Many people expect the market for land and lots to be the same as the already existing property. They are not. Selling a property in a competitive market like the one in Dubai can be very challenging, but basically selling “dirt”, can be challenging … in any market. Any landowner or real estate professional has to understand the differences between the land market and the existing homes market.

• Land and lots buyers are different from home buyers: while home buyers are looking for a ready-to-move-in type of property, land buyers – whether individuals or developers – have different needs. The right location and the opportunity to customize the plot to fit their needs is more important.
• Land requires different sales technique: a ready-built home offers its visitors the visual part. People can come and see themselves living in it. We can’t say the same thing about a vacant plot.
• Market for land is less active: generally speaking, the market for homes is more vibrant than the one for lands. Usually, there are more consumers looking for homes, than people or developers looking for land.
• Understand who your buyer will be and what they need to know: your buyer profile depends on the type of land you are selling. Has it been developed already, where is the location, what are the market conditions?
• Choose your price carefully: pricing can determine your success in attracting potential buyers, and pricing your lot or land too high is one of the biggest mistakes that sellers make…and regret.

While the land market may be more challenging than the property market, the rewards are definitely worth it. Our team at Al Ruwad has put together 10 reasons why investing in land might be the right decision, in a time where the property market may become oversaturated:

• Land is a “Hands-Off” Investment. Vacant land is one of the best investments on earth because of its hands-off nature and versatility.
• The stability that comes with owning the right piece of land can far outweigh the myriad of problems that comes with any other type of real estate.
• You don't need to be an expert or know anything about how to construct a property yourself.
• Land investors have virtually no competition to deal with.
• Land is a long-term, tangible asset that doesn't wear out, doesn't depreciate.
• Land is an extremely valuable resource with limited quantities available.
• There is little maintenance compared to other Real Estate Investments.
• Land is already a valuable asset and prices reflect that fact. However, development continues in the region at a rapid pace, so purchasing land and holding it for the medium to long-term remains a strong investment opportunity.
• Land prices can fluctuate, but they fluctuate far less often than the stock market, commodities and currency.
• An undeveloped piece of land can be a stable asset over the years, which might be worth many times its purchase price down the line.