Top 3 Locations to Buy a House in Dubai You Need to Check Out!

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Buying a house in Dubai may be one of the best investment decisions of your life. People from all around the world move here, which is why 85% of Dubai’s population is made up of foreigners and expats. Also, thanks to the city’s booming real estate market,  property prices are low, while rent remains high. That means if you are planning to live here, buying a house makes more sense than renting. On the other hand, you can also buy a house through one of the Dubai top real estate companies and use it to generate rental income.

No matter what your goals are, if you are planning to buy a house, make sure to contact a reliable agency real estate Dubai to find a property in one of the nice neighborhoods. If you are making a list of the ideal locations, here are a few top choices that you should consider:

Downtown Dubai

If you find yourself standing in front of Burj Khalifa, the tallest tower in the world, know that you have arrived at Downtown Dubai. As the Dubai top real estate companies would tell you, Downtown is one of the most sought after locations to buy a property in the city. You will find the best and most lavish properties here. Famous for its upscale communities and high-rise buildings, Downtown also possesses various other well-known attractions such as the world’s largest shopping mall and the world’s tallest performing fountain. Since it is situated right next to the Sheikh Zayed Road, Downtown is considered as the center of the city.

Types of properties you will find here and their prices

Ask any agency real estate Dubai, and they will tell you that Downtown is all about high-end and luxurious apartment towers. There is always some exciting new developments taking place here, and there is no dearth of residential apartments in the area. If having a scenic view is important to you, make sure there are no future developments planned around your property to block your view. Property prices tend to be high in Downtown Dubai, and they might even be the highest in the entire city. A one-bedroom apartment here might cost around AED 1,100,000 or USD 381,139.

Popular projects in Downtown Dubai

According to the Dubai top real estate companies, the most popular projects in this area are:

  • Burj Khalifa
  • Burj Vista
  • The Lofts
  • Act One
  • Downtown Views
  • The Residences

Jumeirah Village Circle

If you have always wanted to live in a modern village setting, most agency real estate Dubai will recommend Jumeirah Village Circle. Situated far away from the hustle and bustle of the city, this will be the ideal location for you if all you want is a peaceful life. Jumeirah Village Circle is famous for its lavish townhouses and villas. There are around 3,100, townhouses and 2,800 spacious villas here with tons of green spaces separating each block. You will also find all the necessary amenities here such as community centers, sports fields, schools, and parks. Being only 25 minutes away from the Dubai International Airport, Jumeirah Village Circle is also a convenient location.

Types of properties you will find here and their prices

At Jumeirah Village Circle, you won’t find many high-rise towers or buildings. Dubai top real estate companies might show you apartment projects such as Belgravia Heights and Belgravia III, which are no more than 4 to 5 floors high. However, some high rise building projects are currently taking place in the area if you are interested in them. You can also find four-bedroom villas that have three terraces and a spacious garage that can fit two cars. Such a villa might cost you AED 2 million or around USD 600,000.

Popular projects in Jumeirah Village Circle

Some exciting real estate projects in the area include:

Jumeirah Lake Towers

As any agency real estate Dubai will tell you, this location has the largest concentration of high-rise towers in the city. Situated right across the Sheikh Zayed Road, Jumeirah Lake Towers is also close to Dubai Marina. There are around 80 mixed-use towers and apartments in the area, and you will also find several hotels. It is a densely populated residential area, which is why you will find plenty of entertainment options and necessary amenities such as hospitals, schools, supermarkets, shopping malls, and restaurants. Ideal for families, Jumeirah Lake Towers attracts a high number of expats. The expat population of Dubai prefers this location because it is so close to the neighboring commercial areas.

Access to transportation is also great here. You will get Dubai metro and roads that connect to Abu Dhabi. On the other hand, if view is important to you and you have always wanted to live near water, you would not need to get a beachfront property. Jumeirah Lake Towers has four artificial lakes surrounding it. The lakes are strategically placed between the residential projects. Also, thanks to the green spaces and big parks, the area looks and feels much less congested and crowded than other parts of the city.

Types of properties you will find here and their prices

This location is known for luxury apartment projects. However, you can also find several different types of apartments such as hotel apartments, serviced apartments, and penthouses. You will also find some exciting off-plan projects here. If you are wondering about the cost, you should know that a one-bedroom apartment might have a price tag of 0.5-1 million AED and penthouses might cost 4-6 million AED.

