The UAE real estate market has gone through some challenges recently, experiencing drops in sale prices and rental rates in 2016. This decline has been attributed to reduced demand for accommodation. However, analysts are saying that the market is likely to see an uptick in 2017, as developers look to accelerate their construction projects in time for Expo 2020. This presents a unique opportunity for real estate investors to grow their portfolio. At the same time, it opens a door for new investors to penetrate the real estate market, while the prices are low. If you are looking to make a real estate investment in the UAE this 2017, here are a few tips you could use to help you make the smart financial choice.
- Location, Location, Location
When investing in real estate, location is one of the most important factors for you to consider. The location of a property can have a significant impact on the growth of its value in the long term. Check the quality of the neighbourhood, the surrounding facilities, if there are good schools nearby, the availability of modern necessities, and the like. A property in a good location is likely to grow in value as demand starts to pick up.
One old adage that still works today is this: buy the worst house in the best street. This allows you to build your equity over time, thus growing the value of your investment. If you pick a good location, prices in your market will increase over time, without any effort on your part. However, if you want to actively build your equity, you can do so by investing in improvements that increase the value of the property. There are numerous ways to do this, including improving the energy efficiency of the property and developing its landscape. another way to build equity is to keep the property in excellent condition through regular upkeep.
- Credit Report Check
If it is your first time investing in real estate, you will likely need a real estate loan from the bank. Thus, it is important to have an immaculate credit report before you take the plunge and invest in real estate. If you have red marks on your credit report that are errors in reporting, then it is best to have them addressed immediately. On the other hand, if you have legitimate red marks on your report, then you must improve your standing before you apply for a loan.
Banks are more apprehensive towards lending a loan for a home that is not your private residence as compared to a home loan for property that you will be living in.