Interview with giovanni ledda, ceo of ag luxury properties llc. everything you need to know about the real estate market in dubai

Dubai has become a highly sought-after destination in recent years for those seeking a vacation dedicated to unabashed luxury. However, it also represents a highly flourishing market rich in opportunities for the real estate sector. Is it worth investing in Dubai's real estate market? We asked Giovanni Ledda, who kindly answered our questions. He is the Local Ambassador of Luxforsale in Dubai and the seller of the Billionaire Sky Penthouse, an ultra-luxurious residence that embodies luxury and wealth in every detail, with views of the Burj Khalifa and the skyline.

Do you buy apartments in Dubai already finished or do you build them personally?
In Dubai, the choice between buying an already finished apartment or building it personally depends on various individual needs and preferences. However, as in all major cities, the distinction between finished apartments and off-plan ones is much more relevant than the choice between building or buying a residence. Both solutions have advantages and disadvantages.

Advantages of buying already finished apartments in Dubai:
- Immediate availability: you can move into the apartment right away without waiting for construction times.
- Flexibility of choice: a wide variety of ready-made apartments available in different areas, sizes, and price ranges.
- Cost certainty: the final price is defined and not subject to unforeseen circumstances during construction.
- Inspection possibility: you can inspect the apartment before purchase to verify its conditions and finishes.

Disadvantages of buying already finished apartments in Dubai:
- Less customization: you may not have the opportunity to customize the apartment according to your tastes and needs.
- Potentially higher costs: finished apartments may have a higher price per square meter compared to those to be built.
- Limited layout choice: the choice of layout may be limited to the apartments available on the market.

Advantages of off-plan apartments in Dubai:
- Potential cost savings: in some cases, building a customized apartment may be more economical than buying a finished one, especially if efficient materials and construction solutions are chosen.
- Maximum customization: you can design the apartment according to your specific tastes and needs, choosing materials, finishes, and layout.
- Potential capital appreciation: property prices in Dubai tend to increase over time, so an off-plan apartment could prove to be a profitable investment.

Additionally, it is worth considering the following additional advantages in off-plan real estate investments in Dubai:
- Lower prices and flexible payment plans: off-plan properties are often offered at significantly lower prices than completed projects. Developers provide flexible payment plans suitable for investors' budgets. They mainly compete on prices and profitable payment schemes such as "50% down payment and 50% upon completion" or "1% per month" payment plans.
- Capital gains: The United Arab Emirates is one of the fastest-growing economies in the world, so real estate investments here are extremely promising in terms of return on investment (ROI). The value of a property is likely to increase once completed, regardless of the "locked-in" purchase price before construction.
- High demand: Off-plan properties in Dubai attract a lot of interest due to their promising investment potential. In 2023, real estate transactions for off-plan apartments in Dubai reached AED 131.5 billion, representing a substantial share of the total sales transactions of apartments in Dubai, totaling AED 190.1 billion.

Disadvantages of off-plan apartments in Dubai:
- Prolonged waiting times: building an apartment can take several months or even years, depending on the complexity of the project.
- Lack of immediate inspection: you cannot inspect the apartment until the end of construction, so it is important to carefully check the reputation of the construction company and the quality of the materials used.

However, like any investment, it is important to carefully consider potential risks and consult a trusted real estate advisor before proceeding. Ultimately, the choice between a finished apartment and an off-plan one in Dubai depends on various variables, including your budget, customization needs, risk tolerance, and available time. If you are looking for a quick and flexible solution, buying a finished apartment may be the best option. If, instead, you desire a completely customized apartment and are willing to wait and take some risks, construction might be the more suitable choice.

How does the real estate market in Dubai work: do people buy apartments to live in or to rent out?

The real estate market in Dubai is characterized by a mix of buyers who purchase apartments for both living and renting purposes.

Market-driving factors:
- High demand: Dubai is an attractive global destination for expatriates, professionals, and investors, fueling strong demand for housing.
- Economic development: Dubai's robust economy, with low unemployment rates and steady growth, encourages purchases of properties for personal use.
- Political stability: Dubai's stable political and social environment favors long-term real estate investments.
- Modern infrastructure: Dubai boasts world-class infrastructure, efficient transportation, and a wide range of services, making it a pleasant place to live and work.
- Rental yields: Properties in Dubai offer attractive rental yields, appealing to investors looking to generate passive income.

Buyer profile:
- Residents: many residents in Dubai choose to buy an apartment to live in, enjoying a high standard of living and a comfortable lifestyle.
- Investors: local and international investors are attracted by the potential long-term rental yields and capital appreciation of Dubai's real estate market.
- Vacation buyers: some individuals purchase apartments in Dubai as second homes for vacations or potential short-term rentals.

Buying for personal use or for rent:
The decision to buy an apartment to live in or to rent out depends on several factors, including:
- Financial goals: if the goal is to generate passive income, renting out might be the preferable option.
- Job stability: if your job is unstable or you anticipate frequent transfers, renting out might offer more flexibility.
- Lifestyle: if you want to put down roots in Dubai and fully enjoy life in the city, buying might be the best choice.
- Associated costs: buying involves additional costs such as taxes, condominium fees, and maintenance, which need to be considered.

In general, Dubai's real estate market offers interesting opportunities for both owner-occupiers and investors. The best choice depends on the individual needs and goals of each buyer. It is always advisable to conduct thorough research, evaluate different options, and in this case, we also recommend consulting a real estate professional from Luxforsale for personalized advice.

Can you give us a general overview of the apartments and amenities available in Dubai?

Apartments in Dubai are available in various sizes and styles, from studios to multi-bedroom penthouses. The average size of an apartment in Dubai is around 70 square meters. Apartments usually come with a kitchen, one or more bathrooms, and a balcony or terrace.