Popular projects in Jumeirah Lake Towers

Some of the most popular projects in this area include:

  • IGO 101 Tower
  • Banyan Tree Residences
  • Seven City
  • MAG 214
  • Dubai Arch
  • Bonnington Tower

If you want one of the Dubai top real estate companies to help you out in your search for the perfect house, make sure you get in touch with RiseUp. Being one of the leading real estate companies in Dubai, RiseUp can offer you the guidance you need!

What To Consider Before Investing in Dubai Real Estate

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What You Must Consider Before Investing in Dubai Real Estate

Want to invest in Dubai Real Estate, but feeling a bit apprehensive? You are right to proceed with caution, especially if you are a novice in this field. Investors who do not have real estate experience might get carried away and take unnecessary risks. However, when it comes to a stable and booming market such as real estate in Dubai, you have little to worry about. As long as you consider the following key factors, making the right decision will become a piece of cake. These five steps will not only help you choose the right property, but they will also set you up on the path to success as a real estate investor in Dubai.

  • Your objective behind investing in Dubai Real Estate

Before you start looking at potential properties, make sure you have a clear objective in mind. Most investors focus on the return on investment, be it through long-term capital gain or through an annual yield. The Dubai real estate market is versatile and flexible. It can accommodate the needs and objectives of both seasoned and novice investors. All you have to do is analyze what you want and decide your next steps accordingly. Do you want to buy a vacation home? Or, do you want to buy a luxury villa that you can rent out to make a sustainable income? Once your objective is clear, you will know where and how to invest.

  • The location can make all the difference

When it comes to real estate, location is everything! It is even more important to those who are looking for an investment opportunity in Dubai Real Estate. Of course, a great location means a hefty price tag, but it also means high property value, which makes it a great asset for any investor. The better the location, the higher the return on investment. However, simply choosing a popular location might not fetch you the desired outcome. The location you have chosen must also support your overall objective. What you intend to do with the property should tell you where it should be situated.

  • A clear understanding of market trends is necessary

Researching and analyzing market trends and stats is perhaps one of the most important steps that you must take care of when you are planning to dip your toes into the pool that is Dubai Real Estate. You need to educate yourself by reading up on investment patterns, current trends and future predictions. When you are confused about which location will fit your objective the most, this particular research will come in handy. You will also get to know about investment terms and other aspects that you may not have known before, and this knowledge will prove to be invaluable as you go forward.

  • The difference between expenditure and investment

Once you have taken care of the factors mentioned above, it is time to get your finances in order. At first, you need to look at your spending and savings patterns, and then do some math! Figuring out exactly how much you can afford to invest in a particular property can seem daunting. However, it is easy when you know a simple formula.

For example, if you are planning to invest and then put the property on rent, you will need to subtract the cost of taxes, maintenance, repairs, and insurance from the rent you are expecting. The sum you will be left with will be your profit or cash flow.

On the other hand, if you want to use the property as your home or holiday home, you will have to subtract the price of the property and your monthly expenses from your yearly income to figure out your cash flow.

The exact figure will certainly depend on your objective as well as the state of the market. However, internationally renowned markets such as Dubai real estate tends to produce a higher ROI than others, generally in the range of 6 – 8% per annum.

  • Guidance from the best real estate agent

Hiring a competent real estate agent is the final step in the preparation stage. No matter how well you have studied the market, it cannot compare to the industry experience of a professional. You need the assistance of someone who is familiar with the trends and developments in Dubai Real Estate. Only a reliable real estate agent can help you make the most of your investment.

With these factors in mind, you should be ready to take the plunge. Take advantage of the post-pandemic boom, and make the most of your money.

Get the best investment advisory services in Dubai from our experts at RiseUp Holding.

FAILURE RATES AMONG DUBAI’S ESTATE AGENTS ARE WAY TOO HIGH

What does it take to be a successful agent or agency in the Dubai real estate market?

As of 2016, there were 5,933 active agents in Dubai market with a total of 2,285 registered offices as per a Dubai Land Department report from that time. Currently, there are 2,672 active agents and 969 companies in the market, based on September data from a private real estate portal.

That doesn’t mean all the agents or companies in the market are on that portal; so let’s consider another 20 percent agents and companies are operating.

