Increasing the real estate investment return in the Emirates is considered one of the business priorities of investors, whether expatriate citizens or foreigners of different nationalities. Businessmen aspire to invest their money in the UAE real estate market and achieve a high percentage of profits as profitable investment returns after comparing them with the basic cost of the property so that it remains sustainable in the foreseeable and long term.
Investment returns have crystallized with a high and permanent increase in them, coinciding with the significant development of the urban and real estate movement in the Emirates in recent times, whether at the level of buying, selling, or renting various commercial and residential properties. Through the lines of our next article, we will shed light on the best strategies and successful tactical methods to increase real estate investment returns in the Emirates.
Increase real estate investment return in UAE
Effective strategies to increase your real estate investment returns
There are many successful strategies to increase the return on your real estate investments, the most prominent of which are the following:
Choosing the appropriate location for the property to increase the return on real estate investment
The location of the property plays an important role in determining its market value and its high investment return. Buying, selling, and renting real estate in vital areas achieves high and continuous investment returns. Especially exceptional locations in city centers close to major facilities and service institutions such as schools, hospitals, nurseries, and shopping centers in the UAE and other countries as well.
Careful research into the real estate market
The novice investor needs to follow an organized strategy, based on deep research, to understand the UAE real estate market before starting an actual investment. This is with the aim of studying and analyzing the trends and dynamics of the real estate area in which he desires to buy, including price expectations whether they will rise or fall, as well as paying attention to the specifications of the property and the method of financing it, whether in cash or through real estate financing loans. This will pave the way for obtaining amazing investment returns in the future.
Create a solid investment business plan
Having a well-thought-out and strong business plan in the field of real estate investment is extremely important to illuminate the path and provide guidance to reach the expected financial goals. The investment plan usually includes a mechanism for searching for real estate, determining its prices, and studying the extent of profit from it when selling again or renting, thus increasing profits and investment returns in a guaranteed way in the short and long term.
Increase real estate investment return in UAE
How to achieve higher profits from your real estate investments
You can get high profits and increase the return on your real estate investments through the following methods:
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Buying real estate at competitive prices:
Searching for the cheapest prices and the most competitive offers is one of the most important ways to obtain future profits. Also, increasing the return on real estate investment, especially when purchasing the property at a cheap price and reselling it at a higher price or renting it at prices consistent with its current market value, and benefiting from the differences in costs and prices and making a profit from them.
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Choose the property carefully:
There are huge offers of properties designated for investment in the Emirates. This puts the investor in front of somewhat difficult choices. However, it is necessary at this stage to determine the type of property most suitable for investment, in terms of location, area, and specifications, for the possibility of selling and renting it later and making profits from it.
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Renting real estate:
Buying a property and re-renting it at prices commensurate with the market is an effective way to increase the return on real estate investment. Whether through concluding monthly or annual rental contracts between the landlord and the tenant. Especially if the property is located in a vital and desirable location for tenants who pay the requested price without any procrastination or delay.
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Relying on real estate financing:
Real estate financing loans provide golden opportunities to buy and invest in real estate in the Emirates. It is also attested to pave the way for obtaining high profits and investment returns in the near future. Especially when interest rates and finance charges are acceptable and do not conflict with the profit rate.
Real estate improvements aimed at increasing investment returns
Real estate generally requires some external and internal improvements to ensure an increase in real estate investment returns, including the following:
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Modifying interior decorations:
Properties from time to time need interior design renovation. This improves the appearance of the building and keeps pace with modern urban development. Improvement may include replacing old flooring with new, distinctive types, as well as changing kitchen and bathroom ceramics, wallpaper, and paint colors. In addition to the possibility of exploiting wasted spaces with unique and aesthetic ideas.
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Exterior modernization of the property:
Periodic maintenance can be carried out on the building’s exterior structure, especially if it is exposed to deterioration due to external factors. This is done by adding moisture and heat insulating materials, also changing door models, or painting them in new colors. Especially those overlooking the balconies, to give an aesthetic appearance to the facade of the property, thus attracting attention to it and selling or renting it at reasonable and profitable prices.
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Adding new rooms to the property:
It is possible to add new rooms to the property if there is enough space for it, whether bedrooms or a neutral room, which can be used as an office or a room for secondary items. This would attract buyers or renters to the home, thus increasing its real estate investment return in the future.
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Improving service facilities:
It is possible to plan to increase investment returns for real estate by adding filtration and water-saving systems. Also, relying on means of rationalizing electricity and using safe and reliable building materials to ensure prolonging the life of the building and preserving its external structure and interior decoration for as long as possible.
