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Investment GuideORYX WORLD

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International luxury real estate INVESTMENT GUIDE

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With an increasing number of people now disillusioned with pensions, more people are investing in property. Here

is an overview of how to become a property investor in Dubai.

FIND PROPERTY FOR INVESTMENT IN DUBAI

Why do people buy in Dubai?People invest in Dubai property to see capital gains as well as strong rental yields.

With the recent incredible growth in property prices in Dubai many people see buying an investment property in the UAE as the way to future financial stability.

Professional investors typically buy following a number of clear principles - they tend to concentrate more on Capital Growth rather than simply straight Rental Yield. It is not uncommon, therefore, that some investors are prepared to buy properties that will give back little or no monthly yield but will assure significant capital gain over the period of investment.

Investors often choose from the following types of property investment:

Off planBuying off-plan means buying property in a development before it has even been built with the aim of picking up the best units, traditionally at a discount. It is not uncommon to buy off-plan around 18-24 months before completion. Some investors, who buy property off-plan at the earliest phases of construction, sometimes intend on securing a short term profit by re-selling or ‘flipping’ their investment prior to the completion of the development. More serious long-term investors, however, will take a medium to long-term investment view, by holding onto their stock purchased off-plan as part of a property portfolio.



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However, typically, investors need to be in a position to proceed quickly with their purchase and possibly even buy off-plan in bulk, if they wish to secure a discount.

Some professional investors prefer to take small portfolios in one development, whereas others prefer to diversify the type of property they buy as well as where they buy.

Buying property off-plan does come with associated risks and so wherever you choose to invest, careful planning and due diligence is essential. It is crucial to stay informed with all the latest market trends by continually analysing and researching the industry.

If you are looking to buy property off-plan and would like the latest up-to-date market information, news and deals contact the Oryx World Investments team.

Click here for Investment opportunities

Apartments Buying an apartment for investment in Dubai can certainly produce capital gains as well as strong rental yields. Certain areas of Dubai are predominantly home to residential apartment towers as opposed to villa developments – Dubai Marina, Burj Downtown and Business Bay for example. These areas are highly sought after for rental purposes by the transitory local western expat community and as such offer a sound investment opportunity given the demand. (For yields and rental returns in the areas across Dubai see the Areas section or Market Reports below). It is critical when investing in apartments to look for an area where there are an abundance of amenities and services within a short distance. Recommended areas to buy apartments include Dubai Marina, The Palm and Burj Downtown.

Clients should be wary of purchasing tenanted properties in a market where rental prices are increasing (as they are currently). This is because landlords are restricted by local law to increase the rent of an existing tenant only in line with the ‘The Rent Index of the Emirate of Dubai’. So despite the fact market rental rates may have risen 30% this year, landlords of existing tenants will be restricted to increasing their rent by as little as 5% - 20% dependent on

what the tenant is currently paying, the size and location of the apartment. It is also not possible to evict a tenant purely to increase the rental charge. There are limited, specific reasons by law, under which a tenant can be evicted and the notice period for eviction is 12 months. With this is mind, for investors in the current climate we would recommend clients to buy a vacant apartment so that maximum rental amounts can be charged and the highest yield attained. Our expert consultants can advise further and source investment properties that will provide the best returns.

Click here for Market Reports

Click here for Investment opportunities

VillasThere are many areas across Dubai, that are predominantly villa communities. These are built by a variety of developers including Emaar who have been responsible for a large number of highly regarded developments in Dubai including Arabian Ranches, the Meadows, Lakes and the Springs. Villa communities lend themselves to family living with their shared community pools, sports facilities and shopping centres.

They are sought by investors for numerous reasons, primarily the simple economics of supply and demand. There are significantly less villas in Dubai than there are apartments and so demand is always high, particularly in established areas. This is also because Dubai is a less transient place than it used to be, with the majority of expat families staying many years and looking to live comfortably while they are here in one of the many high end villa developments. More expats families, living here longer means more demand for a product that



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has a limited supply at present, when compared with apartments.

When purchasing a villa, it is important to consider what makes a villa development great – the amenities and the infrastructure are two key factors. Timing of your purchase is also paramount; it is important to consider whether your goal is capital growth or rental yield as this will affect where and when you buy. If rental yield is more important to you then buying a villa in a more established community is wise, whilst the greatest capital appreciation is most likely with early development buy-in. Our expert consultants can advise further and source investment properties that will provide the best returns.

Click here for Market Reports

Click here for Investment Opportunities

Commercial SpaceWith demand presently outweighing supply in the area of commercial property, the margins for capital gains that can be achieved through the purchase of off-plan property and the high rental returns on completion make buying commercial property a lucrative investment option. There is a shortage of completed office space in Dubai, and with a growing number of government initiatives to drive business growth in the Emirate, demand continues to outstrip supply.

This is reflected in the prices achievable, which in turn makes commercial space, highly sought after by investors. Many would also argue that commercial property investment is much less volatile than residential property investment also.

While offices tend to be focused in locations, such as, Sheikh Zayed Road, Business Bay, and Jumeirah Lake Towers, warehouses and labour camps are generally situated in industrial areas, such as, Al Quoz and Dubai Investment Park. We would always recommend if purchasing commercial office space that you consider the reason for your purchase If it is a combination of investment and premises for your own business it is crucial to consider whether your trade license is DED or Freezone as that will restrict the zone that your company can trade from. At Oryx World, we provide Company Formation services as well as serviced office space in the Oryx World Business Centre, so we are well placed to advise on commercial zoning and the best location for your business for investment or strategic reasons.

