The best areas for Dubai Real Estate investment

The property sales market has seen an upturn in activity. Investors are drawn to the low prices on offer and end investors are looking to buy their homes now at these attractive prices. The return of mortgages to the market is a clear sign that the banks back property to do well over the coming years.

 

Key Aspects to Buying in Dubai

Rental returns: Rental returns are high priority particuarly if making a cash purchase. Income is gained immediately from a property and provides on going cash returns to the investor.

Service charges and maintenance quality: This is a key consideration in Dubai. Some buildings can have very high service charges that eat in to any rental returns. Conversely, some buildings have low service charges but low maintenance standards that eat in to the fundamental value of the property.

Long term demand and capital appreciation: Some areas may not offer the higest rental returns but their location or limited supply should ensure greater price appreciation of the property. This is particularly true for sought after locations and villas.

Where do you buy for the best return

We have compiled our tips for this month below. We discuss the best investment options considering the criteria above. We would be delighted for you get in touch with us for a detailed discussion.

Dubai Marina

There is a large price variation in buildings in the Dubai Marina. Some buildings have are more sought after and command higher prices and rents.

• For the best capital appreciation, we would suggest the higher end buildings in the Marina are ideally suited to this strategy. The rental returns are little lower but still good at around 7% but owing to the high demand and excellent location, they will do better. Amongst the most in demand buildings in the Marina are the Emaar 6 at the Marina Walk.
• Rental returns of around 10% can be achieved in the Marina by targeting buildings in the mid-range to affordable price levels. Examples of where a high rental yields will be achieved include Marina Diamond buildings and DEC Towers.

Jumeirah Lake Towers

JLT has good modern buildings and good views. The main attraction of JLT is its excellent location opposite Dubai Marina.

• Jumeirah Lake Towers is ideally suited to high rental yield investment. Returns of 10% can be achieved. However, it is best to target mid/high quality buildings for this.
• We believe there is an opportunity to buy as values are low due to a lack of retail and the presence of some ongoing road works. Capital appreciation is expected to be very good once these facilities come in to place.

Greens

An established community with an outstanding location, the Greens are sought after.

• The Greens can achieve rental yields of up to 10% and have excellent growth prospects. The low rise buildings are ever popular and the rental yields are highest there.
• We recommend the Greens to do well in prices over the coming years due to its popularity and also due to limited supply. The area is already built up and there will be no major, if any, additions in the form of skyscrapers. We expect this limited supply to have a strong upward impact on prices here. The greens also has a unique selling point of direct golf course views for some of the buildings.

Downtown Burj Khalifa

There is a lot of choice on offer in the Downtown Burj Khalifa. Buildings are generally of a good standard but prices vary due to the exact location and the views on offer. The highest priced apartments are those in proximity to and views of the Burj Khalifa.

• For rental yields, certain buildings can achieve yields of around 9-10%. The Lofts are a good example of this.
• For the best capital appreciation, we strongly recommend the best located buildings such as the Burj Residences and the Old Town buildings that have full views of the Burj Khalifa or the Fountain. These units are very sought after and should perform the strongest in terms of capital appreciation.

For detailed investment advice, please feel free to get in touch with us. We at Trisl RealEstate will be delighted to help you find the best investment for your needs.