When it comes to investments, real estate is a safe and sound asset in comparison to stocks or foreign exchange currencies. In less volatile political environments such as the United Arab Emirates, premium real estate can be a smart buy. The considerable number of expatriates in emirates such as Dubai can be credited to its free and liberal environment, its role as a global business hub, and increased investment in job opportunities and quality of living.
The city’s majority population comprises expats, accounting for 85 percent of the city’s population and 71 percent of the total population. This makes real estate in Dubai a strategic investment vehicle for those looking to enter the real estate market. And much like any housing market, location matters.
Whether you’re a first-time buyer or looking to add a second property to your real estate portfolio, location will be a determining factor in the process of finding your new home.
Here are the signs to look out for to know you’ve found the best location for your new home.
1. Well-appointed neighborhood
Ignoring the importance of your home’s neighborhood can be a drastic mistake in the long run, particularly as a first-time buyer. Bad neighborhoods come in many disguises, so be aware of potential red flags. Neglected property, vacant buildings or proximity to city services can be potential red flags that your new home is in a poorly-managed location.
Instead, seek out homes in neighborhoods with well-appointed amenities. Your new neighborhood should feel like a celebration of community in its truest sense. Your new home should be bettered by its surrounding areas and opportunities.
Are there community amenities like parks, play areas, sports and health facilities, a convenience retail center, salons, clinics or a hospital, and similar necessary infrastructure?
As a new homeowner, your neighborhood should offer you advantages that emanate peaceful, wholesome living and privacy.
For homeowners, safety will continue to remain as a top priority.
Those who live in areas with roughness and higher crime rates may find it harder to resell their home. Other considerations to be made regarding an unsafe area is the high cost contributed to theft losses, the feeling of constant fear and peril, and the necessary installation of security systems.
When seeking out prospective locations, research crime statistics of the surrounding areas. Little to no incidence of crime is a good indicator that your new home is located in a safe environment that will allow your family to grow in a quality neighborhood. Investing in a new home located in a safe area will allow you to maximize its value and investment should you decide to sell it.
If you’re investing in the UAE, or Dubai in particular, safety should be an easy factor to settle since there is a very low crime rate in the country as a whole.
3. Proximity to leisure activities
For potential homeowners, what they enjoying doing with their allotted free time can be a deciding factor in determining their new home’s location. Seek your home in a place that is well-situated in environments that allow you to take full advantage of the leisure activities you enjoy.
If you crave the sea and amazing sunrises and sunsets, Palm Jumeirah in Dubai with its stately homes and resorts may be for you. Those aspiring for a refined lifestyle complete with world-class attractions, breathtaking architecture and sweeping parklands and sublime beaches may find Mohammed Bin Rashid Al Maktoum City the ideal location.
By narrowing down location factors important to improving your quality of life, then you’ll be sure to get your money’s worth in the long term.
4. Culture and lifestyle preferences
While a home can be adjusted and amended to reflect the preferential lifestyle of its homeowners, the location cannot. So while your dream home may reflect your lifestyle preferences, your location should as well.
Do you prefer a more walkable environment? Or perhaps you particularly enjoy waking up to unobstructed sunrise views. Maybe you require a high-rated educational institution for your growing family.
Take into consideration lifestyle preferences when selecting the right neighborhood for your home. A location that combines your personal aspirations and desired social connections can help determine the right location. Matching your lifestyle preferences with your location desires will enable you to find the home of your dreams.
5. Investment potential
When it comes to financial benefits, one of the most enduring qualities of homeownership is price appreciation. And where you live plays a critical role in price appreciation and how much home equity and wealth your home builds over the years. To that end, potential home buyers should dedicate some time researching demographics and economic trends before investing in a property.
Dubai’s many neighborhoods, from Downtown Dubai to the Arabian Ranches, make it a model city to invest in property. Committing to the Dubai real estate sector can potentially yield real estate investors high returns on their investment. Dubai’s unique, luxurious experience offerings such as desert safaris, yacht communities and gourmet restaurants that span the globe are increasing and supplying demand for rental properties.
Other deliberations that make Dubai real estate such a hot commodity for investors is the approach of the next World Expo. To be hosted by Dubai in 2020, the Expo is sure to bring millions of visitors to the city seeking rental properties during their stay. Couple this with the city’s current booming tourism and hospitality industry, and you have a real estate economy ready to provide investors with high returns.
There are several other considerations to be made in regards to a location’s economics in conjunction with homeownership, such as:
- The potential transformation of the neighborhood
- Annual property tax; though it must be noted that Dubai real estate market has no annual property tax per se
- Commute time and public transportation options
- Proximity to an airport
- Healthcare facilities
- Home investment period
These considerations may not be the largest determinants of location-based homeownership, but they still play an important role in not only the future price appreciation of your home but also on the quality of life you can expect in your new environment. It is impossible to fully predict how these considerations affect every potential home buyer, but they are well worth studying.
The intangible benefits these considerations bring to your quality of life, peace of mind, and pride of ownership should make them an integral part of your homeownership decision.
With its a booming economy, low crime rate, high standard of living and no annual property tax, Dubai is poised and ready to be the ideal real estate location for the investment and purchase of your new home.