Investors weighing up their options in Dubai real estate are advised to focus on under-supplied properties offering the best real value rather than those made to stand out by the most creative marketing initiatives.
Firas Al Msaddi, CEO of fäm Properties, a prominent Dubai’s real estate brokerage house, said on the closing day of Cityscape Global that careful analysis of market supply and demand is the key for property buyers.
“There are so many amazing projects in Dubai and every developer claims that its product is the best,” said Al Msaddi.
“Real estate marketing and promotion has gone to a new level of creativity and can confuse inexperienced investors or end users trying to identify the best purchase.”
Gauge end-user demand
He adds: “If you have a budget of AED1.2 million and want a one bedroom apartment of 750-850 sqf within a 2km radius of Dubai Mall, there are more than 100 very similar buildings to choose from.
What is vital, he said, is to evaluate a property in the context of expected end user demand once the project is completed in order to get the best return on investment.
“Demand can be measured in terms of the property’s liveability offering – the amount of space and comfort – combined with the individuality and unique nature of the development and the overall market supply factor.”
Al Msaddi continues: “Location, price, developer’s reputation, quality of build, size and view are usually the main decision-making factors, but buyers should make end user demand the main driver of their investment decision.”
Al Msaddi identifies a number of developments offering under supplied products he believes will generate growing demand due to their unique offerings. These include:
NIKKI Beach Apartments – City Walk- Mohammad Bin Rashid Al Maktoum City, District One Villas – Mada Residences and Dubai Canal Water Homes.
Meanwhile, Saudi investors will continue to put their faith in Dubai real estate because the emirate’s property market has a proven reputation for delivering long-term benefits, Okbah Abdulkarim, Chief Operating Officer of ARTAR Real Estate Development a developer said at Cityscape Global today.
Dubai’s status as a safe haven for real investors remains intact and major developments driving the economy are building investor interest.
Official Dubai Land Department figures show that, in the 18 months from January 2016 to the end of June this year, the biggest GCC investors in Dubai real estate other than Emiratis were Saudis who made a total of 5,366 transactions worth AED12.5 billion.
“Many Saudis still see Dubai as a desirable city to visit because it’s close by, there are shared religious and cultural values and a superb lifestyle here,” says Abdulkarim.
“There’s a lot of diversification in the investment opportunities here in Dubai and it’s a city that Saudis know well, and trust.”