Right Location Defines Real Estate Success
But location is not the only key to real estate success. It is the foundation for achieving success through investments. There are various lifestyle factors of the community, rent demands, price movements, and developments in Dubai, which differ by community. The choice of the right place will affect the income from rentals, capital gain, rentability, and return on investment.
There is no underestimating the significance of Right Location Defines Real Estate Success in Dubai’s vibrant real estate market environment. The right property in the right location means more appreciation and occupancy and, therefore, higher value. On the other hand, a good-looking property placed in a terrible locality, in an isolated area, or in an oversupplied area may not even sell.
At ZSM International Realtors FZE, our property and investment advisory services include assisting our clients in identifying the right potential property that offers investment opportunities in line with their financial and lifestyle needs and investment strategies.
Research the Market Dynamics
The real estate market in Dubai is very dynamic, and the construction of new infrastructure facilities, government projects, business centers, growth of tourism and urbanization can influence the value of properties.
It is important to conduct research on a particular place prior to making any investment decisions in order to understand the current condition and opportunities for improvement in the future. Construction of new roads, malls, schools, business centers, lifestyle destinations and even metro lines could increase the demand and thus the value of properties in the future.
ZSM International Realtors FZE carries out the thorough research of the market and performance of the community in order to provide our clients with valuable information. Thanks to this research we are able to determine the areas with good growth potential for investors.
Some of the factors that need to be considered include:
- Infrastructure development to come
- Metro/transport link
- Major development in terms of business and employment opportunities within the area
- Tourism and lifestyle development
- Urban development by the government
- Movement of prices in the past
- Community planning for the future
The location is very important for getting maximum long-term value from the property in Dubai.
Proximity to Key Landmarks
Proximity to important areas may directly affect the demand, rent, and resale value of the real estate. Tenants and home buyers would always appreciate proximity to work places, schools, shops, medical facilities, public transport, and entertainment options.
Downtown Dubai, Business Bay, Dubai Marina, Dubai Hills Estate, and Jumeirah Village Circle continue being good neighborhoods because of their good connectivity and quality of life. The localities near business hubs and metro stations are highly favored by businessmen, whereas those located near schools and parks are preferred by families.
Points to be considered when evaluating a property include:
- Guidance on how to access metro stations and major road networks
- Proximity to business districts
- Schools and universities in the area
- Close to shopping malls, entertainment centers, restaurants, etc.
- Proximity to medical care centers
- Facility for ease of commuting
- Closure of beaches, parks, or lifestyle destinations
A site that offers convenience of living becomes an attraction point for tenants and buyers.
Analyze Supply and Demand
Supply and demand are important determinants for real estate performance. Should there be excess of similar real estates in a particular locality, then such real estates will be subjected to pressure in terms of rental pricing and value in resale. The locality may enjoy high appreciation and rental performance in case of high demand and low supply.
High supply localities will be useful if they come at low cost of entry and are good for construction, although investors need to carry out proper analysis on whether the units supplied will be in demand in the market. Localities with low supply may be considered as exclusive but may also attract investment portfolio.
Prior to investing in a real estate, our clients can make use of real-time information from ZSM International Realtors FZE.
The following is some key data related to supply and demand:
- Listing of properties for rent or sale at the property level
- Project handovers coming up
- District-level average rental returns
- Absorption rates in the market
- Historical prices trends
- Trends in demand by tenant types
- Tourism and/or population-based demand
- Developer presence and time lines
Understanding the dynamics of supply and demand in the market could assist investors in avoiding crowded areas and areas with potential for growth.
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