Real Estate Vs. Gold Investment – Which is the Best Investment Option in UAE?

Dubai is one of the most important cities in the Middle East that has materialised into a major business hub. When it comes to investment in UAE, no option is ideal or the right choice, as it completely depends on the purpose and goals of the investor.

If you plan and execute your investment options in UAE properly, it can reap huge returns for you. Today, most of the expats in Dubai wish to invest their money in either gold or real estate. But as we know, every investment option comes with some degree of risk and volatility.

Let us dive deeper into real estate vs. gold investment and find out which is a better investment option in the UAE.

Real Estate Investment in UAE– What Do You Need To Know?

Being one of the fastest growing metropolises in the world, Dubai is the most popular destination for real estate investments. The beautiful city is known for its towering skyscrapers, palm-tree shaped island with scenic waterfront and for the best malls in the world.

Many people show interest in real estate investment UAE, either for boosting their current investment portfolio or to secure a home in one of the best property markets in the world. The best part is that the range of futuristic, affordable and uniquely designed residential communities make the city a haven for real estate investors. With innovative projects underway and a promising real estate market with attractive prices, there is something for every investor in the Emirates.

Every investment has its own pros and cons. But it wouldn’t be wrong to say that real estate investment is a harbinger of hope, even in difficult times. Let’s get you acquainted with the pros and cons of real estate investment UAE.

Pros & Cons of Real Estate Investment in UAE

Pros:

●      Sense of Security: As compared to other investments, the prices do not fluctuate every now and then. It is a tangible investment with more economic value.

●      Generates Cash Flow: Renting out property assures monthly cash flow.

●      Home Loan Tax Benefit: Home loans allow many tax benefits, which can significantly help you reduce your tax outgo.

●      Property Appreciation: When the market rates rise, property rates also appreciate, which can help you earn tremendous profits when you want to sell it.  

Cons:

●      Professional Help Required: Real estate investment in UAE and getting the property registered on your name is an extensive procedure. So, hiring an expert Legal Advisor can always prove fruitful. 

●      Time Commitment: When investing in real estate, you should invest yourself keenly and carefully in property hunting, before making a buying decision. Background checks and price evaluation requires time commitment to work out a perfect deal for the investment.

●      Maintenance Cost: Even if you rent out the property, there is always a maintenance cost involved and the owner is liable to pay it.

●      Less Liquidity: Real estate is a long-term investment and selling the property is even more time consuming and also involves tedious bank transactions. 

Gold Investments in UAE – What Do You Need To Know?

Gold investment UAE has always been the most viable option for people. If you are not aware, most of the currencies in the world are valued against gold and Dubai is the trade capital of UAE, also known as the Centre of Gold. This is an effortless investment, as you only need to purchase gold from a reliable source, but before going for the investment in the precious metal, you need to take some crucial aspects into consideration.

Purchasing stocks from a gold mining company, collectable gold, gold bars and bullion coins are some of the ways you can invest in gold. But there are many things you should keep in mind when making gold investments UAE.

1. Before investing in gold bars and bullion coins, you should always ask about the melt value of the gold.
2. It is always advisable to get an independent valuation of the particular gold commodity or product, as sometimes sellers may inflate the numbers to make more money.
3. You also need insurance to safeguard your extremely valuable assets or get a specialized bank locker.
4. It is equally important to know the purity of the kind of gold you are investing in. 24K is 100% pure gold and is more valuable. 22K (87%) and 18K (75%) are other values of purity and lesser purity will always give lesser value.

Pros & Cons of Gold Investment in UAE

Being a trendy investment option in UAE of the millennium, this precious metal is slightly volatile and sees immense price swings, both upwards and downwards. So, if you are a new investor who has not considered investing in gold before, here are a few pros and cons that will help you make a wiser decision.

Pros:

●      Buying gold can be very satisfying.

●      In terms of investment, there is a significant potential upside for gold.

●      As an investor, you can always test the gold content of the gold bars or bullion coins, while buying.

●      It is very easy to sell or buy this valuable metal.

Cons:

●      Storing and insuring gold bars or bullion coins can be an expensive task.

●      Dealers charge premium fees for gold coins.

●      It is quite challenging to verify old or rare gold coins.

●      For gold, you never know how much price appreciation possibility it might have.

Whether Real Estate or Gold, you can always choose the best investment option in UAE, depending on your purpose of investment, financial situation and the duration you are willing to invest for. Both the investment options have their respective pros & cons, but you can choose the ideal one that fulfils your requirements, after doing a thorough research & analysis.