Dubai is known for lavish lifestyle, exquisite landmarks and astounding skyscrapers that feature world-class amenities. Over the years, property investment in Dubai becomes the most lucrative venture for the investors because of myriad of opportunities to get high returns with low risk.
Dubai possesses cosmopolitan lifestyle, tax-free environment and stable economy and its real estate market is the highest-performer that continues to thrive with seamless and highest-standard of experience.
As per Stats, the price of any average residential property in Dubai increases by 15.9% in a year whereas the villa prices hikes up by 16% with consistent demand.
Here, in this blog we will shed light on the latest trends, tips and opportunities for investment properties in Dubai. Read on to know if you are a beginner or have a plan to buy a property in Dubai.
Why you should invest in a Dubai property?
Real estate, whether international or local has been always the best investment decision. Dubai becomes a favourite city for hosting mega events and exhibitions, housing large commercial centres. Palm tree-shaped man-made island and luxurious apartments.
Higher tourist influx due to expatriates, business and industry; property and real-estate investment becomes most lucrative and profitable for the investors all over the world. Dubai presents golden opportunities to make investment in properties that complimented by high demand of commercial and housing property, strategic location, high rental returns, robust engineered structure and simple tax regulations.
A report says, the thriving property investment industry of Dubai staggered AED4.76bn ($1.3bn) of transaction with mortgage and sales in a single day. The safe and high earning opportunity can make Dubai a city an ultimate source of achievement for property investment in the near future.
Investment opportunities for Dubai properties
After imposing of Freehold Law of 2002, any non-UAE citizen can buy, let, sell or rent investment property in Dubai freely. This law hugely impacts the real estate sector in Dubai giving it a significant growth in the last 20 years. Now, foreign investors from every corner of the world make smart investment in the properties of Dubai.
Not only they can invest but also can enjoy the access and full ownership of the property without any restrictions. Rather than spending money on stamp duties or property tax, investors can make maximum profit with a one-time payment of 4% of the value of property to DLD (Dubai Land Department)
Dubai provides investment-friendly environment with a number of opportunities in real estate industry despite commercial, residential, rental or buy-to-let use. The city has multiple investment chances catered to varied preferences and budgets.
You can try out some properties and projects in pre-launch phase, off-plan properties which give more affordable prices along flexible plans for payment. Also, investment properties have a high potentiality for the capital appreciation for the development progress.
In contrast to that, ready-to-move properties give an immediate way to established communities and rental income. This is an excellent option for the investors who seek immediate return and stability.
Which are some renowned properties in Dubai?
Are you looking for the most potential and best area of investment properties in Dubai? Here, we mention some posh and renowned locations where your investment will be worthy.
Downtown Dubai
Housing the very famous Dubai Mall and Burj Khalifa, this is the most sought-after and prestigious area for the investment properties. Downtown Dubai district is the home of good fusion of commercial and residential properties making it lucrative to the investors.
Here you can find high demand of office spaces, penthouses and luxury apartments. So, good capital appreciation and rental returns are consistently high in this location. Investing in apartments in this district will yield 4.9% of rental returns which is comparatively higher than any other famous cities across the globe like London and NYC.
Dubai Marina
This location offers bubbling lifestyle featuring waterfront promenades. Known for the astonishing skyscrapers, it equips varied residential properties ranging from spacious villas to luxury apartments. High demand to enjoy a living by the waterfront is the golden opportunity to capitalise by the investors.
The immaculate amenities, unique architecture and easy transportation to famous leisure spots make this included in a bucket-list for every investor. Dubai Marina can generate 5.80% of ROI for its apartments.
Jumeirah Village Circle (JVC)
This is a very popular residential community occupying around 870 hectares of land with about 80000 residential opportunities. Family-friendly environment and tranquil surrounding of JVC makes it a prime attraction to different types of tenants involving families and young professionals.
In this residential society, you can find a wide range of apartments, townhouses and villas at unbeatable prices. It can be your ideal choice if you want good capital appreciation and long-term rental return. JVC can offer a flat 5.94% of ROI with an increase in value up to 8% every year.
Palm Jumeirah
The most exclusive and iconic area in Dubai is Palm Jumeirah. It is the synonym of lavish and luxurious living. Although a man-made island but it equips with laden of world-class amenities. You can find high-end penthouses, apartments and villas here that over look the Dubai’s skyline and Arabian Gulf.
