,000.
Investing in real estate at the pre-launch or off-plan stage is more profitable. Once the developer announces the project, it’s best to act quickly without hesitation. Typically, prices for real estate at this stage have increased by an average of 30-50% by the time construction is completed.
Imagine purchasing an apartment during its pre-launch stage for $286,000, only to see its value rise to $327,000 on the secondary market. How did this happen? The answer lies in the property’s beauty, the reliability of the developer, and its prime location. Early investors who quickly seized upon the opportunity were able to capitalize on the project’s potential, leading to increased demand and subsequently, an increase in price. Others are now also considering investing in the project.
But we must understand that not every project is successful. It happens differently – a real estate broker tells the client that the project is worthwhile. He buys it, and two years later they can’t sell it. This could be due to various reasons, such as the house not being commissioned, the controversial location, or the lack of infrastructure development. Exiting such a project with a profit can take much longer, often 3-5 years after construction is completed. To avoid such situations, it’s crucial to select the object before investing carefully.
Investing in hotel apartments in Dubai is a wise decision due to the high demand from tourists and the potential for profit. The emirate is one of the most visited locations in the world, with billions of dollars being spent by tourists. Hotel occupancy rates in Dubai are consistently above 90%, and during peak season, prices can reach up to $1,000 per day for an average hotel room. Therefore, investing in hotel apartments can be very lucrative, as developers often sell them for more than ordinary apartments.
The SLS and Ciel hotel apartments are particularly profitable, with a potential profit of 7-12% per annum and a 7% guarantee for 10 years. The minimum investment for these apartments is 44% of apartments worth $285,000.
Investing in hotel apartments can be compared to purchasing a commercial property, as it is a reliable asset with a high return rate of around 8-15% per annum. Many companies selling hotel rooms promise guaranteed profits, even if the hotel only earns 7%. For instance, if the developer gives the buyer an 8% profit guarantee, the hotel will pay an extra 1%.
Large chains like Hyatt, Accor, and Marriott typically enter this format. They do not own their own rooms but simply manage existing buildings. During operation, hotels usually take 40-50% of the revenue to cover expenses such as cleaning and intermediaries like the Booking booking service.
If you own an apartment on the third floor of a 100-story tower and the hotel has few guests, the profit-sharing method used by the hotel is to divide the remaining 50% equally between you and the owners of the most popular apartments on the top floors, regardless of which rooms were occupied more. This is done after the hotel network services have been paid for, and 50% is divided into shares.
To earn a 35% yield over a 10-month period, you can consider investing in complexes located in JLT (Jumeirah Lakes Towers) and Dubai Hills. However, please note that the minimum investment required is 34% of the total cost of the apartments, which is $7,400,000.
The role of a real estate broker is not limited to helping a client choose an object. Real estate transactions in Dubai usually take place in several stages.
— Selecting an object. The broker should find out about the most interesting offers that developers intend to announce in the near future. Next, the client should see several objects – those that will soon be in pre-launch, and those that have recently gone on sale.
– EOI (expression of interest) in the amount of 5.5 000-11 000 dollars (usually up to 5% of the cost of the apartment) allows you to choose apartments before the announcement of the start of sales.
– Booking Confirmation. The buyer transfers to the developer’s account from 14 to 24% of the cost of the apartment.
— Sale And Purchase Agreement. The contract specifies the payment plan. Some companies after the completion of construction give buyers up to two years to make the final payment.