Is It The Right Time to Invest? | Commercial Real Estate Companies In Dubai

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The secret to making any successful investment is good timing. If you are planning to invest in Dubai’s commercial real estate market, make sure it is the right time to do so. Much like any other investment vehicle, real estate goes through its ups and downs as well. However, according to the top commercial real estate companies in Dubai, a market downturn does not necessarily mean you should avoid investing at this time. Real estate prices tend to go down during downturns. Investing during such a phase may set you up for making big profits down the road. All you have to do is find that sweet spot when the market is starting to rise. Below are a few other tips that should help you figure out if it is the right time to invest.

Study the market closely:

As the commercial real estate companies in Dubai will tell you, commercial real estate varies by market, submarket and type. The industrial property sector has seen its fair share of growth because of the direct-to-consumer shift. Because of this, the demand for regional warehouses has increased. More and more people are shopping online, which is why the number of regional malls are also decreasing. The market is constantly evolving, which is why you need to study it carefully. You should also pay attention to the migration patterns that can create vacancy in some areas and demand in others.

Buy when you can afford to:

You should only buy a property when you can afford to. You do not need to wait for a downturn to get a “steal.” If you have the finances to buy right now, you should go ahead. On the other hand, if you cannot afford it, you should wait even if it feels like the ideal time to invest. Just because a down market is beneficial for some does not mean it is the same for everyone.

Partner with a commercial real estate agent:

The support and guidance offered by commercial property estate agents Dubai can prove to be invaluable to you. An economic downturn affects the commercial real estate sector differently. That is why you should partner with a professional who has a vast knowledge of the real estate market of a specific region as well as the commercial sectors and economic patterns. Only a commercial real estate professional can help you find and analyze the data required to leverage the market conditions.

Find a local expert:

When partnering with commercial property estate agents Dubai, you should always choose a local expert. They are the ones who have the appropriate knowledge and experience to help you. Having observed the market fluctuations for years, they are in the best position to give you advice. A local expert will be able to tell you which areas have the highest potential for growth and are ideal for investing.

Pay attention to the economy and demographics:

A close look at the local demographic and economy should help you determine whether or not it is the right time to invest. The commercial real estate companies in Dubai can help you make a solid hypothesis based on data and stats. However, you can do your research and offer input as well. For starters, you can check out similar properties and find out if the market for them is shrinking or growing. Secondly, you need to check the employment rate in the area. The factors will play a critical role in your decision-making process.

Look for sustainable and consistent city growth:

Consistent and sustainable growth are great indicators that tell you which locations are ideal for investing. As the commercial property estate agents Dubai will tell, the city is always growing and evolving. A major chunk of the city’s economy relies on real estate. That means there is always something exciting happening in this sector. New developments are taking place every year, and there are great investment opportunities everywhere.

Identify and evaluate your goals and objectives:

Investing in commercial real estate without a clear and strategic objective can be a serious mistake. For example, let’s say your original plan was to invest in a retail shopping mall, but your research and market analysis show that a warehouse space that supports home deliveries would be a better investment. In this scenario, changing your objective would be the obvious choice. If you do not have a strategic goal that is backed by data, the commercial real estate companies in Dubai can help you with that.

Prioritize flexibility and reuse:

The reliable and experienced commercial property estate agents Dubai will always advise you to focus on flexibility and reuse, two qualities that make a commercial property ideal. That is because whenever the market experiences a downturn, one or more commercial sectors get hit the hardest. For example, the downturn caused by the COVID-19 pandemic has affected commercial real estate involving retail and office space the most. If you can find a property that can be repurposed and reused to meet the need of the hour, you will win regardless of the effects of the market downturn.

Find the best commercial property estate agents Dubai at RiseUp

So far, we have looked at all the ways you can determine whether or not it is the right time to invest in commercial real estate. However, regardless of what you decide, one thing is for sure – you need the help and guidance of commercial real estate companies in Dubai to make sound decisions. RiseUp is one of top real estate companies in the UAE. With years of experience in the commercial real estate sector, the agents at RiseUp are best suited to work with you on your investment journey.

Besides agents who can help you find the right properties, RiseUp also has reliable investment advisors and a highly efficient legal team to back you up every step of the way. If you are wondering about how they can help you invest in commercial real estate in Dubai, get in touch with them today!

Real Estate Portfolio Management In Dubai | What Do We Say?

Portfolio Management Services in Dubai
REAL ESTATE PORTFOLIO MANAGEMENT SERVICES IN DUBAI

Hiring a unique portfolio management services in Dubai could be the secret to your success as a real estate investor in the city. If you have never worked with one before, you might think that they are just like a financial asset manager. However, in real estate, portfolio managers have a different role. In fact, real estate portfolio management is radically different from managing assets such as mutual funds, bonds, equities and so on.

