Investment Real Estate in Dili
Dili property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Dili.
Search Map of Dili Investment Real Estate
Dili (Portuguese/Tetum: Díli) is the capital, largest city of East Timor and the second largest city in Timor islands after Kupang (Indonesia). It lies on the northern coast of the island of Timor, in a small area of flat land hemmed in by mountains. The climate is tropical, with distinct wet and dry seasons. The city has served as the economic hub and chief port of what is now East Timor since its designation as the capital of Portuguese Timor in 1769. It also serves as the capital of the Dili Municipality, which includes some rural subdivisions in addition to the urban ones which make up the city itself. Dili’s growing population is relatively youthful, being mostly of working age. The local language is Tetum, however residents include many internal migrants from other areas of the country.
The initial settlement was situated in what is now the old quarter in the eastern side of the city. Centuries of Portuguese rule were interrupted in World War II, when Dili became the site of a battle between Allied and Japanese forces. The damaged city returned to Portuguese control following the war. In 1975, a civil war between Timorese political parties broke out, leading to a declaration of independence and a subsequent invasion by Indonesia. Under Indonesian rule infrastructure in the city was developed, with landmarks such as the Immaculate Conception Cathedral and Cristo Rei of Dili being built during this time. The city expanded as its population grew to over 100,000 people.
Resistance to Indonesian rule faced violent repression, and a massacre in Dili led to international pressure culminating in an independence referendum. Following a vote for independence violence erupted in the city, destroying huge amounts of its infrastructure and leading to an exodus of refugees. A period of United Nations rule followed, during which international agencies began the reconstruction of the city. Dili became the capital of an independent East Timor in 2002. A period of violence in 2006 saw another period of infrastructure damage and population displacement. In 2009 the government launched the City of Peace campaign to reduce tensions. As the population has continued to grow and the original site of the city has filled up, the urban area has expanded into coastal areas to the east and west of the main city.
Infrastructure in Dili continues to be developed. The city was the first location in East Timor to see 24 hours of electricity, although its water infrastructure remains relatively limited. Education levels are higher than the national average, and the country’s universities are located in the city. An international port and airport lie within the city limits. Most economic activity comes from the tertiary sector and public employment. To further build the economy, the government is developing the tourism potential of the city, focusing on cultural, environmental, and historical attractions.
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The financial stability of Dili has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.
Buy to Rent in Dili
Renting out your Dili buy-to-rent investment property can grow wealth and income.
Whatever your goals with investment property in Diliare – preparation is key:
Flipping Investment Property in Dili
Flipping property in Dili
Flipping property is when we advise clients to buy a Dili property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Dili market has a time to react to the renovation.
The Flipping Strategy in Dili
Investment property flipping in Dili is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Dili real estate investments are sometimes referred to by professionals as ‘distressed’ Dili real estate.
What is distressed Dili property:
- Dili property in need of renovation
- Dili real estate with a change of puropose and use
- Oversold Dili property
- Bank repossessions in Dili
Put simply, long term investors in Dili purchase the property, renovate it and make it a lot more attractive to potential buyers.
Calculate profit that you make from Dili investment property flipping:
Final Selling Price less Cost of Purchase less Costs = Profit
Here is an example:
Dili property purchase price: $220,000
Renovation costs: $20,000
Other costs: $25,000
Property sale price: $400,000
Experienced property developers in Dili use a minimum profit value of 22% when looking at potential Dili projects. The reason for this is because there are lots that can go wrong in Dili property flipping and working on a potential margin of 22% should still leave a good margin of error.
Property Secured Investments is a Private Equity fund that invests in Dili and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website
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