Successful investors’ tactics to increase real estate investment returns
If you want to increase the return on your real estate investments, we advise you to follow the following tactical methods:
- Make sure to build strategic relationships, through which you establish effective partnerships with successful investors in your business environment.
- Rely on modern technological tools to manage and invest in your real estate, including real estate market analysis methods and financial metrics that guarantee you real profits and amazing investment returns.
- Use the automation system to conclude rental contracts and examine tenants, ensuring permanent and effective follow-up of the collection of monthly or annual rent amounts. It also contributes to managing the rental of real estate efficiently and confidently, saving the investor’s money and increasing his profits accordingly.
- Invest in various types of real estate for sale or rent, whether residential or commercial. Try to plan intelligently to know the best time to invest and profit from it.
How to direct your real estate investment to achieve higher returns
Direct your real estate investments and achieve high investment returns by following the following strategic methods:
- Use a reliable company to manage your investments: If you are a beginner in the field of real estate investment, it is better for you to rely on a company to manage your properties. So that you benefit from the great experience possessed by these companies and the legal mechanism that regulates the relations between the buyer and the seller, or the landlord and the tenant.
- Invest in the areas where you belong: Investing in real estate in the surrounding environment can achieve a high increase in the return on real estate investment. The investor is fully aware of the real estate market in his area and also has the ability to make selling and renting decisions with greater confidence and at prices consistent with local prices.
- Rely on long-term benefits: Real estate investors must choose long-term and sustainable returns. And do not neglect short-term returns that achieve reasonable temporary profits as well.
- Invest in ready properties: You can quickly increase your investment returns by investing in ready properties. Especially with customers’ demand to buy or rent ready-made properties, while the under-construction real estate market declines.
How to exploit the available opportunities to achieve better profits in real estate
There are many important opportunities to achieve an increase in the profits and returns of real estate investments, including the following:
- Develop a real estate management business plan that ensures investment in real estate available for short or long-term periods.
- Continuous research and monitoring of all developments in the UAE real estate market.
- Analyzing the real estate market and constantly studying legal and financial matters, and knowing how to adapt them positively to achieve higher profits in the future.
- Investing in different types of real estate. Including houses, offices, villas, and lands, according to the local market trend.
- Diversifying real estate investment between buying, selling, and renting, so that we can understand the target audience of customers and work to meet their requirements accurately and safely.
Daily habits of successful real estate investors in increasing their returns
The best successful habits to increase real estate investment returns are as follows:
- Determine the budget and calculate operating costs and real estate investment accurately.
- Familiarity with the type and value of real estate taxes imposed on investors.
- Thoroughly inspecting properties and performing the necessary maintenance on them with the aim of renovating them and maintaining their external and internal structure and infrastructure.
- Do not neglect real estate financing installments and fees due for obtaining real estate loans in the event that they are needed.
- Paying attention to service facilities (electricity, water, gas) and working to improve them and maintain their extensions on a regular basis.
New strategies to enhance real estate investment profits
The most important strategies that will stimulate increased returns on real estate investments are as follows:
- Buying a property and keeping it for a long time, then selling or renting it at current prices. This helps maintain its market value and achieve fair growth in investment returns.
- Buying and renovating real estate from inside and outside and selling it at a higher price and benefiting from the new profit difference.
- Buying and renting real estate and relying on rental income to pay real estate financing installments, thus benefiting from negative debt and increasing real estate investment returns in the long term.
- Purchasing land designated for construction, establishing construction projects on it, and selling them off-plan, under construction, or as ready-made properties at varying profits.
Effective ways to reduce risks and increase real estate investment returns
Several effective methods can be followed to confront risks and increase the return on real estate investments, the most important of which are the following:
- Familiarity with legal issues related to the sale, purchase, and rental of real estate. This is with the aim of drawing clear lines and not crossing them to define the relationship between the landlord and the tenant or between the seller and the buyer and to know the limits of each party.
- Do not exaggerate costs, set a specific budget to move according to, and do not pay any excess amount.
- Keeping abreast of real estate market updates and constantly following up on regulatory amendments
- Conducting a comprehensive and accurate inspection of properties designated for investment and working to fix technical and structural defects and problems.
- Create a backup plan to refer to when the current plan fails. Including having another property for investment, or not wasting all of the capital in one investment.
With this amount of information, we have reached the end of our article, which focused on how to increase the real estate investment return in the Emirates. Through its lines, we reviewed the most important strategies and methods to achieve profits and expected investment returns in the short and long term, but it must be noted that it is necessary to follow preventive measures to reduce emergency risks in the real estate investment market. And do not neglect it, in order to avoid any obstacles or potential financial losses.