Typically, equity managers need to research firms and manage the probability of them fulfilling their articulated strategies. However, portfolio management services in Dubai are responsible for defining and taking advantage of opportunities in the real estate market. From managing risks and allocating assets to handling transactions and dealing with the land and structures on it, real estate portfolio managers do it all.

Therefore, unlike traditional money managers, real estate asset managers focus on optimizing the value of your investment properties. In fact, portfolio managers function a lot like corporate CEOs in that they are running a facility much like a company. In contrast, money managers typically know of stocks of a certain sector or field, but they do not involve themselves in the company operations themselves.

What can a unique portfolio management company Dubai offer you?

Companies that offer portfolio management services in Dubai typically have teams of experts who are trained much like other fund managers. The professionals use their skills and experience to ensure portfolio performance. In some cases, portfolio managers are rated based on their ability to produce appropriate risk-adjusted portfolio diversification and returns through various means such as asset selection and allocation.

Furthermore, a unique portfolio management company Dubai can add value by using your capital most efficiently. They will also keep you informed through cash flow forecasting and various other performance measurement techniques. In that sense, real estate portfolio managers create and execute property-level strategies for the assets they are managing.

How do portfolio managers build strategies for investment selection

When you hire portfolio management services in Dubai, the company or professional will be responsible for selecting and allocating assets. They do it not just by gaining an understanding of the market dynamics, but by also being experts in property fundamentals. Real estate portfolio managers are trained and educated in the local market as well as in the various commercial land uses such as single and multifamily residential, retail, hotel, industrial, and office.

To produce sufficient risk-adjusted returns, ensure diversification, and beat the market, portfolio managers in the real estate sector need to place their bets on local and regional property markets. When handling multiple-asset portfolios, they also have to focus on building the correct property mix. Because of this, a unique portfolio management company Dubai may concentrate on specific property types of regions. Some portfolio management companies also devise their teams and senior employees by land use or regions. They do that to make sure that market opportunities are identified and translated into the correct asset selection and origination.

How does real estate portfolio management work?

At the core of efficient real estate portfolio management, you will find experts who add value by executing various property-level strategies. Companies that offer portfolio management services in Dubai have in-house teams made up of experts who specialize in regional market fundamentals or certain property types. These experts are also responsible for optimizing and increasing the value of the properties in their custody. Besides facilitating transactions and providing information and suggestions on local prospects, portfolio managers also maintain and monitor proeprty-level performance.

A unique portfolio management company Dubai will approve budgets and manage expenses on your behalf. They will also focus on increasing value by managing the rent or lease on your properties. You might feel that these are simple enough tasks that you can manage on your own. However, in reality, the process is not as black and white as it seems. It involves a complex function that requires your full-time attention and dedication. Failing to do it efficiently might reduce the value of your portfolio significantly.

If you want to make a sustainable income through renting or leasing your properties, you would have to find and execute the best possible opportunities for each of your investment properties. To achieve this, you will have to conduct a thorough search and facilitate a program that fits perfectly with your portfolio management strategy. Of course, you would need to devise a fool-proof portfolio management strategy first. You would also have to make sure that any changes you bring should not disturb your existing tenants or your relationship with them.

Why hire RiseUp for portfolio management needs?

If you want the best portfolio management services in Dubai, RiseUp is the answer! Being one of the leading portfolio management companies in the UAE, RiseUp is best suited to fulfill your needs as a real estate investor. We have a team made up of highly skilled and professionally trained portfolio managers who will manage your real estate portfolio and also optimize the value of each one of your assets.

Renting and leasing properties can involve a lot of negotiations. Handling it poorly may cause your relationship with your tenants to get strained. That is why having RiseUp’s expert portfolio managers can save you a lot of trouble. When you have them by your side, you can rest easy knowing that the job will be handled smoothly without you putting additional efforts.

Managing your portfolio also means that our portfolio manager will be responsible for your investment decisions. Since RiseUp has its own investment advisors, you can get the best guidance when choosing properties. No matter what your goals are, your portfolio manager will work towards achieving them. In the meantime, you can focus on some other aspect of your work or life.

There are countless benefits to hiring portfolio managers from RiseUp. Besides getting the best professionals that the industry has to offer, you also get portfolio management services in Dubai at fairly low prices. To know more, give us a call or drop us an email today!

What To Consider Before Investing in Dubai Real Estates – Top Real Estate Company In Dubai

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What You Must Consider Before Investing in Dubai Real Estate

Want to invest in Dubai Real Estate, but feeling a bit apprehensive? You are right to proceed with caution, especially if you are a novice in this field. Investors who do not have real estate experience might get carried away and take unnecessary risks. However, when it comes to a stable and booming market such as real estate in Dubai, you have little to worry about. As long as you consider the following key factors, making the right decision will become a piece of cake. These five steps will not only help you choose the right property, but they will also set you up on the path to success as a real estate investor in Dubai.

