Investmentstrategies for Dubai real estate

There are several strategies to profitably invest in Dubai. For example, it is possible to; pay the purchase price all at once, follow a payment plan, finance property and flip property during the construction period.

Pay all at once 

Paying the purchase price all at once can be very advantageous in Dubai. For example, there are property developers who offer substantial discounts when paying for new construction projects all at once. This can be in the form of a discount on the entire purchase price or in the form of recurring cashbacks over a predetermined period of time.

Payment plan

In Dubai, for new construction projects, it is possible to pay the purchase price in installments. These installments vary by project and developer. No interest is charged on the amount due per installment. All installments together make up 100% of the purchase price and no interest is charged on the installments. Often the payment terms run up to and including the completion of the new construction project, but in sporadic cases it is possible to get a payment plan that runs up to 3 years after completion. In the latter case, the tenant thus partially pays the remaining part of the purchase price still to be paid.

Mortgage

It is possible to get a mortgage in Dubai. Up to a maximum of 60% can be financed on an already existing building. However, this process is quite difficult and without the right contacts it can take a very long time. Therefore, if new construction is purchased through a payment plan, it can be very convenient to have a payment plan with a high remaining amount at the time of completion so that the remaining amount to be paid can be financed. This way relatively little equity is brought in and the tenant pays off the mortgage.

Flipping

Another strategy to invest profitably in Dubai is real estate flipping. This strategy is mainly interesting for new construction projects. Because in Dubai new construction projects are marketed relatively low, we see significant price increases during the construction phase. These Significant price increases come from the fact that the projects are becoming more tangible, towards completion the projects are taking more and more shape. Another reason for the significant price increases during the construction period is the near ability to rent out the property, something that is almost ready to generate returns lies very well in the market in Dubai.

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