Ask the Agent
Managing Director of Harbor Real
Estate and part-time instructor at
The Dubai Real Estate Institute
Everybody is telling me to invest now before the prices go up again. What’s your point of view?
Well, if you are taking a long term view your investment, definitely; or if you are currently paying rent and wish to live in your own home, absolutely. If you are financially secure, have the cash available, or have access to financing, opportunities abound. In essence, over the last three years, the real estate market has moved rapidly from a seller’s to a buyer’s market.
Nowadays, buyers are getting a lot closer to true value, particularly with the willingness of sellers to negotiate as more projects are handed over. There now exists a greater range of choice and you can succeed in obtaining true value and quality in the property you purchase. It is now that the fundamentals of purchasing or leasing real estate come to the fore: location, quality construction, infrastructure, return on investments and yield.
The biggest issue is the availability of credit. There are buyers who are willing to invest in their future but the availability of funds is the major inhibitor. It is also a time where your real estate broker will really work for you. Times are tight, and every transaction is precious. You will now find many licensed brokers who will work hard as your partner in the transaction, not merely acts as a facilitator who reaps commissions for little or no effort.
Based on your experience should I list my property at a higher price and they come down with my price?
Abdul Rahman A.
Your property is only worth as much as the buyer is willing to pay. With the buyers having access to sales statistics, market reports and the Land Department’s publicity published data and price indexes; they are more knowledgeable and cautious.
Your key marketing period will be the first month your property comes on to the market. Pricing your property too high at this period would result in a lower final selling price and a longer transaction time. Based on our experience, the properties that are priced realistically from the beginning of the selling process, sell faster.
If you are dealing with a professional and experienced broker, you will be getting fact-based advice regarding what your property should be priced as to achieve the quickest and the most rewarding sale possible.
A knowledgeable professional will provide you with comparative market analysis of your property and the area or any other comparable areas. If done properly, you will be able to make your own decision on a price and stick to the correct value of your property. Furthermore, you can always get a valuation from your brokerage firm, which by law will give the current accurate value of your home.
What is the best property to invest in?
Since the beginning of the infamous economic crisis, everyone has shied away from investing in real estate. Beginning 2012, slowly but surely, we have started witnessing an increased interest from long term investors who are seeking lucrative investment opportunity in real estate. Where else can you get six to seven per cent yields annually in addition to capital appreciation nowadays?
I personally believe the villa project offers an excellent investment opportunity. It’s a freehold project that boasts an excellent master plan and the villa designs are first class. The villas are available today at excellent prices, some at below DH700 per SqFt. Phase 1 of the project proved to be a big hit with the prices increasing between 15-20 per cent over the last 12 months.