Not just "buy and sell": how to earn money in Dubai's real estate market

Dubai's real estate has always attracted investors from around the world. However, while the main way to earn money was previously limited to buying and reselling properties, the situation has changed today. The growing real estate market in Dubai offers investors new opportunities to earn money not through resales, but through the improvement and reprofiling of existing properties.

In 2022, residential property prices in Dubai rose by 98%, and sales increased by 67%. These figures indicate that Dubai's real estate market has been growing dynamically for the third year in a row. Experts predict that over the next two to three years, real estate properties in Dubai will be attractive to investors.

Many companies have already begun to familiarize themselves with the real estate market in the UAE, and some of them have already entered projects and started construction. However, to operate successfully in an unfamiliar market, companies benefit from collaborating with the largest local developers, such as Emaar or Nakheel.

One example of successful collaboration between investors and developers is the opportunity to acquire an entire building in promising locations, which are master-developed by Emaar or Nakheel. Such an approach allows investors to receive an exclusive offer on the market and exit the project closer to the completion of construction or after the building is delivered with a yield of 20-30% per annum.

Partnership with Arab developers: investment safety and attractiveness

For many investors, real estate is one of the safest ways to invest money. However, like any other business, there are risks involved, especially when dealing with new markets. But what if we told you that there is a way to invest in real estate that minimizes risks and provides access to the most interesting projects in the Middle East?

We're talking about partnering with Arab developers. This approach not only provides investment safety but also gives access to exclusive lots in the most sought-after projects. Compared to working independently, profits may be slightly lower, but it's the price for safety.

The strength of such a scheme is primarily safety. The risk of losing money with this approach is very low. Developers who carefully assess risks understand the attractiveness of this model and look for opportunities to enter the most interesting projects, sometimes buying entire buildings or several floors.

Furthermore, it opens up the possibility of establishing strong relationships with the largest developers in the Middle East. Under the partnership scheme, developers can easily establish contacts with agencies through which apartment sales are conducted. This enables projects to be implemented quickly and effectively, increasing profits.

The risk-to-profit ratio under such a scheme is very attractive. Also, Arab developers typically don't burden foreign partners with intrusive attention and don't try to control every aspect of the business. This allows investors to work freely and make decisions without worrying about possible intervention from a partner.

What risks are you willing to take for the sake of profit? This is a question that concerns many investors, especially those who decide to invest in real estate development. And if developers want to make a high profit with minimal risks, partnering with local developers can be an optimal choice.

One downside of this scheme is that developers will earn 10-15% less than if they were acting independently. However, this missed profit becomes a price for the security provided by partnering with a local partner. Instead of risking money loss, developers can gain access to exclusive lots in the most in-demand projects that will be in high demand on the real estate market.

Partnering with local developers also provides an opportunity to build strong relationships with the largest developers in the Middle East, which can become a significant advantage for builders. In addition, with this scheme, developers can easily establish contacts with agencies through which apartment sales are made.

But what other benefits does partnering with local developers have? First, it is an opportunity to avoid mistakes that can lead to money loss. In partnership with a strong local partner, a novice will not make such mistakes, as they will receive experience and support from a more experienced partner.

In addition, the ratio of possible risks and profits under this scheme is very attractive. Developers who carefully evaluate risks understand that partnering with local developers can be a very profitable solution for investing their money. Arab developers usually do not burden foreign partners with intrusive attention and do not try to control all aspects and nuances of the business.

Home staging is a process in which experienced designers and architects transform ordinary homes and apartments into stunning real estate properties that attract potential buyers. This increases the selling price of the property and reduces the time it takes to sell.

In Dubai, home staging is a very popular service that many companies and brokers have already taken up. They specialize in finding properties in prestigious areas with high demand on the secondary market that can be purchased at a minimal price.

These properties are then handed over to experienced designers and architects who make a series of changes to enhance their attractiveness. This may include changes in color schemes, installation of new furniture, lighting modifications, kitchen and bathroom improvements, and much more.

In addition, when choosing a property for home staging, it is better to prefer those that do not require significant investment in renovation or upgrade of engineering networks and load-bearing structures. This way, you can save money and get a higher profit when selling real estate.

Ultimately, home staging is an excellent way for investors who want to make money quickly from real estate without having huge capital. With this service, you can increase the selling price of the property and get excellent profits in a short time.

Home Staging: an effective way to increase real estate investment returns in Dubai

Dubai is one of the most rapidly developing cities in the world, and investing in real estate here can yield high returns, but it also requires a serious approach and expertise in selecting properties for investment. One effective way to increase investment returns is through the use of Home Staging.

Home Staging is the process of increasing the attractiveness and sale price of a property through reconstruction and interior design. This method is becoming increasingly popular in Dubai, where there is high demand for premium real estate. A team of professionals, including builders, architects, designers, and marketers, brings the property to a state that maximally corresponds to the requests of real estate buyers in the area, their tastes, and lifestyle.

For a broker who is selling the property, Home Staging is an effective way to quickly recoup investments. Often, the sale occurs before the renovation is completed. The profitability of such investments can range from 50 to 100%.

In addition, Home Staging is associated with another popular option – furnishing and decorating an apartment that is intended to be rented out. Specialists help develop a budget based on the cost of the apartment and its rental rate. Then they find and bring furniture and other interior items that look good and will last long, but are not unreasonably expensive. Updated apartments are interesting to companies that work in the rental market. Such companies take apartments under management by contract, they will deal with all issues with tenants and payments, and transfer the income to the owner after deducting their fee.

Real estate investment is one of the most popular ways to preserve and grow capital. Investing in real estate in developing cities, such as Dubai, is particularly attractive due to high economic growth rates and infrastructure development, making the city appealing to businesses and investors.

One of the most interesting investment opportunities in Dubai is finding villas or townhouses to open a business. Many low-rise areas of the city lack service sector enterprises, such as beauty salons, daycare centers, educational centers, veterinary clinics, etc., creating a need for business projects that can provide the necessary services for residents of these areas.

Entrepreneurs who want to invest in such a business can look for properties to rent or buy, renovate them, and provide services that are needed by residents of the area. However, before starting to invest, it is necessary to conduct thorough market research and assess the competition in the area where you plan to open a business.

Successful real estate investment in Dubai also requires consideration of many other factors, such as market trends, legal aspects, tax obligations, etc. Therefore, if you are not an experienced investor, you may need the help of experienced real estate consultants who can help you choose the right property for investment, assess its value and risks, and set up a business plan.

Investing in real estate in Dubai can be very profitable, but like any other investment, it is not without risks.

Keywords: Dubai Real estate market Investment Capital Property Development Infrastructure Business Investor Villa Townhouse Low-rise buildings Services Beauty salon Childcare center Educational center Veterinary clinic Market research Competition Market trends Legal aspects Tax obligations Risk assessment Business plan Property management Rental income Capital gains Property flipping Partnership Diversification