With house prices in Dubai and Abu Dhabi on the rise, the emphasis on suburbs currently underestimated but possessing the potential to transform into hotspots in the not too distant future is more than ever before. Most people’s budgets aren’t high enough to enable them to live in their desired location, so they’re forced to choose between buying a run-down property in a pricey locale and taking a chance on an up-and-coming locality.
Buying in an upcoming community means that you can reap the benefits of nicer areas, whose more expensive property values generally cause a positive outward ripple effect on suburbs in the fringe. So, looking out for places sandwiched between sought-after areas is a good place to start.
Asking the right questions is absolutely critical for shrewd buyers who are hoping that the area they are looking at is going to offer future capital gain. Here are 10 easy questions that you should ask as a starting point to identify the next boom area.
1) What is the availability of new property in the area?
2) Is it adjacent to a prime suburb?
3) Is the streetscape similar in nature to the neighbouring hip suburb?
4) What are the major infrastructure projects presently running or planned for the next few years?
5) Has the area benefited or is the suburb likely to benefit from new infrastructure such as train lines and hospitals?
6) What major retailers are moving to the area?
7) Are there good transport links? Is it proximal to a large shopping centre?
8) What commercial office space is being expanded?
9) What are the schools in the area?
10) What are the rentals yields like?
If you’d like a head start on your search for a bargain suburb, walk or drive around areas that are going through the improvement process. Look out for neighbourhood must-haves such as schools, decent shops, bars and restaurants, medical centres and transport links. Find an area where prices will go up, rather than move somewhere where increases have already been felt. This way, even if you are a buyer on a modest budget, you can be a winner!