top investment companies in Dubai

Planning to invest in Dubai real estate? If so, it can be the smartest investment decision of your life. The city’s real estate sector has been steadily on the rise for years now, and with the help of the top investment companies in Dubai, you can get in on the action! One thing you need to remember is that like all other investment vehicles, real estate has its risks too. That is why making sound decisions based on facts and information is so crucial. Having the help of professionals is certainly a boon, but you need to educate yourself too. Here are some of the most important factors you must keep in mind before making a real estate investment.

Property location

Even if you consult a long list of investment companies in Dubai, they will all tell you that location is one of the most crucial factors to consider when buying a property. Whether you are planning to invest in a residential or a commercial property, location will play a critical role in determining profitability down the road. An ideal location should be in close proximity to green spaces, necessary amenities, markets, transport hubs and so on.

What you should look for:

According to the top investment companies in Dubai, when choosing a property location, you should consider how that particular area is expected to evolve over the next few years. For example, the scenic open land behind the property could someday turn into a noisy factory, which will significantly diminish property value. That is why you should review the intended usage and ownership of neighboring areas before investing.

A list of investment companies in Dubai do just that before suggesting possible locations to their clients. With connections to the right government bodies and other agencies, they are able to find the necessary information much more quickly than you might. That information will determine how favorable or unfavorable a location will become in the future.

Property valuation

When you hire one of the top investment companies in Dubai, they will start by performing a property valuation. That is a critical step that will be useful and even necessary for purposes such as insurance, investment analysis, price listing, and purchase.

What you should look for:

A list of investment companies in Dubai use various methods when performing real estate valuation. Some of these methods include the sales comparison approach, which involves comparing sales of properties that have similar characteristics. Then there is the cost approach, which covers the cost of the construction and the land minus depreciation. This one is best suited for new constructions. Third comes the income approach, which relies on the expected cash inflow. You should use this one if your ultimate goal is to rent out the property.

Investment purpose and horizon

As per a list of investment companies in Dubai, most real estate investors who fail or face financial distress do so because of a lack of a clear purpose. That happens mainly because real estate is a high-value investment vehicle with low liquidity. Moreover, if your investment is mortgaged, you should pay extra attention to your ultimate purpose.

What you should look for:

Any of the top investment companies in Dubai can help you get clarity on your purpose. Here are a few broad categories that generally apply to real estate investors. You can choose any of these as the purpose of your investment.

  • Buy and sell in the long term
  • Buy and sell in the short term
  • Buy and lease
  • Buy and self-use

Expected profit opportunities and cash flows

Before investing in real estate, you should always take into account the issue of ROI. Cash flow refers to the amount of money you are left with after expenses. To get a good return on your investment, you should always try and maintain a positive cash flow. The top investment companies in Dubai can help you achieve that.

What you should look for:

When calculating the expected returns, a list of investment companies in Dubai consider the following expenses and profits.

  • Income generated from rentals (inflation can give you a surge in cash flow)
  • Potential rise in intrinsic value because of long-term appreciation
  • Benefits of depreciation
  • Cost of renovation before resale
  • Increased property value due to renovation

Existing property vs. new construction

With new constructions, you might get attractive pricing, customization options, and contemporary amenities. On the downside, there may be increased costs, risk of delays, and the uncertainties associated with a newly developed neighborhood. Existing properties, on the other hand, offer you faster access, convenience, established improvements, and lower costs.

What you should look for:

Here are a few things you need to do when choosing between an existing property and a new construction.

  • Before choosing a new construction, make sure to research the developer and review their reputation and past projects.
  • Thoroughly review appraisal reports, recent surveys, and property deeds.
  • Consider outstanding dues, maintenance costs, and other expenses.
  • Check the quality of equipment, fixtures, and furniture (if these are included in the sale).

There is a lot of money to be made in real estate. Dubai’s economy relies a lot on the city’s booming property sector. With investors coming here from all around the world and new constructions taking place every year, the real estate investment sector looks promising.

If you are planning to get into it, having the guidance of an investment company will be a boon for you. RiseUp, one of the leading real estate investment firms in the UAE, will be an ideal choice. With an in-house team of dynamic and experienced professionals, RiseUp is best positioned to help you in your journey.

From advising you on various investment related matters and helping you find ideal properties to closing favorable deals and dealing with the paperwork, RiseUp can do it all for you. To know more about their services and how they can help you invest better, give RiseUp a call or drop them an email today!

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