Dubai, the eponymous capital of the seven emirates, is renowned as the booming real estate market and thriving hub of trade and tourism. From the availability of global cuisines to designer boutiques and from adrenaline-pumping adventures to promising real estate options, Dubai holds the charm and charisma to fascinate people from all over the world. Not just do you find the tallest skyscrapers, captivating architecture and contemporary developments but Dubai real estate offers some of the most attractive rental yields for potential investors.
Why invest in Dubai real estate?
Investing in properties for sale in Dubai is a great way to build assets, create wealth and generate stable secondary income. Though all investment vehicles carry risk, yet real estate is considered a safer bet. And when it comes to Dubai;
- Properties in Dubai offer higher rental yields than several other global real estate markets. Moreover, this sector has proved to be resilient and stable after the global pandemic induced a temporary halt.
- Properties for sale in Dubai are affordable, making them a desirable prime investment option. The property prices per square foot are still lower than in many other cities around the world.
- Now, the UAE government has announced to link property investment with the residence visa programme, subject to certain conditions. For instance, for properties valued at or above AED10 million, the investor will be entitled to a 10-year residence visa.
What to consider while investing in Dubai real estate?
If you are planning to invest in buy-to-let properties in Dubai, you may apprehend due to uncertainties associated with the past couple of years. On the contrary, the real estate market is one of the best investment avenues to earn returns both in form of capital appreciation and rental returns.
A large number of global investors have recently turned to Dubai real estate market and the data supports this claim. Furthermore, the UAE government has improved regulations and buyers’ protection laws for foreign investors continued to the surge in real estate investment.
In June 2022, Dubai real estate market recorded AED22.7 billion of sales, which is almost 71 per cent of the total sales volume in 2021. According to the data obtained from the Dubai Land Department (DLD), is the highest sales figure in the last 13 years.
So, what do you need to know, if you are planning to invest in buy-to-let properties in Dubai?
Location
A majority of property agents in Dubai unanimously agree that the three most important factors to consider while buying property are: location, location and location. However, when it comes to choosing the best location in Dubai for buy-to-let properties, certain other factors need to be considered too. For instance, if you are planning to invest in luxury apartments with premium facilities then Dubai Marina, Downtown Dubai and Business Bay are amongst the top options to consider. If you plan to invest in reasonably priced buy-to-let properties in Dubai, you can invest in Jumeirah Village Circle, Dubai Silicon Oasis and Al Barsha.
Comparative property prices
The prices for luxury properties for sale in Dubai have been continuously increasing, owing to the demand from both local and international investors. However, these properties are still undervalued as compared to other established markets around the world, making them a great opportunity for potential investors. If the current trends are to be believed, which means prime properties will see more increase in prices in 2022.
However, if you cannot afford investing in prime buy-to-let properties in Dubai, you can look for affordable areas offering reasonable properties. And the good news is that non-prime areas have also observed a rise in demand and an increase in property prices. Though these properties may not offer stellar views or high-end amenities but a number of first-time investors have shown interest in new-build homes. People have invested in buy-to-let properties in Jumeirah Village Triangle, Dubai Hills Estate and Dubai Silicon Oasis because these areas have observed rising interest from tenants.
Expect higher rental prices
Not just the property sales prices but the rental prices of properties in Dubai have seen a significant spike. Almost a 41 per cent hike was observed in rental prices in high-end villas located in prime communities in Dubai. According to a report, “High-end areas in Dubai saw rental growth of 25 per cent last year, the highest among 30 cities listed in the index, fuelled by the government measures mentioned above and the return of professionals to the city.”
This is what appeals to a majority of expatriates who have been moving to the UAE in search of work and making it their permanent home. “A number of fresh inquiries for residential projects that are received each day confirm that there is a huge demand for high-quality rental properties in Dubai,” said Muhammad Ali Mustafa, Director and Co-Founder of HFRE. When rental properties are in high demand, it is another great reason to invest in buy-to-let properties in Dubai.
Invest in flexible designs
The lifestyle has changed after the pandemic, as now people prefer properties that can be personalized according to their feelings, taste and mood. Whether you are first-time investor or a savvy buyer, invest in those buy-to-let properties in Dubai that offer flexibility and can be customized according to residents’ needs. For instance, work life has changed and now professionals do need separate space to set up their home offices or a place for school work and a lot more. Remember, people are no more looking for four walls, a modern kitchen and a fully-finished bathroom but they look for efficient designs that can fit into their work, home and play life altogether in one residence.
Moreover, more than just looking inside the home, tenants now look for facilities and prefer having a wholesome package. The tenants want an active and positive community around, better connectivity and improved facilities. For instance, is a school around? Is there any healthcare facility down the road? Or is there any park around the development? In short, they will choose quality living over price.
Conclusion
When it comes to investing in buy-to-let properties in Dubai, keep these pointers in view to help you grab better options. You can also take help from HFRE, professional property agents in Dubai and all you need is to call us at +971 4876 2473 or write us your query at info@hfre.ae. One of our sales agents will get back to you with the best available options in the market, according to your budget and investment needs.