Click here for Investment Opportunities

Hotel Investment SchemeThis scheme offers an exciting opportunity for investors. It is new to Dubai but not a new concept worldwide. Oryx is proud to be working



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with two exclusive developments, the Emerald Palace Kempinski Hotel, Palm Jumeirah, Dubai and the Oberoi Maconde Hotel in Mauritius.

A ‘Hotel Investment Scheme’ essentially enables investors to purchase from the property developer, hotel rooms, villas or suites within an exclusive hotel development. Investors will not only benefit from owning a piece of a lavish, five star property, (with no liability for maintenance, operating costs, service charges or utility charges), it is the unique opportunity to enter the thriving hospitality industry and attain substantial annual revenue. The exclusive investment structure of these schemes ensures investors often receive as much as 40% share in room revenue (typically paid monthly or quarterly), as well as the right each year to multiple nights’ occupancy and an elite ‘Hotel Founders Membership’. Such memberships often ensure buyers receive discounts on all services used and / or food and beverages consumed as well as in some cases, free access to all hotels in the chain worldwide. It offers individual buyers all the facilities of an exquisitely-furnished new luxury resort hotel including amenities like F&B, full-service spas, health and fitness centres, resort-style pools, sophisticated business centres and maid service as well as the promise of substantial rental income.

There has never been a better time to enter the Dubai hotel market. Recent statistics show more than a 10% increase to 85.7% in hotel occupancy for the January to June period of 2013. Dubai remains one of the top ten most visited destinations in the world, a ranking that will only increase as the airport capacity expands and as the Emirate plans to host ‘Expo 2020’.

Click here to read more about the investment opportunity at the Emerald Palace Kempinski Hotel, Palm Jumeirah, Dubai

Now is the time to invest in Mauritius. With huge government initiatives driving the Hospitality and Property Development sectors and the recent changes to the law giving foreigners the right to now acquire freehold property, this tax friendly haven is now awash with foreign investment.

Click here to read more about the investment opportunity at the Oberoi Maconde Hotel in Mauritius

ARRANGE FINANCESOnce you have found the investment property you wish to purchase, the next step is to arrange the finance. Releasing equity in a property you already own i.e. a home or an existing investment can help fund new property purchases. A mortgage, from a UAE institution, can also be sought. (See our section on Mortgages). In such an instance, you will be required to put down a deposit.

With our in-depth knowledge of the property market in the United Arab Emirates (U.A.E.) and preferred partnerships with major worldwide financial institutions, Oryx World are in a unique position to help you find the right mortgage.

A growing number of our clients are now enjoying the advantages of arranging the finance for the purchase of their property with the help of an experienced Dubai Mortgage Broker rather than taking the first package offered by their local banks. This allows them to make a decision based on unbiased advice, from the complete range of mortgage products that are on offer.



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EXPAND YOUR PORTFOLIOOnce you have made your first successful purchase with Oryx World, when the right opportunity presents itself, it may be time to grow your portfolio. To do so, you may wish to release equity in your existing property. Reinvesting this equity in additional properties is the next step. We can help you decide whether it would be best to invest in one or more properties and when the right time to buy or sell will be. Growing a property portfolio can be a slow process with long-term goals. Contact our expert consultants to help put those goals into reality. Click here to search for another property to invest in

EVALUATE YOUR PORTFOLIOWorking with the Oryx World Investment team, means not only do we help you make acquisitions that are right for your portfolio but we will appraise your portfolio and advise you regularly on the capital growth and rental yields. We ensure you are kept up to date with how your investment is performing. Investment is about much more than simply acquiring property; it is about ensuring rental rates charged are in line with the ever-changing market (to maximize yield), that risks are spread (by investing in different developments and property types) and that a proper exit is planned to maximize gains. It is crucial that properties are sold at the right time, often to spend that equity in another area or on another type / types of property that are particularly strong at that time. It is the job of your Oryx World advisor to keep you abreast of the changes in the market and continually evaluate your portfolio to maximize your gains.

Click here to request a Property Appraisal

MANAGE PROPERTYOur comprehensive Property Management service is designed to give you peace of mind and relieve you of the commitment of being a full-time landlord. Oryx World offer a range of services at competitive rates which is why we look after properties on behalf of both local and international landlords living in Dubai and around the world.

More and more tenants request managed properties as it allows a more professional

service, removing the emotion from both sides.Our fully trained team are highly experienced in prompt rent collection and credit control as well maintaining proactive relationships with tenants. Our Property Management package includes services such as collecting rent, handling administration as well as assistance with more complex issues and the provision of a 24-hour emergency helpline.

Click here to read more on our Property Management Services

Click here to contact our Property Management Team

FIND TENANTSAs a prominent real estate company in Dubai established for over ten years, at Oryx World, we have a constant flow of private and corporate tenants looking for Dubai properties for rent as the city’s economy continues to soar. Through our business centre ‘The Oryx World Business Centre’ in Business Bay, we attract a large volume of commercial enquiries. Our Company Formation services also give us access to a vast number of new companies looking for premises. Finding tenants is made easy by Oryx World.

Oryx World can help you whatever stage of the investment process you are at. Contact us now to find out what your existing property is worth or to discover what exclusive investment opportunities we currently have.

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International luxury real estate

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