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The top five risks of investing in Dubai and how to avoid them
May 19, 2023
The top five risks of investing in Dubai and how to avoid them Dubai
By   Press Release
  • City News
  • Dubai investment
  • property market
  • property risk
Abstract: As the Dubai real estate market continues to grow, it has become a destination for beginners and experienced investors from around the world.

Dubai, UAE - Realiste, the UAE's leading artificial intelligence prop technology company, has used data and insights from its artificial intelligence platform, The Index, to identify the top five risks of investing in the Dubai real estate market. This analysis provides key insights for investors looking to navigate the dynamic Dubai real estate market.

 

As the Dubai real estate market continues to evolve, it has become a destination for both beginners and experienced investors from around the world. However, it is important to recognise that it is possible to be caught off guard by all the existing risks and pitfalls in an emerging market. Below, Realiste highlights five typical risks and how to deal with them.

 

Resale issues: Realiste's index shows that reselling property in Dubai can be challenging due to the dominance of real estate agents in the market. realiste believes that the solution is to calculate your profit, taking into account a minimum of 4% of the cost of sale.

 The top five risks of investing in Dubai and how to avoid them

Market volatility: Dubai's property market is known for its volatility. However, Realiste's index suggests that the market is likely to continue to grow 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 the cost of facilities and air conditioning, and Realiste advises investors to take these costs into account when calculating potential returns.

 

Speculative projects and locations: Many investors are attracted to Dubai's high value projects and locations, often paying a high price for them. realiste's index provides comprehensive analysis and advice on these projects to help investors make an informed decision.

 

Off-plan vs secondary market: Realiste's index shows that off-plan projects tend to be more expensive than similar projects on the secondary market. realiste believes the solution is to diversify between the secondary and primary markets.

 

As the Dubai 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," said Alex Galtsev, founder of Realiste.

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The top five risks of investing in Dubai and how to avoid them
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