Buy Real Estate in Dubai - Experiences? Yield?

[bigbite100]

Hello,

has any of you bought real estate in Dubai before? What are your experiences? Is it likely to get scammed?

If you buy it for investment reasons, what is the yearly yield you can realistically expect? With short term airbnb rentals and also with long term rentals? Since it is also depending on the location, which locations would you recommend for that cases?

Thank you.

 

[Martin Everson]

I am totally out of date with Dubai market as things move very fast.

@Fred Can you help here?

 

[Fred]

Hello,

has any of you bought real estate in Dubai before? What are your experiences? Is it likely to get scammed?

If you buy it for investment reasons, what is the yearly yield you can realistically expect? With short term airbnb rentals and also with long term rentals? Since it is also depending on the location, which locations would you recommend for that cases?

Thank you.

Don't.

For personal use and subjective reasons but not for investment.

 

[ShillGates]

the problem is, lots of it is empty. Most people are just buying it for speculation , flipping. All estate agents are always shilling the newest of the newest, so as soon as your building is x years old, good luck. Ofcourse they all say - location and particular unit BS, truth is. Unless its bluewater or some other hot place. It is a joke.

Take into account also that estate agents earn a lot here. The developers are handing out 5% fee to the agents. IF existing, the estate agents like to charge 2% buy seller+ dld 4% plus all kinds of fees.

 

[pomegranate]

Don't.

For personal use and subjective reasons but not for investment.

Interested to know why you think it is not good for investment?

 

[Konstanz]

Interested to know why you think it is not good for investment?

Market has heavy oversupply. Most case very low quality construction.

 

[JustAnotherNomad]

I know someone who bought an apartment in JBR a couple years ago when she was still living here. Prime location. It only lost in value year after year. She moved home and was renting it out via AirBnB, but losing money every year. In the end, I think she sold it during covid at a huge loss, I'm not even sure if it covered the remaining mortgage.
Now it's probably worth 10x of what she sold it for again... The market here is crazy.

 

[Fred]

I know someone who bought an apartment in JBR a couple years ago when she was still living here. Prime location. It only lost in value year after year. She moved home and was renting it out via AirBnB, but losing money every year. In the end, I think she sold it during covid at a huge loss, I'm not even sure if it covered the remaining mortgage.
Now it's probably worth 10x of what she sold it for again... The market here is crazy.

That's right but on the other side what asset is not 10x since 2020?

If you make it big with your own cleaning company, holiday home snd even a small real estate broker - fair enough - but I have never seen something retail making good yield except the clients purchasing prior 2020/2021.

 

[Moonlighter]

If you're experienced and buy a property off plan from a trusted developer you can be lucky. Timing the market is close to impossible and the chances you'll loose money is high. There are so many shady real estate agents that ghost immediately after the sale.

Ultimately the risk reward is just not worth it, put your money into a money market fund and enjoy decent yields, while keeping your funds accessible.

Also the current real estate market is running hot, Nakheel is even restarting palm Jebel Ali after wiping out previous investors.

 

[Nicholas Van Orton]

the problem is, lots of it is empty. Most people are just buying it for speculation , flipping. All estate agents are always shilling the newest of the newest, so as soon as your building is x years old, good luck. Ofcourse they all say - location and particular unit BS, truth is. Unless its bluewater or some other hot place. It is a joke.

Take into account also that estate agents earn a lot here. The developers are handing out 5% fee to the agents. IF existing, the estate agents like to charge 2% buy seller+ dld 4% plus all kinds of fees.

Word. Enough said.

 

[Konstanz]

I lived in Marina Gate and I can confirm that quality is terrible.
It's just couple years old and already looks like 15 years old.
Already worn down. Everything inside very low quality

 

[bigbite100]

good to know, didnt expect these type of replies. thanks to all for sharing your knowledge and experiences

 

[troubled soul]

Better to focus on Positive site....Lets find out which are the top quality building in Dubai for investment
I started New Thread here
https://www.offshorecorptalk.com/threads/best-quality-building-dubai-for-investment.41320/

 

[EliasIT]

Don't.

For personal use and subjective reasons but not for investment.

Is it true that property can still be bought with fully privacy? I.E no one is knowing I own property in Dubai?

 

[JackAlabama]

Is it true that property can still be bought with fully privacy? I.E no one is knowing I own property in Dubai?

No. If one cares enough to look, you can be found, unless its not you who buys.

 

[Fred]

Is it true that property can still be bought with fully privacy? I.E no one is knowing I own property in Dubai?

Yes - Person A can still buy and register a Property in Name of Person B and even a Person C can make the payments for it.

@Martin Everson mentioned this already somewhere here in the forum as well.

 

[AndyAresa]

Person A can still buy and register a Property in Name of Person B and even a Person C can make the payments for it.

Hi Fred, is this possible in Dubai only? Do you know if this is still possible in some EU countries? Person A buys and registers property and the buyer is paid by Person B?

 

[Fred]

Hi Fred, is this possible in Dubai only? Do you know if this is still possible in some EU countries? Person A buys and registers property and the buyer is paid by Person B?

I'm out of EU since 6 years - sorry.

I see that lots of clients still doing such things in EU but it seems complex and not risk free to be honest.

 

[Paul Tudor Jones]

"An image is worth a thousand words"

 

[Konstanz]

Hi Fred, is this possible in Dubai only? Do you know if this is still possible in some EU countries? Person A buys and registers property and the buyer is paid by Person B?

Yes it is possible. For example, person A incorporates EU company , Person B loans money to EU company and company buys property. There are many ways to structure everything. It's just important money is legal and there is trust between A and B
You should hire local lawyer in EU country to sort everything out
BTW in some EU countries you can still buy properties through offshore companies, trust and don't really need to disclose UBO.
Everything varies country by country

View attachment 4802

"An image is worth a thousand words"

I don't like such statistics, because it does not show real picture.
If you look at most luxury properties, I bet you see different chart
Most of real estate in Dubai is trash it's true and value is decreasing.
But if you want really good quality, I think its possible, but it costs more and more money as any place in the world