How to make a profit by reselling a property in Dubai?

How to make a profit by reselling a property in Dubai?

Dubai is one of the world’s fastest-growing megacities, where you can resell unfinished housing for a large profit.

The primary reason to consider purchasing off-plan properties is the stable increase in their value. Real estate prices in Dubai grow annually. In 2022 alone, the cost of under-construction projects increased by 17–23%. The choice of properties for subsequent resale in Dubai is extensive, and the demand for apartment and villa rentals remains high due to the continuous population growth.

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Why do property buyers choose Dubai?

Dubai is a major international aviation hub, providing easy access to many cities worldwide. Freehold areas, of which there are over 60 in the city, allow foreigners to buy property with full private ownership rights.

Foreign investors prefer Dubai because it has loyal migration legislation and a favourable tax regime. For example, there is no personal income tax here. A 2-year extendable visa can be obtained by purchasing property in Dubai worth at least $204,000. And by acquiring property worth at least $545,000, you can qualify for a 5-year Golden Visa.

How to make a profit by reselling a property in Dubai?

The UAE’s most promising real estate market

Dubai’s real estate market is arguably one of the most steadily developing in the world. Here, ambitious new projects are regularly completed, and incredible construction records are set. It is here that the world’s tallest building, the Burj Khalifa, was erected. Currently, in Dubai Creek Harbour, a new tower is under construction, set to surpass the Burj Khalifa in height by 100 metres.

The sales volume of properties in Q3 2023 exceeded $29.73 billion, a 57.2% increase compared to the same period in 2022. Now is the best time for lucrative deals on purchasing apartments in development projects in Dubai during the construction phase for resale.

New off-plan buildings in Dubai for resale

Let’s explore the areas that offer profitable investments in off-plan houses and apartments in Dubai.

Housing options for successful investments

ProjectDistrictDeveloperMinimum Price (USD)
DAMAC Hills Dubailand DAMAC Properties 206,500
Mohammed Bin Rashid City (MBR City) Mohammed Bin Rashid City Sobha Group, Meydan Group 149,500
Mudon Dubailand Dubai Properties 517,000
Reem Dubailand Emaar 748,500

Dubai Marina, Palm Jumeirah, and Downtown Dubai remain investment-worthy destinations. The beachfront districts of Dubai Marina and Palm Jumeirah have always enjoyed high demand. The central community of Downtown Dubai has a stable real estate market that attracts the attention of foreign investors. It is home to Dubai Mall, the Burj Khalifa tower, and The Dubai Fountain. Currently, several luxury hotels with serviced apartments, offering 5-star hotel services, are being constructed in this district. Purchasing property in such complexes ensures a profitable investment.

Speaking of Dubai’s best locations for investing in off-plan homes, it is worth mentioning Jumeirah Lake Towers, Jumeirah Village Circle, and Business Bay. These areas consistently experience high demand for rentals due to their strategic location and well-developed infrastructure.

How to make a profit by reselling a property in Dubai?

Fast resale of real estate in Dubai

How can you resell an off-plan property for a significant profit? Investors have this opportunity even if the complex has not been completed. It is enough to have an off-plan property ownership certificate (Oqood), which is obtained by every buyer of under-construction homes.

However, it is important to keep in mind that it is only possible to resell an apartment in Dubai shortly after purchase if the payment status meets all the requirements set by your construction company. For example, reselling an apartment in Dubai from Emaar Properties is only possible after paying 40% of the total cost. Therefore, it is crucial to check with the developer about all the requirements before making the purchase.

Is it safe to buy an off-plan property in Dubai now?

Two main factors prove the security of buying off-plan real estate in Dubai: the developer’s responsibility to the state and the instalment payment.

The Dubai Land Department (DLD) must register all residential and commercial real estate projects, and all transactions are under its control. Investors’ money does not go directly to the builder but to a special escrow account. The developer gets access to the buyer’s money only after reaching a certain construction stage, and all its subsequent expenditures are also controlled. If an exceptional and unforeseen situation occurs and the project is frozen, the state will quickly find another developer to complete the construction. Otherwise, the money in the escrow account will be returned to the buyers.

The DLD includes the Real Estate Regulatory Agency (RERA), which sets requirements for developers. Each developer must comply with them to obtain a construction licence and then list their properties for sale.

Among the mandatory requirements for developers are 100% ownership of the land where the building will be developed and a performance guarantee of 10% of the total cost of the project. Before the sale, the developer must deposit 20% into a dedicated account or complete at least 20% of the construction work.

Payment instalment plans are also considered a guarantee for investors, as buyers pay only a small portion of the property’s cost in the initial stages of construction. Depending on the payment plan, up to 80% of the amount is paid when the project is ready to be commissioned, or in some cases, over several years after completion.

Are there any risks of losing money on resale in Dubai?

Despite the above, investors should be aware of the risks when investing in off-plan housing. These risks are late completion of construction and fluctuations in market prices.

To have the property handed over on time, the main thing is to choose a reliable developer with an impeccable reputation. All information about construction companies is available, including on the website of the Dubai Land Department. Even if the project is delayed, you will be able to receive compensation for damages; the development company will offer you additional services for free as compensation for damages or refund part of the money.

Even professional analysts cannot predict changes in property prices. The market depends on the economic trends in the world and the region. If the price of your property falls before the completion of construction, there is no reason to panic; losses can be offset by renting the unit out. To resell real estate in Dubai profitably, you need to wait for the market situation to stabilise.

How to make a profit by reselling a property in Dubai?

We will help you make money by reselling properties in Dubai

Contact our specialists to learn how to profit from reselling an apartment in Dubai and invest in a reliable and lucrative project. You will receive information about the developer’s reputation, the most profitable district, and which property suits your chosen strategy. Smart investment will minimise risks when reselling residential real estate in Dubai, enabling you to gain profits of up to 30%.

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