Tips for maintaining a Sizable Portfolio of Real Estate Properties in Dubai?

Why is Dubai the hub of investment? The most common answer is the value it provides to the investors. When investing in Dubai, you don’t have to worry about property tax, and they are fully satisfied with the world-class amenities the city offers. Dubai has one of the most lucrative real estate industries in the world; not only that, but it has also become the most sought-after city to have a second or vacation home.

It’s not only the amenities that make Dubai so famous for the investors but also the increasing property demand also is a huge factor. With such high demands for renting and buying properties, the investors are always delivered with high ROI and low vacancy rates. As the real estate market competition increases, the potential of earning better ROI for investors also increases.

The potential of Dubai’s real estate can easily be judged because the real estate industry in Dubai is comparatively new, but it has already made its mark in the world. Dubai is now the hottest city with unparalleled rental returns as well as the highest capital value. What most real estate agents aren’t still aware of is that Dubai’s real estate gives better returns than even the most mature real estate industries of the world.

However, investing in Dubai doesn’t come without risks. So, if you are willing to invest in the real estate market of Dubai, you will need to do your homework. Here are some of the things that you should know before investing your money in Dubai.

Location Is Everything:

When it comes to investing and earning a high ROI, location is the KEY. If you invest in a location that isn’t prime, accessible, and secure, you will have a hard time earning the expected ROI. However, with the latest technology and access to the internet, you can analyze any location and property from your couch.

For an expert real estate or even a novice, managing multiple properties isn’t hard in Dubai. Buy your properties in the same area, and build a larger profile. Go for multiple buy-to-let units in the same area, complex, or apartment; this will also increase tenant communication and help you manage your property better.

Moreover, while investing, have a clear vision, whether you want to invest in areas yielding high rentals rates or areas that offer high capital appreciation. If you are looking for high ROI, the following locations should be your target,

  • Dubai Business Bay
  • Dubai Sports City
  • Dubai Silicon Oasis
  • Discovery Gardens
  • International City
  • Jumeirah Village Circle
  • International Media Production Zone

The rent in these areas is good as well as the occupancy rate is very high. As all these are luxurious and offering ample amenities, these are very popular with tenants.

For areas offering high capital appreciation, you should look into,

  • Downtown Dubai
  • Blue Waters Island
  • Emirates Hills
  • Palm Jumeirah

These areas ooze luxury and are most sought-after by the elites of Dubai. Villas, 5-bedroom apartments, resorts, and mansions are common in these areas, and they also go for a very high price.

Hire The Right People:

Investing in a business can be very daunting if you don’t have the right people working for you. Many a time, real estate agents like to be frugal and work alone. However, this can be a huge mistake if you operate in a competitive market like Dubai’s real estate. It’s a good thing to add an assistant to your lot and delegate work. This will help you manage your multiple units and give you time to explore more properties and sites for future investments.

With the recent evolution of technology, you can even have a virtual assistant. Your assistant can help you keep track of payments, rental rates, tenants and their issues, repair, and maintenance, as well as all tenancy contracts and agreements. Most experts have property managers to do all this, but most novice investors aren’t willing to hire a company or property manager; in such cases, an assistant is the best thing you can appoint.

Hire An Accountant:

Managing your mortgage, debt, investments as well as profits isn’t an easy job when you are dealing with multiple properties. Building a large portfolio covering more than a couple of properties, you will need help. A bookkeeper or an accountant will be an asset to add to your team. There is strength in numbers; while building a business, you need to have a team that you can trust.

Apart from that, there are many legal issues that you might ignore or not comprehend; an accountant can take care of that and more for you. When you are taking care of multiple units, there are any issues like tax charges, rental prices, cost offsets as well as eviction notices. All these legal matters can be handled better with an accountant on board. Apart from that, a good investor understands that an accountant is not a cost but an investment in itself.

Increase Property Value:

Buying a property isn’t enough; you need to maintain it as well. The only way you can maintain the value or even increase the value of your property is by keeping it up-to-date. In a city like Dubai, people pay for furnished and luxurious rentals. They will never be interested in your rental if it’s not up-to-date. Managing multiple properties can make it difficult to keep each one of them updated; however, this is where your team will come in handy. Keep increasing the value of your property by adding the right upgrades. Stay away from anything that only looks good but doesn’t add any value to the property.

Lastly, once you get the hang of it and your portfolio starts to shape up, you will need to think beyond your assistant. Managing a sizeable real estate portfolio means you will need to keep track of every minor and significant issue, and this can’t be done without a good team of trusted people. If you aren’t too sure about hiring many people, you can easily hire a property management company that can look after all affairs for you. A Property management company will provide all the support you will need to grow your real estate portfolio even bigger.

Bottom Line:

The journey from a novice to an expert real estate agent is full of learning the right skills and gaining the right knowledge. While building your portfolio, stay open to hiring people who have ample experience to help you gain the right insights.

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