A shopkeeper in Chandni Chowk, Dinesh is a middle-class person in New Delhi. As a child, he dreamed of being a successful entrepreneur. Unfortunately, he was unable to pursue his dream due to some personal issues
As a result, he saved enough money to send his son, Rahul to the USA to get the best education in Business Development and Management.
Rahul has successfully completed his master’s in Business Development And Management from the USA and came back to his father to learn more.
The idea of starting a business and taking some guidance from his father excited him. Furthermore, he wanted to discuss with his father some fresh and creative ideas.
Comparison Between The Benefits Regarding The Real Estate Of Dubai With Others
On one occasion, Dinesh called Rahul into his room and said, “Son, I have something significant to share with you.”. I have been thinking about investing in stocks and real estate abroad for quite some time.
Since investing in the real estate market will yield ROI, rather than the stock market, I lean more toward investing in the real estate market since it involves less risk.
Rahul: I would suggest you invest in the real estate market of Dubai rather than anywhere else.
I have done extensive research on the property market of Dubai as it was a part of my course in masters.
I even have some of my close as well as trusted friends who have invested in some exceptionally magnificent properties in Dubai.
The real estate market of Dubai has been at its booming phase and yielded great returns on investment for them. Currently, the ROI of Dubai’s real estate market is 7.5%.
Dinesh was surprised by his son’s statement because according to his research, he had a completely different opinion on the real estate market of Dubai.
Dinesh: Despite understanding your point of view, I don’t think you should invest in Dubai’s real estate market right now. There are several reasons why I say this.
Rahul, astonished by this, now became curious to hear the arguments his father has accumulated in his mind and how valid those points are.
Rahul: “Father, May I ask why do you think like this?”
Dinesh: Son, Dubai’s real estate market is extremely unpredictable as you never know when it will change. The volatility of Dubai’s real estate market deliberately depends on several external factors such as oil prices, tourism demand, political stability, and global events. Prices and transactions plummeted during the pandemic in 2020-2021, for example. Even though it has recovered a lot since then, it still gives no guarantee that future crises won’t adversely affect it
Rahul: You are absolutely right, but every country’s real estate market has its own risks and challenges that can affect this market along with all the factors that you just mentioned. You can not avoid them completely and forever. You should be fully prepared and be highly flexible to adapt to such unpredictable and volatile situations.
Dinesh: I agree with you, but there are additional factors as well that make Dubai’s real estate market less appealing than other options. For example, the market of Dubai is extremely oversupplied with properties, especially when it comes to the niche of apartments and villas. This proves that there is a lot of competition in this segment and less demand for such properties. You might have to wait for a long time to find a buyer or a tenant for your property or lower your price expectations
Rahul: But then it means that you can get a pretty amazing deal on your property purchase. You can negotiate for a lower price and get more value for your money. In Dubai, you can find exceptionally mesmerizing properties along with jaw-dropping views and that too at affordable prices as compared to other countries.
Dinesh: Maybe this is true, but you must also consider the costs of owning and maintaining a property in Dubai because you have to pay fees for registration, transfer, service charges, maintenance, utilities, taxes, and much more. These fees can lead to a significant amount over time that you have to spend and it eventually reduces your net income from your property.”
Rahul: But father, all these are pretty normal expenses that you have to pay either way, whether you buy a property in Dubai or anywhere else in the entire world. You can’t avoid them, son.”
Dinesh: Yes, you are right but there are several other amazing options that offer much better returns on investment that too with much lower costs and risks. You can invest in Real Estate Investment Trusts (REITs) or Exchange Traded Funds (ETFs) that track the performance of real estate markets around the world. Compared to individual properties, these allow you to take advantage of the growth of multiple markets without dealing with the hassles of ownership and management.
Rahul: But father, these are not real assets. They are mere paper assets that totally depend upon the performance of other entities. You don’t have any control or ownership over them.”
Dear father, I will tell you some more benefits of buying a property in Dubai:
- Dubai is considered the 3rd safest city in the entire world
- Dubai has excellent healthcare staff and services
- Residing in Dubai is like living in a promised land where you will enjoy mind-blowing views of your neighborhood, entire city and have full access to luxurious amenities
- Dubai has one of the most advanced metro systems in the entire world as Dubai metro comes with fully automated and driverless transit lines
- Dubai offers off-plan as well as freehold properties
Dinesh got really impressed by his son’s awareness and true facts. He realized that Rahul had done his homework really well along with stating all the facts and had all the valid points of view.
With a lot of amazement, added further:
Dinesh: Dear Son, I am so proud of you for the fact that you have such amazing knowledge and have given me some really exquisite facts to think about. I appreciate your input and respect your opinion. I may have made a hasty decision without doing enough research. I appreciate you letting me know that I am still a little far from making a well-informed choice. Thanks a ton for sharing your wonderful insights with me
Rahul( feeling proud and happy): You’re welcome Father. Thanks for listening to my perspective with such patience. Hope I didn’t offend or hurt your feelings. I just want the best for you.
Dinesh: I did not feel offended or hurt at all by what you said. As any good son would do, you stood your ground while stating all the facts with utmost honesty and respect. I love you very much and I am extremely proud of you.
The story revolves around Dinesh, who owns a shop in Chandni Chowk, New Delhi. His son studied Business Development And Management in the USA so that he could be a successful businessman.
Rahul has returned from the USA after completing his master’s in Business Development And Management in order to learn some additional significant aspects of the business before he begins a new journey.
When Dinesh announced that he is confused as to where to invest i.e. whether in the real estate market or the share market. To which Rahul told him not to invest in the share market and suggested his father go ahead with investing in the real estate market of Dubai.
As a result, both Dinesh and Rahul started stating their respective point of view which leads to the comparison of Dubai’s real estate market with that of other nations.
After their discussion, Dinesh changed his decision after he got convinced by the facts stated by his son, Rahul regarding the real estate market of Dubai. Dinesh now decided to invest his hard-earned money into Dubai’s real estate market.
As a result, this story is a great lesson for all potential investors who are going to make hasty decisions. It is important to conduct a detailed analysis of Dubai’s real estate market visit Dubai Housing and the marvelous benefits you will get out of it.