Common Dubai investment errors

As we see the Dubai property market gaining more & more popularity from property investors, we are also seeing a common errors occurring by some investors, these common mistakes end up being costly for investors if they do not take adequate care. These have been listed below:

• Bad planning
• Cheapest is not always best
• Going direct to the developers

These three common mistakes have been explained in more detail below -

Bad Planning

As with all property investment in all locations investors need to have an overall plan or idea as to what they aim to achieve from their investment, i.e. long term investment, short term, or simply buying as a holiday home. This affects the type of property which is best for the investors and their needs. For example a pure investor looking for along term investment we would recommend purchasing commercial office properties such as the Regal Tower.
If an investor does not have a clear idea of what they aim to achieve from their, then the investment process becomes much more complicated especially when it comes to setting budgets and looking at types of property available, and in some case can lead to investors becoming slightly overwhelmed by the numbers and varieties of properties available.

Cheapest is not always best

Another common error seen is that certain buyers will look to go for the cheapest property they find within a particular location. This is not really the best form of investment, as buyers should be aware that very cheap properties are cheap for a reason primarily the issue is quality, in order to get properties which are much cheaper than others in the market and still obtain good profits some developers may look to compromise on build quality or the quality of facilities available i.e. Gyms, health clubs etc (Although exceptions do exist)
The better option is to pick medium priced properties for example a studio in Jumeirah Village South should be around £60,000.

Going direct to the developers

When buying property certain investors look at buying direct from the developers in the belief that that is how they will get the best deal, this isn’t necessarily true, the better way to invest and buy property is through a good quality overseas estate agent. These firms have made it there business to have a good sock of properties to suit all investment needs, and because they deal with a number of developers rather than just one, they are independent and in the best position to give property buyers that most honest advice and guidance about a particular property or location.

The are the three common errors made buy investors who look to buy in Dubai, and these three issues must be looked at in detail before looking to buy not only in Dubai but anywhere in the world, the simple solution is for buyers to do there research before they look to invest rather than while they look to invest.

Written by

Hamid Shah, Director of Mirage Real Estate Ltd a UK based firm specialising in Dubai and Arabian Gulf investment properties.