There are property investors in Dubai. Some have been here for years, while others are looking for quick returns before disappearing. Property investing is seen as a kind of alchemy. People don’t know what to invest in. But the official figures show Dubai in some areas has a higher rental yield than other cities seen as global investment hubs, such as:
• New York
If you look more closely, there are other factors at play here too. The potential tenants should be considered when buying a property. The people that you will attract have certain needs that you must cater for.
What type of property to buy
The appeal of the villa is strong. It is the typical view of Dubai – a villa with a private pool. But villas don’t provide the same kind of return as apartments. The typical villa will generate an income for somewhere between five and eight percent. This is beaten by the return from apartments at somewhere between seven and ten percent. You can see why apartments are a more popular choice for the smart investor.
You can make more money by investing in apartments also because affordable housing has been under-serviced in Dubai for some time.
What other factors influence demand for your rental property in Dubai?
It isn’t just the size of a property that determines rental demand and income. How close it is to business districts as well as building quality are a factor. If your property appeals to families then it should be close to transport links, schools and supermarkets. There are many factors that will determine how much you can get in rent from a Dubai rental property.
Think about your purchase in terms of your potential tenant. Think about what they might want and need. This way you can provide a place to live that will be in demand.