From massive multi-use complex to personal signature home, any investment in land starts with the same step: choosing the right plot for your requirements. There are some considerations to be made, that must be made to ensure your investment in plots is truly a rewarding experience. Let us start with the basics.
Yes, location is everything and that is why this cliché is timeless. Most investors are after prime properties – and rightly so, because they bring instant connectivity, services, amenities and more facilities nearby that bring higher returns on investment. But here in Dubai, do not discount some great options for building outside of the ‘downtown’ area. Some of the best payment plans and price/sqft come with investing outside the center, and not necessarily at a cost on profit to you. The past few years have shown the rise of ‘rural’ Dubailand for example, with distant developments becoming some of the most popular among Dubai renters. Sometimes the best opportunities for commercial investment come from catering to neighborhood developments in much need of services, meaning you can capitalize on being the first to service up and coming communities. Things really do change overnight in Dubai, and that is why it is important to speak to someone holding extensive knowledge of the market, and information on what’s coming next.
As with all the rest of the considerations on this list, plot type is too extensive a topic for one paragraph, but know this: there are different types of land on the market. While that may seem obvious, each type has its own set of considerations that need to be made. The 4 basics when it comes to type of land available for freehold development in Dubai are: residential, commercial, industrial and mixed-use. This can then be broken down into land for: villas, townhouses, apartment towers, office towers, hotels, warehouses, labor camps, hospitals & clinics, schools, malls, factories, and so on and so forth. Understand your requirements and your budget, and speak to a specialist.
Do a study of the plot, always. You don’t need to be big investor for this to matter, but if you are a big investor, you know that nothing starts until the numbers look good. You need to understand price/sqft, value of surrounding area, cost of construction, built up area, and all the elements that go into making your investment in land, a profitable one.
For the personal home, a signature house could cost you a lot less than a ready one. That is something most homebuyers in Dubai aren’t aware of: and that includes the cost of rent while waiting for your home to be ready. Sit with someone to look at the numbers, and choose the right option for you.
There are more than one ways to make money off of land. Starting with type of plot, to investment type. We’ll consider in more detail strategies for buying land, but this includes: buying to sell, buying to hold, buying to develop and hold, buying to develop and sell, and buying to develop and rent. You must have a plan in place, always, and you don’t have to be a big investor for this to apply. Always think about the ROI, even if you plan to develop for yourself to use. There should be a future consideration for every investment you make.
There is so much more to land investment than could ever be covered in one post. The most important consideration will always be: Your Budget & Your Requirements.
We’d like to personally welcome you to this portal, set with an aim to educate Dubai investors on all the elements that go into freehold land & plot development. Feel free to leave a question for us to address in our upcoming posts. Grow along with this site, as you lead the knowledge that is shared for the benefit of all investors, bodies and brokers in Dubai.