Realiste, the pioneering AI proptech company in the UAE, has identified the top five risks of investing in Dubai’s real estate market using data and insights from their AI-powered platform, “Index.” This analysis provides crucial insights for investors looking to navigate the dynamic Dubai real estate market.
As Dubai’s real estate market has evolved through time, it has become a destination for beginner and experienced investors from around the world. However, it is important to recognize that in emerging markets, it is possible to be caught off guard by all the existing risks and pitfalls. Below, Realiste highlights five typical risks and how to deal with them.
- Resale Problem: Realiste’s Index reveals that the resale of properties in Dubai can be challenging due to the dominance of realtors in the market. The solution, according to Realiste, is to calculate your profit, taking into account a selling cost of at least four percent.
- Market Volatility: Dubai’s real estate market is known for its volatility. However, Realiste’s Index suggests that the market is likely to continue growing due to the influx of international investors seeking a safe haven for their investments.
- High Service Charges: Service charges in Dubai are high due to amenities and AC costs. Realiste advises investors to factor in these costs when calculating potential returns.
- Hype Projects and Locations: Many investors are drawn to high-value projects and locations in Dubai, often paying a premium for them. Realiste’s Index provides comprehensive analysis and recommendations on these projects, helping investors make informed decisions.
- Off-Plan vs Secondary Market: Realiste’s Index shows that off-plan projects are often more expensive than similar projects on the secondary market. The solution, according to Realiste, is to diversify investments between the secondary and primary markets.
“As Dubai’s real estate market continues to evolve, Realiste is committed to providing cutting-edge analysis and innovative solutions to help investors navigate the market and make profitable investments,” stated Alex Galtsev, the founder of Realiste.