Real estate in Dubai : buy-sell strategy
As you probably know, buying and selling real estate in Dubai can be a big business. Very big. Indeed, the terms of payment and financing make it possible to make very large profits with a relatively modest investment. But of course, you have to choose the right strategy. Dubai Immo (Elysee Vendome Real Estate LLC), is the number one French real estate agency in Dubai. In this article, we present to you the most effective strategiesto carry out yourreal estate purchase and sale operationsin Dubai.
Buying and selling real estate in Dubai: what are the benefits?
By choosing the right property, in consultation with your professional Dubai Immo real estate agent, you can realize gains of up to 100% of the amount invested. For example, if you invest in a property with a payment plan that requires you to pay 30% during construction and 70% upon completion, you can make up to 100% profit on the amount invested by selling your property for 30% more than the original price.
Explanation by example:
Apartment at AED 1,000,000.
You pay AED 300,000 within 6 months.
You sell the apartment for AED 1,300,000.
You cash in AED 1,300,000 and pay the promoter the remaining AED 700,000 with this amount.
AED 1,300,000 - AED 700,000 = AED 600,000
You have AED 600,000 in your pocket although you had invested "only" AED 300,000.
So you make a 100% profit.
Reselling a property for 30% more between the purchase at the beginning of the construction and the end of the work is very common in Dubai. It is a common capital gain.
Success of the buy-sell transaction and payment plan
The payment plan will play a central role in the success of your purchase-resale operation. Indeed, you should favor programs wherethe major part of the price of the apartment is to be paid at the end, or even after the handover of the keys. In this way, you will not tie up a lot of cash and can thus make a significant leverage on your profits.
Transferability of the payment plan
This is a VERY important aspect of the buy-sell transaction. If you buy a property with an exceptional payment plan, which is not likely to be offered in the future, it can greatly help you achieve significant profits.
CAUTION: it is important to check at the time of purchase that the developer agrees to issue the NOC authorizing the transferability of the payment plan. Some promoters require the new buyer to pay off the apartment in full in case of resale during the payment plan. Some developers, such as Emaar, allow the transferability without any problem. Emaar offers specific support for property resales under payment plans and the operation is quick and easy. The resale is authorized as soon as 30% of the property has been paid. At Damac, it is from 40%, at District One from 50%. Your Dubai Immo consultant will be able to provide you with the details.
Which properties to choose for buy-to-let operations in Dubai?
Dubai Immo's recommendation is to position yourself on properties where the equivalent prices of the ready properties are much higher. You should also focus on relatively high-end properties, for which future buyers will be able to pay the 30% or 40% that you will have already paid on top of your first one (the profit you make). We recommend you to position yourself on premium properties, in the city center, on the seaside or on villas like Damac Lagoons. Very high profits have been made in recent years on programs such as Emaar Beachfront or Dubai Hills, for example. The areas of Downtown, Business Bay, Damac Hills, Palm Jumeirah or Marina are to be preferred.
Conclusion on the buy-sell strategy to adopt for real estate in Dubai
As an investor, you will need to position yourself on prime properties, with a transferable payment plan where the majority, at least 60%, is to be paid after the work is completed. The property will have to be a highly sought after property for people who don't want to wait, such as families moving to Dubai or wealthy clients willing to pay top dollar. Villas are very good options. The profit on the amount invested can be very high and exceed 100% of the amount invested. With the right strategy and the right support, you can achieve very high profits. The real estate agents of Dubai Immo (Elysee Vendome Real Estate LLC) are here to help you in this project!
