According to “Post-pandemic plans for concrete recovery,” the outlook for the residential property segment is favourable. The KPMG report examines Dubai’s real estate and hospitality industries in the wake of the COVID-19 pandemic.
The real estate sector is resilient despite the unprecedented crisis that has caused substantial disruptions. Investor interest has been maintained via incentives and recovery programmes offered by the government and other stakeholders. For instance, many real estate developers, like DAMAC and Emaar, have created attractive ownership packages encouraging investors to buy real estate now.
Dubai rental properties offer promising returns
According to recent trends and polls, people are being increasingly inclined towards property letting in Dubai. When the epidemic hit, the paradigm shift towards work-from-home may have impacted people’s yearning and preference for larger, greener spaces. It makes sense that individuals would prefer a spacious, beautifully designed home and part of a master-planned community as more and more people choose to work from home. As a result, property letting in Dubai can be a great medium- to long-term investment. You must have a clearer approach as which is better investment – holiday let or buy to let to have a better idea about return on investment.
Recent GRETI data show that property letting in Dubai is a continually increasing source of revenue. The annual gross rental income is 5.19%. The statistic represents rental income as a share of the cost of buying real estate. The economic freedom index is at 77. The government interventions in the real estate sector property letting in Dubai are accounted for by propelling the growth of rental rates and curbing price manipulation. The market responds to the increased demand for rental accommodation with a comparable supply of 60–65 thousand new real estate structures each year, with developers reporting a 250% increase in annual profit.
Given that the economy is expanding by 3-4% annually, it is clear that the Emirate’s market has plenty to offer to prospective investors.
How to make Dubai property a profitable rental unit?
Here are some key suggestions to help you turn it into a more valuable asset:
Ally with a trustworthy agent
A trustworthy and effective broker will make it simpler to find the proper tenants or get property management services in Dubai. An agent from a reputable and renowned agency can be your mode of finding the right candidates that you would entrust your property.
Ensure that your agent thoroughly understands the local real estate market. Make sure you only work with those who have a Real Estate Regulatory Agency (RERA) number that is current. The agent’s employer should be a registered real estate firm with the Dubai Land Department.
Keep your paperwork ready
Property letting in Dubai requires you to know the applicable regulations and legal requirements. For a smooth transaction, all the documentation must be gathered and organised. You can get assistance with this from your agent or property.
Organising all necessary paperwork might help you market your property online as soon as feasible. Among these documents are a property title deed, your Emirates ID or passport, and a completed Form A that your broker will provide and explain to you.
You should undertake your research on rental prices in addition to the information and market expertise that your broker can provide. To obtain a sense of the price trends, browse various property portals.
You can compare your property to other offers nearby and farther away by visiting online property websites. By doing this, you will be more aware of current circumstances and be able to make more appealing offers to your tenants.
Advertise your property
After conducting market research, you may create a marketing plan that will make your holiday homes or rental property more appealing to tenants. Start by emphasising the selling point of your rental property. Consider something that will distinguish your rental from others on the market and list its essential features. Is there a store, bank, or school nearby?
Nowadays, people are drawn to big, private spaces where they can conduct business or complete remote work. Another trend is the availability of green spaces on a property or in a neighbourhood. Take Arabian Ranches III as an example. The advantage of living in a gated community with access to a top-notch golf course, themed gardens, a skate park, stables, and other sporting amenities gives these luxury villas a competitive edge.
Offer flexibility and add-ons
Consider other enticing extras or benefits that will attract tenants. For instance, you might provide renters with multiple rent checks or other flexible payment options. Some other landlords also consider offering a rent-free month, short-term agreements or a rent-and-utilities inclusive package. Consider the market profile while tailoring your offers to appeal to potential tenants.
Considering the aforementioned advice, you may make your property more desirable to your target market. Make sure that the laws are in order and that you and your broker are familiar with the subtleties of the process of property letting in Dubai and the real estate market. Also, ensure that you have created custom offers for your target audience. In this manner, you may make the most of your assets and anticipate a successful future for your real estate investment.
Every savvy investor looks at proven ways to maximize returns on property investment that you must also check to make a profitable move in Dubai real estate market.
Why investing in Dubai rental properties is a best option?
The gleaming Emirate offers a range of investment forms and modes. You could invest in stocks or rental properties, for instance. However, property letting in Dubai is a better option for investors who don’t like taking risks. What factors, then, make a rental the best financial decision?
Low risk involved
There is always a need for rentals. In other words, although individuals may come and go, they will always require a place to live and stay. Examine the figures. Dubai’s population is gradually growing as it becomes a more desirable city to live, work, and conduct business. For instance, Dubai had 1.9 million residents in 2010. But as of right today, there are around 3.2 million of them. Furthermore, according to estimates, about 70% of Dubai’s residents rent their homes, making the city a city with great rental prospects.
A steady income stream
The typical lease length in Dubai is between three and five years. The rental income you receive from your renters can therefore be enjoyed for 3 to 5 years after you locate them.
Consistent secondary income
The rental market is steady, in contrast to the volatile stock market. As a result, you may be confident that your income is constant and won’t drop suddenly and drastically, as it would on the stock market.
Little skills to apply
We don’t discuss the prospect of being a successful landlord without experience. Of course, you should research the housing and rental markets thoroughly. You can only achieve your optimum investment and ROI in this manner. However, unlike stock investing, you don’t need to research numerous strategies and study vast quantities of data.
Property letting in Dubai results in a passive income. That is to say, getting paid for your rentals requires little work on your part. If you manage your home alone, you will undoubtedly have some problems to resolve. However, you can disregard this obligation if you choose to work with a specialised business for the greatest property or holiday homes management in Dubai.
Capital value appreciation
Remember that property renting in Dubai is best investment in real estate. Additionally, the long-term trend for real estate prices is upward. As a result, when you invest in rentals, you reap the rewards when you rent out your home and decide to sell it. However, you might currently hear that real estate values have decreased.