By Brian Etemad

As the cost of living increases together with rents and the announcement that school fees with go up as much by 30%, residents are now looking to convert their rent costs into bricks and mortar investment.
Investors are also looking for property investment opportunities with the World Expo 2020 in mind with expectations of growth and higher profit leading up to the event as thousands of visitors and expats will venture into Dubai. It has also become more common to purchase off-plan as most developers have secured mortgage lending for their new projects.

Buyers can feel secure in the knowledge that developers and brokers are required to get approval from the Real Estate Regulatory Authority before they can advertise property hence the projects are real and legal and provides added protection to investors.

At Tamleek Real Estate Co. we see real demand and increase in enquiries with some gradual price adjustments as the market is now more mature and there is a clarity that it is heading in the right direction.

Especially as recent news reports reveal that Dubai attracted Dh25.5 billion in foreign direct investment (FDI) inflows last year and succeeded in maintaining its position among the top 10 global cities in attracting foreign investment, ranking seventh worldwide which means more inflow of expats into the city and more demand for real estate projects.

Another attraction for expats and investors is that the Dubai government invests heavily in infrastructure and recently approved a $327 million (Dh1.2 billion) highway expansion project that will ease traffic around the city.

Historically we find that real estate investors and developers go for residential, offices, hotels and retail projects but recently the portfolio is extended to invest in other areas such as warehouses, schools and hospitals which can be equally stable as these buildings are always in demand.

Investors today expect greater yields and with bricks and mortar they can expect the more stable benefits of capital appreciation as developers today offer competitive pricing and attractive payment plans for off-plan projects.

It is always advisable to diversify your income portfolio moving away from a dependency on oil related businesses for market stabilisation and bricks and mortar is a long term stable investment that helps maintain and sustain steady growth in the real estate sector. With lower prices on property sales, now is the time to buy and capitalise from the maximum benefit of real estate investments.