  • Your objective behind investing in Dubai Real Estate

Before you start looking at potential properties, make sure you have a clear objective in mind. Most investors focus on the return on investment, be it through long-term capital gain or through an annual yield. The Dubai real estate market is versatile and flexible. It can accommodate the needs and objectives of both seasoned and novice investors. All you have to do is analyze what you want and decide your next steps accordingly. Do you want to buy a vacation home? Or, do you want to buy a luxury villa that you can rent out to make a sustainable income? Once your objective is clear, you will know where and how to invest.

  • The location can make all the difference

When it comes to real estate, location is everything! It is even more important to those who are looking for an investment opportunity in Dubai Real Estate. Of course, a great location means a hefty price tag, but it also means high property value, which makes it a great asset for any investor. The better the location, the higher the return on investment. However, simply choosing a popular location might not fetch you the desired outcome. The location you have chosen must also support your overall objective. What you intend to do with the property should tell you where it should be situated.

  • A clear understanding of market trends is necessary

Researching and analyzing market trends and stats is perhaps one of the most important steps that you must take care of when you are planning to dip your toes into the pool that is Dubai Real Estate. You need to educate yourself by reading up on investment patterns, current trends and future predictions. When you are confused about which location will fit your objective the most, this particular research will come in handy. You will also get to know about investment terms and other aspects that you may not have known before, and this knowledge will prove to be invaluable as you go forward.

  • The difference between expenditure and investment

Once you have taken care of the factors mentioned above, it is time to get your finances in order. At first, you need to look at your spending and savings patterns, and then do some math! Figuring out exactly how much you can afford to invest in a particular property can seem daunting. However, it is easy when you know a simple formula.

For example, if you are planning to invest and then put the property on rent, you will need to subtract the cost of taxes, maintenance, repairs, and insurance from the rent you are expecting. The sum you will be left with will be your profit or cash flow.

On the other hand, if you want to use the property as your home or holiday home, you will have to subtract the price of the property and your monthly expenses from your yearly income to figure out your cash flow.

The exact figure will certainly depend on your objective as well as the state of the market. However, internationally renowned markets such as Dubai real estate tends to produce a higher ROI than others, generally in the range of 6 – 8% per annum.

  • Guidance from the best real estate agent

Hiring a competent real estate agent is the final step in the preparation stage. No matter how well you have studied the market, it cannot compare to the industry experience of a professional. You need the assistance of someone who is familiar with the trends and developments in Dubai Real Estate. Only a reliable real estate agent can help you make the most of your investment.

With these factors in mind, you should be ready to take the plunge. Take advantage of the post-pandemic boom, and make the most of your money.

Get the best investment advisory services in Dubai from our experts at RiseUp Holding.

THE MATH BEHIND A HOME INVESTMENT in 2021

I often get asked about HOME INVESTMENT, “I’m earning Dh20,000 per month – can I buy a property in Dubai in 2021?”

My answer is determined on a stream of questions which is what I’m going to elaborate on. There are more factors that come into play when determining if we are able to buy a property than just our income. All these aspects are different for every individual.

For argument’s sake, let’s consider a purchase through bank financing, as most buyers are looking for a mortgage when buying ready properties. As a starting point, an income of Dh20,000 per month certainly crosses the minimum threshold to obtain a mortgage.

Generally, your monthly salary needs to be 4x higher than your monthly mortgage payments, which can further vary based on current liabilities. There are a few requirements the bank will ask to get started on the pre-approval.

● Salary Certificate

● Six-Month Salary Slip

● Six-month Bank Statement

● Loan Application Document

● ID Copies

Depending on the bank, the pre-approval validity can vary between 30-60 days and the cost from Dh500-Dh1,000. Once the pre-approval is in hand, make a point to understand how much the bank will lend and how much down payment to have in hand.

This pre-approval helps get immediate offers on distress assets that might be in the market for a short period of time. With a pre-approval, the seller gains more confidence in your ability to obtain the required finance to buy a property.

FIXING THE RATE… OR NOT

Since bank lending can go up to a maximum of 80 per cent, the buyer should have in hand 27.5 per cent of the property value to cover the down payment and all transfer-related expenses. At this point, decide if you want a fixed rate or a variable.

If the pre-approvals are sorted and based on the mortgage type, let’s start onthe fun part – property hunting.

HOMING IN

Based on a salary of Dh20,000 and not having any other liabilities, the bank will lend about 40x the monthly salary, which means Dh800,000. Since that is the maximum lending amount, let’s consider it to be 80 per cent of our target property value, therein allowing us to buy a property of up to Dh1 million.

