I am a property investor based in the UK. I recently visited Dubai and was quite impressed with the city and its real estate market. I am planning to come back and invest in a few properties. As an investor, what type of properties should I be focusing on; apartments or villas? And should I consider off-plan or ready properties?
Dubai is indeed a great place for investment. Now depending on your budget, we can determine where and which type of property you should invest in, however on a general note I would say that there are two types of investments: one is capital growth and two is getting a good ROI. It has been known in Dubai that villas won’t get you the kind of ROI you are looking for but it can surely give you a good healthy profit margin once you decide to sell it off. This is mainly because we have fewer villas than apartments in the market right now. This also applies on some apartment developments such as Dubai Marina, Downtown, JLT and Palm Jumeirah. The maximum ROI you can get in these areas is 4% – 5.5%. At the moment, the highest ROI you can get is in areas like Motor City, Sports City and Jumeirah Village with up to 7.5% – 8% on some selective properties. Purchasing an off plan property will definitely offer you a good capital growth by the time the property is handed over, but you will have to consider multiple factors when purchasing an off plan option such as location, developer, the price you are buying for versus price for a similar ready property.
I have been a Dubai resident for the past 20 years and have been renting since then, I am thinking of buying a home now rather than wasting money on rents. My current monthly income is AED40,000. What is your recommendation in terms of the areas I should take a look that will fit my budget and also offer me and family a good lifestyle?
Most of the completed developments in Dubai have a family community feel to them as they all have shopping centers, kids’ parks and amenities. First step will be to identify the budget, so If your monthly income is AED 40,000 with no other liabilities, you will be able to get a loan value of up to AED3.2 million with an interest rate of 3.85%. This budget can get you either a two- or three-bedroom townhouse or an apartment. For townhouses, areas I would recommend are: Emirates Living, Arabian Ranches or Jumeirah Village. For apartments, my personal choice is definitely Dubai Marina as it is a great place for families. 80th adults and kids have plenty of fun places to go to in addition to your access to the beach.
I currently own an apartment a in Downtown. I am planning to sell it off and move to a villa. My budget is around AED2.5 to AED3 million. Could you please suggest some areas that fall within this price range?
For this budget, we will be mostly talking about townhouses and not independent villas. The location you prefer will determine the size of the house you can get. The three main communities where it is possible to get a ready property for your budget right now are Arabian Ranches (either AI Reem with contemporary looking townhouses or Palmera with Spanish/Mediterranean style townhouses); Springs in Emirates Living if you wish to stay closer to Sheikh Zayed Road wherein you can buy an upgraded type 4 (two bedooms + study) with a view or just a normal type 3 (three bedrooms + study) townhouse and Jumeirah Village located between these two developments where you can get a bigger property in terms of land and built -up sizes.