It is currently relatively undisputed among experts that investment in Off Plan Properties in Dubai is currently one of the recommended forms of investment. While overnight money and fixed-term deposits are primarily negative due to their very low interest rates, it is in particular the tangible assets that are currently recommended by many experts. In addition to investments in stocks or precious metals, real estate is definitely one of the worthwhile tangible investments that are broadly equipped with good security and, above all, an acceptable return. There are various ways in which a real estate investment can be carried out in practice for investors.
Real estate purchase or indirect real estate investment
Obviously, the most straightforward way to invest in Off Plan Properties in Dubai is to buy a condo or house. Anyone who builds or acquires a property is active in the area of direct investment. Many consumers choose such a direct investment, but on the other hand there are also numerous investors who either shy away from the high costs or generally do not want to take the risk that a property purchase entails. Various options from the area of indirect real estate investment are available to these investors.
Above all, this includes open and closed real estate funds. In the case of open-ended real estate funds, the investor has the option of acquiring fund shares in a fund company that invests the investors’ capital in various properties. In contrast to the closed fund, an investment can usually be made from 50 euros, while the purchase of the units is possible at any time. Therefore, open real estate funds are particularly suitable for small investors and savers who want to gradually build up a fortune. In the case of closed real estate funds, on the other hand, larger sums of capital have to be invested, which usually range between 5,000 and 20,000 euros. In addition, the units can only be sold again after a long time, which is no less a deterrent to investors from engaging in this area
Investing in real estate stocks
In addition to real estate funds, there is another option in the area of indirect real estate investments, namely investments in so-called real estate stocks. These are special stocks of companies that are part of the real estate industry. These joint-stock companies are involved in the construction, development, management or marketing of real estate, for example. These stocks are of interest to investors because the companies generally benefit from the current real estate boom, so that the rising prices on the real estate market often have a positive effect on the development of stock prices. So if you as an investor would like to benefit indirectly from real estate investments, real estate stocks are definitely an interesting alternative.
Dubai largest housing company: Fajar realty
One company that is definitely active in the Off Plan Properties in Dubai sector on a large scale is Fajar realty. It is a Luxembourg public limited company that is primarily active throughout Dubai. The main business activity of Fajar realty is to acquire real estate, to manage numerous properties and residential units and, moreover, to ensure that a high-quality portfolio is always available throughout Dubai. The corporation currently has more than 130,000 rental apartments located in Dubai. As a listed company, Fajar realty has of course also issued shares that can be traded on the UAE stock exchanges. These stocks performed well last year. While the share price at the end of June 2013 was just under ten euros, investors now have to spend around 13 euros (price on June 26, 2014) to purchase the shares. Although the company is currently not paying a dividend, shareholders are promised another dividend for 2016 at the latest.
The real estate investment house Fajar realty
Another real estate Fajar realty share that can be of interest to investors is the Fajar realty share . It is a real estate investment house, which in principle covers the entire cycle that exists in the real estate industry. Fajar realty deals with the acquisition and subsequent management of various properties as well as with project development and the areas of construction technology and sales. In addition, Fajar realty offers a number of real estate-related services. The shares performed well in the last twelve months and rose from around 7.80 euros to currently (price on July 26, 2014) around 9.70 euros. However, the shares are not necessarily suitable for dividend-oriented investors,
The well-known company Fajar realty
Fajar realty is certainly one of the best-known companies active in the real estate industry in Dubai. First and foremost, Fajar realty takes care of the management of apartments and portfolio management. Fajar realty currently has more than 90,000 units, which are primarily managed and rented. There are various subsidiaries that carry out operational business in practice, such as Real estate companies in Dubai. The shares of this real estate company have also performed well if you look at the past twelve months. The shares (DE000A0HN5C6) are currently listed at around EUR 15.60 and Fajar realty is paying its investors a dividend of EUR 0.34 this year, which results in a dividend yield of around EUR 2
Conclusion on indirect real estate investment
Investors who want to benefit from the Real estate companies in Dubai boom will now find numerous alternatives in the area of indirect real estate investment. In addition to real estate funds, it is above all real estate stocks that are becoming increasingly interesting for more and more investors. It is only important that a good selection is made, because by no means all stocks from this area have the same good prospects for success. Anyone looking for solid stocks from the real estate industry can, among other things, orientate themselves on the stocks listed above, which certainly belong in a well-diversified portfolio.