Aakarshan Kathuria
Aakarshan Kathuria – Managing Director (RiseUp Holding)

As per our best guesstimates, there would be about 3,200 active agents and about 1,160 active companies. That means for every 2.75 agents, there is one real estate company. Odd metrics, right?

Well, one of the reasons for this is that anyone and everyone who thinks real estate is an easy business feels obliged to open their own company. The majority do end up failing.

I would go as far as saying that perhaps from this list of active agents or companies, only about 25 percent are aware about the regulations in the real estate industry and performing to their true potential. Let’s not talk about the 75 percentile, let’s talk about the 25 per cent who turn out to be successful.

WEAK ON BASICS

The job of a real estate agent in Dubai or globally is not easy, period. I’m not saying any other job is a walk in the park, but for an agent, like any other sales role, it’s all about the income they are able to generate that dictates their take-home.

WHAT DOES IT TAKE TO TASTE SUCCESS?

The barrier to entry for this role is low, which results in many aspiring individuals having a misplaced perception of this role as a money-generating machine that requires limited input and knowledge. A majority don’t have a basic knowledge about contracts or legalities.

While the most important aspect of this field is to understand how to deal with clients, which one can only learn on the job or through training, clients appreciate agents who have their basics in place:

● Understand the basic calculations of investment, rental yield, service charges, mortgage payments, gross and net income; so you can guide your clients better.

● Understand how to draft and review contracts that your clients are signing as a lot of bad investments can be credited to weak contracts.

● Understand the legality of transactions, how to best protect your client interests, and what fail-safe procedures to implement in case something goes wrong.

These are some of the basic principles that are so vital, but easily ignored by that 75 percentile of agents.

Source: Gulf News – Written By Aakarshan Kathuria

THE MATH BEHIND A HOME INVESTMENT in 2021

I often get asked about HOME INVESTMENT, “I’m earning Dh20,000 per month – can I buy a property in Dubai in 2021?”

My answer is determined on a stream of questions which is what I’m going to elaborate on. There are more factors that come into play when determining if we are able to buy a property than just our income. All these aspects are different for every individual.

For argument’s sake, let’s consider a purchase through bank financing, as most buyers are looking for a mortgage when buying ready properties. As a starting point, an income of Dh20,000 per month certainly crosses the minimum threshold to obtain a mortgage.

Generally, your monthly salary needs to be 4x higher than your monthly mortgage payments, which can further vary based on current liabilities. There are a few requirements the bank will ask to get started on the pre-approval.

● Salary Certificate

● Six-Month Salary Slip

● Six-month Bank Statement

● Loan Application Document

● ID Copies

Depending on the bank, the pre-approval validity can vary between 30-60 days and the cost from Dh500-Dh1,000. Once the pre-approval is in hand, make a point to understand how much the bank will lend and how much down payment to have in hand.

This pre-approval helps get immediate offers on distress assets that might be in the market for a short period of time. With a pre-approval, the seller gains more confidence in your ability to obtain the required finance to buy a property.

FIXING THE RATE… OR NOT

Since bank lending can go up to a maximum of 80 per cent, the buyer should have in hand 27.5 per cent of the property value to cover the down payment and all transfer-related expenses. At this point, decide if you want a fixed rate or a variable.

If the pre-approvals are sorted and based on the mortgage type, let’s start onthe fun part – property hunting.

HOMING IN

Based on a salary of Dh20,000 and not having any other liabilities, the bank will lend about 40x the monthly salary, which means Dh800,000. Since that is the maximum lending amount, let’s consider it to be 80 per cent of our target property value, therein allowing us to buy a property of up to Dh1 million.

The down payment along with closing costs would be about 27.5 per cent, which would equate to Dh275,000 out of which Dh200,000 would go towards down payment and Dh75,000 on closing expenses related to Land Department fees, the no-objection certificate, agency costs, mortgage registration, valuation and processing.

Let’s calculate what will the monthly repayments will be. Let’s consider we opted for the fixed rate mortgage for 20 years and at an interest rate of 3.5 per cent. Based on our borrowing of Dh800,000, we are looking at Dh4,640 a month, which is principal plus interest payment.

