Things To Know For Investing In Dubai Property As A Foreigner

What Is The Yield On Property Rental Income In Dubai?

There are many factors that go into calculating the estimated yields when it comes to investment property. The most important one is the real estate mantra everyone knows about- Location! Location! Location!.

The better the location the better your rental yield. Then another factor will be its size. The larger the apartment the higher the rent. That means you can get a better yield out of your apartment when it is larger than some.

But this is not always going to be the case. Sometimes smaller apartments in the right area will produce better yields than larger apartments in other less desirable neighbourhoods.

A Quick Comparison Rental Yield Chart

This chart will only show the best rental yield for specific neighbourhoods. As you will see these examples are not always going to be the same size. These figures come from 2022 and can be found at this link.

All figures are approx. and can change at any time. Plus, these figures are for Dubai only and the figures are in US dollars.

Location & apartment size Purchase price Rental fee Yield
Downtown- 2Bdrm $898,000 $5445 7.27%
Palm Jumeirah- 2Bdrm 925,000  4991 6.47%
Dubai Marina- studio 231,000  1407 7.29%
Business Bay- Studio 225,000  1407 7.47%
JLT-Studio 142,000  1044 8.76%
JVC-Studio 121,000   817 8.09%
Arjan- Studio 119,000   749 7.50
Al Furjan 108,000   726 8.00%

Some of the larger and smaller apartments were close to these figures in some of these neighbourhoods. Then in other areas of the UAE, some of the yields were as low as 4% and sometimes as low as 2.5% but for the most part, landlords were seeing a 5 to 7% yield on their property

Is Buying Property In Dubai A Good Investment

Many people would say that this is the time to buy property in Dubai. Even though property values are high at this time, it has been predicted that they will go higher for several more years.

One of the reasons for this constant increase in value is that the leaders of Dubai and the UAE are making their territory real estate investor friendly. Not only do you get to enjoy a very nice luxury lifestyle but once you get your golden visa, you can enjoy everything Dubai offers its citizens.

Some of the most popular locations to buy are DAMAC Hills 2, Jumeirah Village Circle (JVC), and Dubailand. These neighbourhoods are enjoying a good 7 to 8% ROI. That is better than some interest rates many banks offer their customers.

Plus, Dubai and its surrounding area have a heavy tourist flow. That means that even with short-term rentals you should be able to receive a fairly good ROI on your investment.

Right now Dubai is indicating between an 8 and 10% hike in annual tourist visits. Then with the drive to be a central worldwide business hub, Dubai is attracting top talent who all need a place to stay.

Play your cards right and you can make sure your investment pays off better than if you bought in other regions of the world. With the variety of real estate investment opportunities, you can tailor your real estate portfolio according to your preferences.

You have flats, 1 to 4-bedroom apartments, commercial property, and more to invest in. Customizing your portfolio would be the ideal way to make sure you are protected against inflation.

The answer to the question is, yes, buying real estate in Dubai is a very good investment once you look at the rental yields and the rising property values.

Is 2023 A Good Time To Buy Property In Dubai

According to all the experts, this is a good year to buy some investment property in Dubai. Not because it is the go-to city at the moment. But because 2023 is said to be continuing the growth in real estate values that has occurred over the past 2 or 3 years.

The growth in real estate sales has been on target if not surpassing targets and the year is not half over yet. Then with the constant development taking place, Dubai has a lot of apartments, villas, and townhouses ready for purchase.

Here are 5 reasons why Dubai is the place to invest for 2023:

1. The High Influx Of Wealthy Foreigners Investing In The Area

The city has become a millionaire magnet as many wealthy foreigners compete for luxury housing in Palm Jumeirah, Dubai Marina, Downtown Dubai, Jumeirah Beach Residence, and other top-of-the-line neighbourhoods.

2. Favourable Market Conditions and Yields

Right now ROI and rental yields are topping other more traditional real estate investment areas of New York, London, and Hong Kong. Predictions say that this trend is going to continue.

3. Supportive Government Initiatives and Regulations

Enticements like Golden Visa, easy-to-navigate regulations, and other attractive initiatives have made Dubai the place to invest at this time. Zero property tax is very attractive to many investors.

4. Economic Resilience

The leaders of this city and area are working hard to make real estate investments in Dubai, etc., a safe haven. They have created a diverse economy that has helped investors weather many economic storms

5. Fast-Growing City

People want to live in this area. That makes investing now a very good prospect. The demand should help boost value and at the same time help the ROI for many investors.

Some Additional Words

Real estate investing is not for the faint of heart. You have to know when to stand pat and investing in Dubai will help you do that. When you need help expanding your real estate portfolio, give our company a call.

Our RERA-approved estate agents know the best neighbourhoods and apartments that are perfect for your investment strategies. Our company has over 10 years of real estate investment experience in this area.

To make the right choice call our top agents today and see what they say about investing in Dubai. You should be glad you did.

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