Now, investors are becoming smarter when it comes to investing and growing their money. The International Real Estate Fund is a popular investment vehicle for investors seeking to diversify their portfolios.
Traditionally, when an individual investor wants to invest their money they used to hire a qualified financial advisor who advises them about growing opportunities to invest money. Now, the trend has been rapidly changing because nowadays investors are more focused on understanding growing opportunities and investing themselves.
Diversifying asset portfolios has always been on the bucket list of investors. Fortunately, there are various ever-growing opportunities with a huge potential of generating promising results. In this blog, I’ll elaborate on why international real estate funds are a great option with a focus on Middle Eastern countries.
Let’s uncover some compelling chances to invest in International Real Estate
In my experience, international real estate investments can be a wonderful way to generate wealth for several compelling reasons.
A. 18%+ return on investment:
Yes, 18%+ or even more return is possible from international real estate investment. However, it is necessary that we should pay optimum attention to neighborhoods as well before opting for any commercial or residential property.
B. Growing interest of Millennials towards real estate investments:
As per Google trends, the enthusiasm of people towards this investment opportunity has been showcasing consistent stability. As people are becoming aware of the potential of this opportunity. In this regard, it is crucial that you also try to take advantage of this opportunity and reap the maximum return on your investment.
According to the study conducted by Khaleej Times in 2024, it is found that about 19% of millennials plan to invest in commercial real estate and about 22% plan to purchase residential property.
C. Diversification of Risk:
Whenever the stock market crashes, people who book a huge chunk of money (loss) always tend to say one common statement “I wish I had diversified my investment”. So, another potential reason as per my experience can be to invest in real estate investment options because it supports you in diversifying your funds.
Furthermore, making investments in diverse countries also helps in spreading the risk. For example, in the year 2022, the real estate market of the U.S. saw fluctuations on the other hand, the property market of Dubai grew by 20%.
D. Access to Emerging Markets:
Emerging markets often grow in a faster manner. It is seen in urban rapid development in the Middle East countries, specifically in the UAE and Saudi Arabia. In the year 2024, the real estate market of Saudi Arabia grew by 3.2%, determined by Vision 2030 initiatives.
Middle East Real Estate Predictions – (Must Read)
Let’s get excited because I will share some personal success stories that I’ve witnessed in global real estate markets.
Dubai: As per the STR Global, Dubai had effectively welcomed more than 15.4 million visitors in the year 2023. This report further states that 19% of people from Western Europe, and 18% of people from Southeast Asia viewed Dubai as a potential destination.
I can clearly see that these data have effectively surpassed pre-pandemic levels in terms of welcoming people to Dubai. Although, in reality, many tourists also develop a hope in their minds to hold some property (either commercial or residential) in Dubai for investment purposes.
Saudi Arabia: The latest insights exhibited that Saudi Arabia showcase a potential growth rate of 7.3% from 2024 to 2032. New investors may be enticed to invest in Saudi Arabia by this projected growth. The residential real estate market of Saudi Arabia is projected to reach $1.43tn in the year 2024. Furthermore, there is significant growth of commercial real estate market; the estimation revealed that in 2024, the market value is to reach $0.67tn. It is also expected that the hospitality sector of Saudi Arabia from 2024-2029 will grew at a CAGR of 5.03%. I believe that it’s a sign of a healthy and diversified market.
Insights from Years of Experience
From my years of experience, I made an effective course of action indicators (steps) for generating wealth from real estate investments:
1.Delay investment is far better than purchasing any property with legal disputes: identifying legal disputes on a property can be a challenge especially if you’re a new investor. So, always try to connect with local municipal bodies to identify any legal disputes on any property.
2.Use the principle of “Law of Demand”: Evaluate an optimum balance between supply and demand for properties in the area. Low supply with high demand indicates that there is an ample probability for property value appreciation.
3.Sit peacefully & evaluate your own risk tolerance (only you can answer it): I suggest that instead of depending on financial advisors or property advisors to evaluate your risk tolerance, you should evaluate your own financial stability. Understand how much risk you are willing to take. Real estate investments can vary in risk levels based on numerous factors like location, market conditions, and property type. Align your investment choices with your risk tolerance.
4.Look for areas that ensure at least a 3% rental yield: It is crucial to effectively drill down towards specific neighborhoods that show promise for appreciation or rental demand. When a particular area generates more than a 3% rental yield then it stands out as a positive indicator of your property appreciation.
Unlock Global Potential with TUMUH Real Estate Fund – Your Gateway to International Investment Success.
TUMUH Real Estate Middle East is a Cayman Islands Based which is a registered Segregated Portfolio Company, with major focus on the UAE and Saudi Arabia real estate market. The fund covers residential, commercial, retail and hospitality sectors in real estate.
For those looking to invest in the Middle Eastern real estate market, partnering with Tumuh Middle East Real Estate fund would be considered highly beneficial. Experts can assist investors in understanding the complexities of international real estate and potentially earn higher returns.
TUMUH Middle East Real Estate Fund can help investor to explore new opportunities by investing in real estate joint venture project. Currently we are working on major areas “Jebel Ali (New airport already announced), Deira Island, Downtown, Jumeirah, International City, etc.”
I observed that the Government of Dubai is consistently keen on introducing new initiatives and bringing new innovation. I am pleased to share that there are several 30 years ago properties which are outdated and has lack of modern features. We believe that the government should permit the redevelopment of these old properties, allowing them to be upgraded with modern amenities and good GFA.
My Final Summary
International real estate fund investment allows investors to open new doors and understand the changing external environment. Through diversification, you can make the most of global real estate. It is important for you to conduct the research and determine the underlying risks and threats.
You can contact us; our team has an average experience of 20+ years in this industry handling several successful projects. We can provide you better investment strategies which align with your financial goals by leveraging our extensive network and deep industry knowledge. By partnering with us, you gain access to valuable insights and professional guidance, empowering you to navigate the complexities of international real estate investments with confidence. Reach out to us for exceptional services and a partnership built on trust and success.
Article by CA Amit Kumar Garg, Chief Investment Officer, Tumuh Real Estate Middle East Fund