ADDING UP THE COSTS

On a two-bedroom apartment in Dubai for Dh1 million, which is about 1,200 square foot with an average service charge of Dh 12 per square foot. That means a monthly maintenance cost equates to Dh 1,200.

Factoring in mortgage repayments as well, we are looking at expenses of Dh 5,840 per month. If our purpose for buying the property is an investment for rental yield, then let’s see how much income we are able to generate. Let’s consider our property to be rented out at Dh 80,000, which equates to Dh 6,600 per month.

After deducting monthly outgoing in terms of mortgage payments and service charges, we are still looking at a positive income of Dh760 per month. Upon completion of mortgage payments over the next 20 years, we are now sitting on a fully-paid-up property generating rental yield with only the monthly service charges as outgoing.

If the purpose of purchase is to shift from being a tenant to live in our own property, then instead of paying a rent of Dh6,600 per month, we are now spending Dh5,840 per month on bank repayments and maintenance fee.

It’s a winning situation – whatever the purpose may be.

WATCH THE VIDEO VERSION OF THIS ARTICLE:

 

Source: Gulf News – Written By Aakarshan Kathuria

POST-PANDEMIC: UAE REAL ESTATE WILL OFFER QUITE A FEW CHOICES

There is only one topic on everyone’s mind right now, and no points for guessing what that is. I’m going to talk about what happens next.

I believe the first noticeable change will be in our spending habits once the world goes back to what we used to term normal. Where we used to freely spend our money — hard earned or easy — we might choose to be a bit more frugal. We have realized how critical it is to have savings and more importantly, the right investments.

In addition to savings, we will start to allocate our disposable incomes to forms of investments. Global stocks have seen a decline of 25 per cent; over 50 per cent of businesses globally have come to a standstill based on national directives, which means the ideal investments are hard assets.

There are multiple reasons as to why we should be bullish on real estate. Firstly, #StayAtHome and #WorkFromHome initiatives have taught us that a good portion of our work can actually be done over emails and video conferencing. This change in outlook on work will have a domino effect on our housing choices.

INCENTIVE TO OWN in Dubai

We will choose to upgrade to bigger homes, with more open space and study rooms. This will eventually result in us choosing to own homes as opposed to renting them, as basic human tendency dictates that if we are to spend all that time, money and effort on upgrades, we would rather do it on what we own. Buyers and tenants alike have started to express interest in villas and town houses as opposed to apartment or penthouses in Dubai.

Secondly, the drop in interest rates and a higher borrowing cap of 80 per cent will allow many to enter the market. If for instance we are buying a property at an interest rate of 3.5 per cent and which is generating 8.5 per cent gross income; then we are still taking home on average 5 per cent per annum. That is still far higher than in many international real estate markets.

Similarly, tenants who have 20 per cent deposits saved up could acquire their own property, wherein the mortgage payments will replace their rental payments.

INVENTORY DROP

Thirdly, we might see a reduction in inventory of short-term rentals. I see this trend changing not only because of reduced travel, but based on the comfort level of travellers. We might opt for known hotel chains, based on our expectation of hygiene standards that will be maintained by such property networks. Or else they will be held accountable for it. This will in turn put more units in the long-term rental market, which will create healthy competition for tenants and ensure landlords with the best maintained properties will fare the best.

LIQUIDITY SEARCH

Fourthly, I feel property owners might require liquidity to fund their business or perhaps other commitments, and in the instance they are unable to raise money, they might need to exit from their real estate holdings. They will need to do so in a time-bound manner, which will be prime-time for those investors sitting with funds to enter the market at attractive acquisition values.

While this might come across, as someone taking unfair advantage out of a pandemic, this has been an unsaid rule of business — one man’s loss is another man’s gain.

The UAE government has acted promptly to reduce the negative impact of Coronavirus. RERA confirmed the move to lower the cost burden on homeowners by reducing the service charges, which will give much relief to landlords. Dubai and Abu Dhabi tenants struggling to pay their rent during the pandemic are exempt from eviction as per new directives.

These gestures reflect the leadership’s humanitarian considerations at a time when people are facing never-before-seen challenges. In times like this, the UAE has proven that it looks after the interests of the entire society. This gives its investors the confidence to further bolster their contribution to the country.

WATCH THE VIDEO VERSION OF THIS ARTICLE:

Source: Gulf News – Written By Aakarshan Kathuria

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