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Real estate in Dubai: succeed in your buy-sell operation

Guillaume Giroux on October 3, 2022

In Dubai, everything is done to give you the opportunity to make money with real estate. In addition to offering rental yields between 7 and 12% net, real estate in Dubai can generate profits in many other ways. One of them is resale during construction. This practice is tolerated by the developers, who allow you to resell your apartment in Dubai, sometimes even before the first shovel has been turned. And it is possible to make significant profits very quickly. Explanation.

Dubai real estate : Buy to resell quickly and make a capital gain

Withreal estate investment, your objectives should be focused on 3 goals: rental profitability, real estate appreciation and wealth building. If you are looking for capital gain, it may not be necessary to wait long to generate significant profits if you invest in real estate in Dubai. Indeed, the developers allow you to sell your apartment or villa while you have not yet recovered the keys. On some programs, the demand is extremely high and with the help of our professional real estate agents, you can access the most exclusive units. On these highly coveted real estate projects, thesupply will not meet the demand. And that's when great opportunities arise for investors.

How to buy and sell a property quickly in Dubai?

It is important to choose the right program, the one for which we know in advance that the demand will be largely superior to the offer. For this type of operation, we propose apartments with a view, in strategic locations or villas. On programs such as Emaar Beachfront or District One, less than 10% of investors will succeed in obtaining an apartment or a villa on the project. A significant portion of these investors will be willing to pay a little more than the original price to get an apartment and your contract. In order to transfer the contract, the new investor will have to pay you back what you have already paid, pay you the amount of your surplus value and pay the developer a certain amount. Most developers will only accept the resale if they have received 30 or 40% of the total price of the apartment or villa. Even if the payment plan gives 2 years to reach the 30 or 40% payment, some investors will be willing to pay this amount immediately in addition to your premium to get the unit back.

Case study of a buy-sell operation to understand everything

Example with a villa at AED 4,0000,000.
You have paid 10% + 4% notary fees at the time of reservation, i.e. AED 560,000.
You decide to put your villa up for sale immediately, for a price of AED 4,500,000.
A buyer comes forward and accepts your offer.
The developer asks to receive 40% in total to validate the transfer of the contract.
The new investor reimburses you the 10% you paid, i.e. AED 400,000 (the notary fees are lost).
He also pays you the difference between the original purchase price and the new price,
i.e. AED 4,500,000 - AED 4,000,000 = AED 500,000.
You have thus recovered AED 900,000 in total, for an original investment of AED 560,000, i.e. 62% profit!
The client then pays the 30% requested by the developer to reach the 40% (30% + 10% that you have already paid).
The transaction is validated, you have achieved a great buy-sell operation in Dubai, congratulations!

If you are interested in buying and selling in Dubai, please contact us at +33 7 56 82 82 73 or on our local line at +971 56 367 2667. We can also be reached via the WhatsApp link at the bottom right of this screen, or by email at [email protected].

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