Since the last few years, the dynamics of the UAE’s Real Estate market have completely shifted and this shift has provided excellent investment opportunities for the people, especially the new investors. A wide array of properties are available in the market and so investment in this domain has become a popular choice. Faisal Qane suggests that it is more feasible to invest in the property business rather than keeping money in the bank. The Return on Investment (ROI) in the property business is much more than what the banks have to offer a return. However, not everyone is adept at investing in the property market, there are a few basic skills that investors require to ensure that they earn a profit on their business.
Faisal Qane, with his years of experience and expertise in the real estate business, has a few essential tips to share, these are especially for those who are new to the world of the property business and want to make a safe investment in this field:
Understand the market dynamics
Faisal Qane places much emphasis on the importance of gaining an in-depth understanding of market dynamics. The ability to analyze the current and future market trends is the key to investing in real estate. Many people invest their money without doing proper research about the prevalent market conditions and suffer huge losses.
Gauge potential of the locality
Another key aspect of investing in the property business is to correctly gauge the potential of a locality before making an investment there. The right areas will attract tourists and renters who will flock there to make an investment. The potential of the locality can also be measured from the ongoing projects. The investor can then predict the next 5 years for the area and then invest after taking into account all these factors.
Conduct proper research before making an investment:
It is absolutely essential to read local news and reports about the project in an area before taking a final decision to invest. Usually, annual property market reports paint an accurate picture of the prevalent market conditions and the investors can easily go through these reports to understand the conditions of the property business in an area.
An important aspect of making an investment in the property business is to physically inspect the location where the investment is to be made. Often agents lure the investors to take investment decisions in their office and this can backfire if the agent is not a trusted one. Since property investment mostly involves hefty amounts, it is always important to first verify the locality before deciding to put your money on the line.
Be ready with financials
As property investments are expensive, it is essential for any investor to first take into account their own financial condition before deciding to invest. There are many avenues that the investors can explore, but it is always pertinent to start with cash-in-hand finances and take into account liquid assets.
Proximity and connectivity of the location
When looking to invest in property business, accessibility to the amenities is a key aspect to consider. Proximity to good shopping centers, educational and health facilities is always a positive to be taken into account. These can be the deciding factor in making the right investment, if an investment is made in a remote area where accessibility is low, it is never wise to invest money there unless there are ongoing projects that can serve as amenities in the short-term.
What is a safe investment?
Most of the time, as per the advice of Faisal Qane, branded residences are an excellent option especially for the new investors and first-time buyers. These residences are usually linked to a big development group and managed by them, they also offer complementary services to their valuable investors.
These are also considered safer than other investments because the brand offers recognition and trust to the investors. However, the downside of investing in the branded residences is that these are always a bit more expensive than other options out there. So it all depends on the choice of the investor.
Short-term vs long-term investment
Usually, there are two types of investors. The first type buys property for business purposes and their investment is usually short-term. The second type of investors buy property for personal use and usually seek long-term investments. The factors explained above apply to both types of investors, however, the risk factor involved in the long-term would be greater than the short-term investment as people gain profit and move-on in the short-term.
The property business in the UAE is a flourishing one and it offers great opportunities, especially for the new investors. Personal experience and advice Faisal Ali Qane shared above are valuable for all the beginners who have the money but are not able to find the right opportunities to invest their money in a way that offers maximum ROI. So Investment in the real estate business can be a perfect choice for these people.