With an investment here, you can get direct access to glamorous lifestyle, private beaches and many other facilities. The popularity of the area remains high amongst tourists and international investors that ensure favourable returns of about 5.30%.
Important factors to consider for choosing investment Dubai properties
Some key aspects are here for you to consider while making an investment in Dubai real estate market:
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Well-versed to Dubai Property Market
Get familiar well with the property market in Dubai prior to make any investment. The market is huge and diverse meeting the demands of different segments like hospitality, retail, commercial and residential. So, it is beneficial to research a bit on local regulations and stay updated with the latest market trends and reports for well-informed decisions.
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Selecting the ideal location
Dubai is one of the richest cities in the world that has different locations with unique potential of investments. Location always has an integral role to play. Hence, you need to consider a number of aspects like future development plan, amenities, commutation links and proximity to the business hubs to select the ideal location to get a property in Dubai.
Some posh areas such as Business Bay, Palm Jumeirah, Dubai Marina and Downtown Dubai are in high demand and give high rental yields.
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Going with a reputed real estate agent in Dubai
Dubai real estate market is really tricky to navigate by anyone mainly novice investor. Therefore, it is a good decision to partner with professional real estate broker with wealth of knowledge about local market.
There are many reputed real estate agencies to help you navigate through the whole procedure, sharing valuable insights so that you can choose the right property in Dubai. They also run historic and live data analysis to figure out the regions and areas which have yielded high returns for a long haul.
Always choose an agency with many years of experience in this industry and spread across various regions so that you can seek assistance in every step of owning an investment property in Dubai from beginning to end. Make sure, they provide necessary help when it comes to selling and renting out the property as well.
You can find the best real estate agents in Dubai at Topagents.ae! Choose an agent who has license from RERA (Real Estate Regulatory Agency). Remember, clear and concise communication can help them to understand your investment preferences and goals and assist to buy the most suitable property.
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Calculate Return on Investment (RoI)
Before finalising any property and signing the purchase contract, you should evaluate the maximum return on investment against that property. During the evaluation, ponder various pivotal aspects including maintenance costs, occupancy rates, capital appreciation, and rental yields. Also, keep hunting for the properties with healthy ROI that can double up your profits.
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Gain information about rules and regulations
Strict legal procedures are there and should be followed to invest in real estate market in Dubai. Dubai Land Department governs the entire real estate sector ensuring utmost investor transparency and protection. You must understand several processes involved in the entire procedure such as property registration, legal framework and costs included for seamless investment experience.
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Keep hunting for the latest trend
Abrupt investment always leads to loss. That’s why it is essential to take informed investment decisions. While planning to make an investment in Dubai’s real estate sector, do extensive research and acquire plenty of knowledge on the latest trends in the property market. At present, you will find affordable housing option is on huge demand amongst other available options.
So, investing in the mid-range properties is the golden opportunity for the investors to meet the demand. Also, with each passing days Dubai is more focused on eco-friendly and sustainable developments promoting green practices and energy efficiency. You can target those projects to cater to eco-conscious tenants and yield high- and long-term returns.
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Proper management of Investment Dubai Properties
After you own a dream investment property in Dubai, all you need to prioritize efficient management for optimising the returns. You can ensure good maintenance with the following tips:
- Hire a property manager- Firstly you need to hire a professional and reputed property management company after owning a property in Dubai. It can provide you necessary relief from regular responsibilities to maintain the property including legal compliance, rent collection and tenant screening.
- Regular maintenance- You should always give property maintenance the top priority. You should carry out periodic inspections, ensure legal compliance to maintenance regulations and take any repair into prompt account. All of these will give assured value optimisation to your property.
- Rental strategies- Set most competitive rental rates for your investment property in Dubai after extensive analyse of the rental market and ongoing trends. High tenant retention, on time property marketing and effective lease agreement will maximise both rental income and occupancy.
Wrapping up
If you can make smart investment in Dubai Investment Properties then it is always rewarding, fruitful and beneficial. But remember, you set your debut in this venture with proper research and careful planning approach. Informed decision and right strategy increases the potential of real estate market of Dubai to give maximum and long-term return on investment.
