Dubai has always been a hotbed for property investors from all over the world however, the property market has experienced some fluctuations due to to which there is too much supply and not enough demand in the property market. However, that being said it is a buyers’ market where they are getting a lot more for their buck today than they would a few years ago. Is it really a smart decision to invest and snag that dream home you always wanted? But of course! With the advent of Expo 2020 in October, there is going to be a large influx of tourists and investors which will lead to an increase in demand. Other buyer-centric schemes such as post-handover payment terms, DLD registration fee waivers, free service charge offers along with banks offering mortgages of up to up to 75 percent with fixed interest periods and lower monthly income criteria along with the 10-year investment Visa makes this the ideal time to invest.
According to experts, this is a considerable recovery at the most appropriate time. Due to these ideal conditions sales are at an all-time high, peaking at around 14.94 billion this summer as opposed to the 12.58 billion during the same time last year going up almost 15% (1) Khaleej Times. The overall price of the property itself has dropped considerably since last year with an approximate drop of 4% and down by a lot since 2017 (2) The National.
i. Palm Jumeirah
Properties in Palm Jumeirah are some of the most highly sought after by investors due to its great seaside location. It is going to be even more in demand once the Raffles projects and the Palm Beach Residence projects are completed. An apartment in the Palm would cost you 1.15 million for a studio and 2.14 million for a 1-bedroom apartment. The villas there go for about 6.2 million to 16.5 million depending on the number of rooms. ROI comes up to about 5.3%.
ii. Dubai Marina
Dubai Marina is another investor favorite as it has a mixture of stunning apartments that offer a great view of the waterfront and beautiful pavilion styled villas with a great range of outlets to shop and dine in. The Bluewater’s island project which is launched by Emaar also makes this a very lucrative investment. Prices can go up to AED 800,000 for a studio and 1.15 million for a 1-bedroom apartment. The ROI for flats in Dubai Marina is 6.4%.
iii. Downtown Dubai
Downtown Dubai is one of the most luxurious areas in Dubai as it houses the Dubai mall, The Burj Khalifa and Mohammed Bin Rashid Boulevard. The area is also known by many as the ‘center of the now’. It has a good mix of the older style apartments as well as more modern and luxurious apartments. This area will always maintain its appeal due to the fact that the Burj Khalifa is one of the most popular tourist destinations. A studio apartment can fetch up to AED 920,000 and a one-bedroom can go for 1.45 million and has an ROI of 5.4%.
iv. Arabian Ranches
Arabian ranches is one of the more family-oriented villa communities in Dubai and is the premier villa community. It is populated by ample facilities such as a luxurious golf course and has a very calm and relaxing environment along with desert-themed villas. It also happens to be very close by to the Dubai Polo and Equestrian Club and the Burj Khalifa. A villa here can go from 2 million to 4.5 million depending on the number of rooms. An ROI of 5.8% can be expected.
v. Jumeirah Village Circle
Jumeirah Village Circle is a full-fledged community containing over 2000 villas and townhouses along with all the necessary facilities that one may need while staying there including schools, clubs, and a community center. It also has ease of convenience as it has access to all the main Dubai roads and is situated very close to the Marina and Jebel Ali. A studio in JVC can fetch up to AED 485,000 and one bedroom can go for AED 740,000. The average ROI is 6.7%.
vi. Jumeirah Lakes Towers
JLT has some of the most affordable apartments and makes for a great investment in terms of the area it is located in. It is situated opposite the more premiere Dubai Marina and is very centrally located. A wide variety of restaurants, bars and other facilities such as fitness centers, gyms, and pools are present along with The Marina Mall which is a stone’s throw away. A studio can go for a humble AED 590,000 and one beds can go for AED 900,000 and has an average ROI of 7.7%.
To conclude, we would like to say that with 2020 right around the corner and drawing closet as each day passes it is no surprise that there is a warm build in the real estate market for things to progress upwards. That being said, tickets will be going on sale in April with the EXPO officially going live in October. Couple that with the information mentioned above, now would be an ideal time for investors in Dubai to get some skin in the game, to get a good ROI that hasn’t been seen in the market in a while.