Some common amenities in Dubai apartments include:
- Air conditioning
- Swimming pool
- Gym
- Sauna
- Steam room
- 24-hour security
- Concierge service
- Parking
- Gardens
- Children's play areas.

Dubai apartments are located in a variety of neighborhoods, including:
- Downtown Dubai: the heart of Dubai, home to numerous skyscrapers, including the Burj Khalifa, Dubai Mall, and Dubai Fountain.
- Dubai Marina: a waterfront neighborhood with a marina, luxury apartments, and hotels.
- Palm Jumeirah: an artificial palm-shaped island housing villas, hotels, and luxury restaurants.
- The World: an artificial archipelago shaped like a world map, consisting of private islands.
- Dubai Silicon Oasis: The price of apartments in Dubai varies depending on the size, location, and amenities. In general, you can expect to pay from AED 500,000 to AED 10,000,000 or more for an apartment in Dubai.
If you're considering buying an apartment in Dubai, there are some things to keep in mind:
• The real estate market in Dubai is very competitive, so it's important to do thorough research and find a reliable real estate agent;
• The process of buying an apartment in Dubai can be complex, so it's important to have a lawyer to assist you with the transaction;
• There are a number of taxes and fees associated with buying an apartment in Dubai, of which you should be aware.
• Dubai's real estate market is cyclical, so it's important to only invest money you can afford to lose.
Despite these risks, buying an apartment in Dubai can be a lucrative investment. The city is a popular tourist and commercial destination, and the demand for housing is high. If you're willing to take the risk, buying an apartment in Dubai could be a good way to build your net worth.
What is the overall quality of life like in Dubai (services, schools, transportation, etc.)?
Dubai boasts an excellent quality of life, offering a wide range of services, modern infrastructure, and a safe, multicultural environment. Here's an overview of some key aspects.
Services:
• Healthcare: Dubai has a high-quality healthcare system, with state-of-the-art hospitals and clinics offering international-level medical services;
• Education: the city boasts a diverse education system, with public and private schools following international and local curricula;
• Shopping: Dubai is a shopper's paradise, with luxury malls, traditional markets, and shops of all kinds;
• Restaurants: Dubai's culinary scene is vibrant and multicultural, with restaurants offering cuisines from around the world;
• Recreation: Dubai offers a wide range of recreational activities, including water sports, desert safaris, theme parks, and cultural attractions.
Infrastructure:
• Transportation: Dubai has an efficient and modern public transportation system, including metro, buses, trams, and taxis. The city is also well connected internationally with two main airports;
• Roads: Dubai's roads are wide and well-maintained, with clear signage and strictly enforced speed limits;
• Technology: Dubai is a technologically advanced city, with widespread high-speed internet coverage and advanced digital services;
• Safety: Dubai is a very safe city, with low crime rates and a strong police presence.
Environment:
• Climate: Dubai has a hot and dry climate, with long summers and mild winters;
• Cleanliness: the city is clean and well-maintained, with regular cleaning services and waste collection;
• Multiculturalism: Dubai is a cosmopolitan city with a population from around the world. The official language is Arabic, but English is widely spoken.
Of course, the cost of living in Dubai is high compared to many other countries. However, high salaries and tax exemptions can offset this for many residents.
Overall, the quality of life in Dubai is very high, offering a safe, comfortable environment and plenty of opportunities for those living and working in the city.
Here are some things to consider if you're thinking of moving to Dubai:
• The hot and dry climate may not be suitable for everyone;
• The cost of living is high, so it's important to have an adequate budget;
• Dubai is a very safe city, but it's still advisable to take normal safety precautions.
If you're looking for a vibrant, cosmopolitan lifestyle with plenty of opportunities, Dubai could be the ideal city for you.
Can a person with a medium to high income in Italy afford to live in Dubai?
Whether a person with a medium to high income in Italy can afford to live in Dubai depends on various factors, including:
• Net income: the monthly net income of a person in Italy varies depending on their job, region, and other factors. Generally, a medium to high income in Italy ranges from €3,000 to €6,000 per month;
• Cost of living in Dubai: the cost of living in Dubai is significantly higher than in Italy. Rent, food, transportation, and other monthly expenses can be considerably higher;
• Lifestyle: the desired lifestyle in Dubai significantly influences expenses. For example, living in a luxury neighborhood, dining frequently at expensive restaurants, and traveling often can significantly increase expenses;
• Taxes: there is no income tax for individuals in Dubai. However, there are other taxes and fees to consider, such as VAT (5%) and consumption taxes;
• Savings: if the person already has a good amount of wealth or substantial savings, they may be able to afford a higher standard of living in Dubai compared to someone who does not.
It's also important to make additional considerations:
• Healthcare expenses: health insurance in Dubai is mandatory and can be expensive, especially for families;
• Schools: if you have children, the cost of private education in Dubai can be high;
• Accommodation: rent in Dubai varies greatly depending on the location, size, and amenities of the apartment.
In general, with a monthly net income of at least €4,000 and a reasonable lifestyle, a person with a medium to high income in Italy could live comfortably in Dubai. However, it's important to make a careful budget and consider all potential expenses before moving.
Here are some tips for living in Dubai with a medium to high income:
• Choose a more affordable neighborhood: Dubai offers several areas with more affordable rental costs;
• Cook at home: dining out frequently can be expensive. Cooking at home is a way to save money;
• Take advantage of free activities: Dubai offers many free or low-cost activities, such as beach visits, park walks, and cultural events;
• Travel during the off-peak season: flights and hotels are generally cheaper during the off-peak season.
Living in Dubai with a medium to high income can be a fantastic experience, but it's important to be realistic about your expectations and financial capabilities.
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