The down payment along with closing costs would be about 27.5 per cent, which would equate to Dh275,000 out of which Dh200,000 would go towards down payment and Dh75,000 on closing expenses related to Land Department fees, the no-objection certificate, agency costs, mortgage registration, valuation and processing.

Let’s calculate what will the monthly repayments will be. Let’s consider we opted for the fixed rate mortgage for 20 years and at an interest rate of 3.5 per cent. Based on our borrowing of Dh800,000, we are looking at Dh4,640 a month, which is principal plus interest payment.

ADDING UP THE COSTS

On a two-bedroom apartment in Dubai for Dh1 million, which is about 1,200 square foot with an average service charge of Dh 12 per square foot. That means a monthly maintenance cost equates to Dh 1,200.

Factoring in mortgage repayments as well, we are looking at expenses of Dh 5,840 per month. If our purpose for buying the property is an investment for rental yield, then let’s see how much income we are able to generate. Let’s consider our property to be rented out at Dh 80,000, which equates to Dh 6,600 per month.

After deducting monthly outgoing in terms of mortgage payments and service charges, we are still looking at a positive income of Dh760 per month. Upon completion of mortgage payments over the next 20 years, we are now sitting on a fully-paid-up property generating rental yield with only the monthly service charges as outgoing.

If the purpose of purchase is to shift from being a tenant to live in our own property, then instead of paying a rent of Dh6,600 per month, we are now spending Dh5,840 per month on bank repayments and maintenance fee.

It’s a winning situation – whatever the purpose may be.

WATCH THE VIDEO VERSION OF THIS ARTICLE:

 

Source: Gulf News – Written By Aakarshan Kathuria

POST-PANDEMIC: UAE REAL ESTATE WILL OFFER QUITE A FEW CHOICES

There is only one topic on everyone’s mind right now, and no points for guessing what that is. I’m going to talk about what happens next.

I believe the first noticeable change will be in our spending habits once the world goes back to what we used to term normal. Where we used to freely spend our money — hard earned or easy — we might choose to be a bit more frugal. We have realized how critical it is to have savings and more importantly, the right investments.

In addition to savings, we will start to allocate our disposable incomes to forms of investments. Global stocks have seen a decline of 25 per cent; over 50 per cent of businesses globally have come to a standstill based on national directives, which means the ideal investments are hard assets.

There are multiple reasons as to why we should be bullish on real estate. Firstly, #StayAtHome and #WorkFromHome initiatives have taught us that a good portion of our work can actually be done over emails and video conferencing. This change in outlook on work will have a domino effect on our housing choices.

INCENTIVE TO OWN in Dubai

We will choose to upgrade to bigger homes, with more open space and study rooms. This will eventually result in us choosing to own homes as opposed to renting them, as basic human tendency dictates that if we are to spend all that time, money and effort on upgrades, we would rather do it on what we own. Buyers and tenants alike have started to express interest in villas and town houses as opposed to apartment or penthouses in Dubai.

Secondly, the drop in interest rates and a higher borrowing cap of 80 per cent will allow many to enter the market. If for instance we are buying a property at an interest rate of 3.5 per cent and which is generating 8.5 per cent gross income; then we are still taking home on average 5 per cent per annum. That is still far higher than in many international real estate markets.

Similarly, tenants who have 20 per cent deposits saved up could acquire their own property, wherein the mortgage payments will replace their rental payments.

INVENTORY DROP

Thirdly, we might see a reduction in inventory of short-term rentals. I see this trend changing not only because of reduced travel, but based on the comfort level of travellers. We might opt for known hotel chains, based on our expectation of hygiene standards that will be maintained by such property networks. Or else they will be held accountable for it. This will in turn put more units in the long-term rental market, which will create healthy competition for tenants and ensure landlords with the best maintained properties will fare the best.

LIQUIDITY SEARCH

Fourthly, I feel property owners might require liquidity to fund their business or perhaps other commitments, and in the instance they are unable to raise money, they might need to exit from their real estate holdings. They will need to do so in a time-bound manner, which will be prime-time for those investors sitting with funds to enter the market at attractive acquisition values.

While this might come across, as someone taking unfair advantage out of a pandemic, this has been an unsaid rule of business — one man’s loss is another man’s gain.

The UAE government has acted promptly to reduce the negative impact of Coronavirus. RERA confirmed the move to lower the cost burden on homeowners by reducing the service charges, which will give much relief to landlords. Dubai and Abu Dhabi tenants struggling to pay their rent during the pandemic are exempt from eviction as per new directives.

These gestures reflect the leadership’s humanitarian considerations at a time when people are facing never-before-seen challenges. In times like this, the UAE has proven that it looks after the interests of the entire society. This gives its investors the confidence to further bolster their contribution to the country.

WATCH THE VIDEO VERSION OF THIS ARTICLE:

Source: Gulf News – Written By Aakarshan Kathuria

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