Why the Dubai property market is of interest to investors in 2021

Why the Dubai property market is of interest to investors in 2021

08.20.2021 (updated 11.30.2022)

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  • Why the Dubai property market is of interest to investors in 2021

In 2020, the growth of the real estate market in Dubai slowed down because of the global pandemic. The value of residential properties dropped almost to the cost level and investors could purchase them and see a good return at that time. In 2021, however, real estate prices grew again due to the vaccination campaign and economic recovery.

New tools for investors

In January 2021, a service called Stake was launched in FinTech Hive DIFC, a special economic zone in Dubai. This is a digital platform where potential investors can view pre-verified documents on real estate projects. The documents available to users include due diligence reports, property valuation reports for each project, market reports, and financial projections.

Co-founders Rami Tabbara and Manar Mahmassani used their 15 years of experience in the Dubai real estate and financial markets to launch this digital platform for real estate investment.

“We think there will be more residents in Dubai after retirement visas and five-year visas have been introduced. All this will create a fantastic opportunity for people to enter the real estate market. If you go in at the lows, you will make money at the highs,” Tabbara said.

Regulated by the Dubai Financial Services Authority (DFSA), Stake deals only with residential real estate, including resale properties that the founders think yield the best return on investment.

The service also encourages investment in several properties at the same time. “Instead of forcing one investor to put all their money into a single property, we suggest that they divide this capital into five or six different projects and start making a profit,” Tabbara emphasized.

The minimum investment amount is AED 2,000 (USD 550).

The service creators are also proud that it meets all the requirements of transparency, giving users access to a large amount of information.

“There are many shortcomings in real estate investment that make developers and brokers prone to misleading investors and forcing them to buy expensive properties with low returns,” Tabbara said.

The partners invested AED 7.34 million (USD 2 million) in the Stake startup. This included money from the founders themselves, their friends and families, as well as Madison Marquette, a leading US commercial real estate investment manager, and venture capital from London.

Interesting projects for real estate investment in Dubai

In 2021, there are many residential development projects available in the Dubai real estate market that can interest an investor. Here are the most attractive options.

Golf Views Seven City

Golf Views Seven City is a residential project being built by Seven Tides in Jumeirah Lake Towers. This complex will include studios and one, two, and three-bedroom apartments worth upwards of AED 375,000 (USD 102,000). The construction completion is scheduled for the second quarter of 2023. The down payment is 5%.

The best features providing the utmost comfort and privacy for the residents blend seamlessly in Golf Views Seven City. This project combines luxury, convenience, and harmony. Residents will have access to swimming pools, a fully equipped gym, spacious underground parking, and various shopping malls nearby.

Golf courses are 5 minutes away from the residential complex; Downtown Dubai is 20 – 25 minutes away, and the underground is 8 – 10 minutes away.

Golf Grove

Golf Grove is a project launched by Emaar Properties in Dubai Hills, a family-friendly community. This exclusive residential development is surrounded by parks and footpaths – a true breath of fresh air after the bustling downtown. Here, you can properly relax and re-energize.

Golf Grove offers three and four-bedroom villas. Each residence will be commissioned fully furnished and equipped with all the necessary home appliances.

The construction completion is scheduled for 2022. The cheapest property costs AED 3.6 million (USD 908,000).

Executive Residences

Executive Residences is a residential project launched in 2019 in Park Ridge, a green neighborhood in Dubai Hills. It offers the best of both worlds – living in a private apartment and having the use of first-rate public amenities.

One, two, and three-bedroom apartments, as well as commercial premises are available here. The prices start at AED 1 million (USD 272,500).

Amenities will include a skate park, a water park, a city beach, cafés, jogging lanes, shops, and supermarkets.

The project is planned for commissioning in the fourth quarter of 2021.

View more promising properties for investment in Dubai from the leading UAE developers on the website of AX CAPITAL, a Dubai real estate agency.

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