Dubai is becoming an attractive destination for Slovak investors for real estate investments. Flexible payment plans, low initial deposits and available discounts create favorable conditions for the purchase of apartments and commercial projects. Last year showed that the rental return in Dubai significantly exceeds the standards of European locations and investors are also interested in capital appreciation.
Last year's results
Investors responded last year mainly to developers' flexibility and attractive returns on investment. "Property investment opportunities are increasing thanks to more flexible payment plans for off plan properties, lower initial deposits, and possibly discounts that we can secure for clients from some developers," explains IQPRO Real Estate CEO Mirka Nieuwenhuis.
Clients with secondary properties, or off plan properties they bought two to three years ago, are seeing higher rental returns in Dubai than similar apartments in Europe. According to the expert, this trend underlines the growing interest in Dubai as a center for stable and profitable investments.
Experienced real estate companies can help investors not only with the purchase, but also with portfolio management. According to M. Nieuwenhuis, this increases client confidence. The director of IQPRO Real Estate emphasizes that thanks to professional advice, their clients have a better overview of expected rents, potential discounts and an optimized payment schedule. This service provides a competitive advantage over direct purchases from developers, where a comprehensive overview of the market and available projects is often missing.
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The most attractive locations
Last year, Dubai Islands, Motor City and Sport City attracted the most interest from investors. "Dubai Islands is an ideal place for capital appreciation. Once the entire area is handed over and completed, there will be apartments with higher capital and the appreciation will be attractive. Motor City and Sport City are good options for buying investment apartments with a return on investment from long-term rental," says M. Nieuwenhuis.
New areas such as Al Wasl Gate and Dubai South are the future locations for investment apartments for rental returns as well as capital growth. According to the expert, investors are looking for a combination of strategic location, affordable price, flexible payment plan, return on investment and capital appreciation.
Location choice has an impact on investment appreciation and long-term rental income. Investors often return after positive experiences with new investment plans. “Clients come back to us and buy new properties or sell properties they have handed over, where they have capital growth.”
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Satisfaction and expectations
Interest in Dubai is also growing due to the geopolitical situation in Europe, which is bringing in new investors. "They are coming not only to buy real estate, but also to open their business in the United Arab Emirates (UAE)," adds M. Nieuwenhuis, adding that this trend predicts further growth in Slovak investments in the region. The expert advises interested parties who are still hesitant to start familiarizing themselves with the UAE market.
"We can present serious buyers with studies on how the freehold market has developed from 2001 to the present and projections for the future, real figures on the return on investment from rentals. We can present facts to investors unfamiliar with the market," she explains. She recommends commercial properties, which have a large premium appreciation and a higher return on investment than residential properties. The yield reaches 11% with an expected growth to 12% to 15%. The remaining residential projects are attractive beach apartments and townhouses with limited plots or a private beach.
For experienced investors, Dubai is also a springboard for doing business in the region. "With our partners, we will help Slovak investors set up business plans or expand into the dynamic Middle East market."
