Real estate attracts you but you do not know which investment strategy to turn to? The real estate market can indeed seem opaque to first-time Apartments in Dubai and new investors. However, it offers many possibilities. What are the good reasons to invest in real estate? Which strategy is best suited to your situation and your goals? Become a smart investor !
Why invest in real estate?
Between buying an apartment in Dubai to make it your main residence, making a rental investment or saving in real estate investments, it is sometimes difficult to make a choice. Developing your wealth, supplementing your income, reducing your taxes, preparing your future and that of your children Investment strategies in real estate, which are particularly diversified , offer many opportunities. Carrying less risk than financial solutions, the stone remains one of the preferred investment vehicles of Dubai. In recent years, the craze for real estate investment has not died down, on the contrary.
Real estate investment also has other advantages. Depending on your investment strategy, you will be able to:
- Increase your income thanks to the rents received as part of a rental investment;
- Diversify your assets between financial investments, movable property and real estate;
- Boost your savings thanks to a rate of return that can exceed 10% gross per year;
- You prepare to lower your income in your retirement by paying off your mortgage during your period of activity;
- Supplement your pension;
- Build up a lasting and tangible heritage ;
- Reduce your taxes by taking advantage of real estate tax exemption schemes;
- Pass on your real estate assets to your children.
Become the owner of an apartment or a house
When it comes to real estate investment, buying a home, house or Apartments in Dubai is often the first solution considered. His advantages ? Adapt to the budget of a large number of households. Indeed, the range of real estate prices in Dubai Is particularly wide. You can opt for the acquisition:
A studio, a multi-room apartment , a house or a large villa;
New Apartments in Dubai , off-plan (Sale in the Future State of Completion), old , with or without work, etc.
But the main choice lies elsewhere: future owners can decide to buy for them or buy to rent.
The rental investment and the purchase of a principal residence present notable differences. In Dubai, buying your home is a life project carried by many households. Thus, 57.6% of Dubai people own their main residence according to the study carried out by INSEE in 2018 . To feel at home, do the work you want, start a family, secure your future and no longer pay lost funds, this option is quite attractive.
Diversify your wealth thanks to real estate investments
Do you want to invest in stone for only a few hundred euros without taking on the management and rental risk? This is what real estate funds and collective real estate investments allow. Also called “paper stone” , this solution is an alternative to traditional investments (savings accounts, life insurance, etc.).
The principle of real estate companies in Dubai investments is as follows: an investment fund collects savings from individuals. At the same time, he invests his money in different types of real estate assets: offices, residential housing, shops, warehouses, etc. Thus, you indirectly become the owner of part of this real estate stock and you receive monthly, quarterly, semi-annual or annual remuneration.. Without having to take out a home loan and starting with a smaller capital investment, you have very attractive prospects for a return on your starting amount. Another significant advantage is that these assets make it possible to diversify one’s assets while minimizing administrative constraints: no need to manage the tenants in place, the real estate agency, the works, etc.
Real estate crowdfunding to boost your savings
In terms of land investments, a new category of savings product is developing very quickly: real estate crowdfunding. This is a financing technique based on online collection platforms . These connect individuals and project leaders with financial needs. Construction of housing, construction of an industrial building, renovation of a building … from € 100 , the investor can take part in a real estate project. In return, developers or builders offer particularly attractive rates of remuneration. With an average annual rate of return of 9.2% in 2019, it is thus possible to make money work efficiently.
Fundimmo and Hello crowdfunding enlighten us thanks to an in-depth analysis of the real estate crowdfunding market in 2019. In a few figures *:
- + 102% growth in collected savings in 2019;
- an average growth of + 80% since the creation of real estate crowdfunding;
- an average amount invested of € 1,581 per saver;
- more than 400 real estate projects financed using this tool in 2019.
Forests and vines to increase your income
Thinking of becoming a landowner of agricultural land? Investors looking for a meaningful and sustainable investment strategy will find something to suit them here. Note all the same that this option is intended above all for those who already have a substantial heritage and wish to diversify it. This prerequisite established, several advantages to the possession of forests, vines or cultivable plots are to be noted:
A partial or total exemption from the tax on real estate wealth (IFI);
Numerous possibilities to make this investment profitable : realization of capital gains on disposal, rental in the form of an agricultural lease, rental of hunting and / or fishing rights, etc.;
Of inheritance and transmission at reduced rates, up to 75% on certain types of land, especially forests.
Transform a business into a home
A commercial space, a warehouse or a real estate companies in Dubai can, under certain conditions, be transformed into a dwelling. With selling prices much lower than those of habitable housing, premises and professional offices can generate significant capital gains … provided you make the right choice!