Buy Apartments / Flats in Dubai
Whenever someone looks to invest in the property market, the first thing they consider is the potential for capital gains. And with good reason too - after all, who doesn't want to make a profit? However, there's more to consider than just the price of the property when you're looking at whether it's a good investment. In this blog post, we'll look at some of the reasons why buying apartment in Dubai is a smart investment, regardless of the current market conditions.
1. Rental yields are high in Dubai -
One of the most important considerations for an investor is the rental yield that they can expect to receive on their investment. Rental yield is effectively your return on investment (ROI) and is determined by dividing the annual rental income by the purchase price of the property. For example, if you were to purchase 1-bedroom apartments for AED 1 million and rent it out for AED 80,000 per year, your rental yield would be 8%.
In comparison to other major global cities, Dubai offers some of the highest rental yields in the world. For instance, according to Savills World Research Report 2019, average rental yields in Hong Kong sit at 3.6%, while in London they're at 2.9%. This makes Dubai a much more attractive proposition for investors who are looking to maximize their ROI.
2. Apartments for sale in Dubai are in strong demand -
Another key consideration for investors is whether there is strong demand for apartments in Dubai. Fortunately, this isn't something you need to worry about - according to Colliers International's Q3 2020 report, there was significant growth in both leasing and sales activity across all residential property types during Q3 2020 when compared to Q2 2020. The report attributes this increase in activity largely due to more affordable prices and improved COVID-19 containment measures across Dubai. So if you're looking to buy flats in Dubai, you can rest assured knowing that there is strong demand for properties like yours.
3. There are plenty of financing options available -
When it comes to purchasing an apartment in Dubai, one thing you don't have to worry about is financing options. Whether you're taking out a mortgage from one of the many banks in Dubai or using your own cash reserves, you'll have no shortage of options available to you. And with interest rates at historic lows, now is a great time to take advantage of these financing options and invest in an apartment in Dubai.
The Best Communities in Dubai to Buy Apartments / Flats
When it comes to property in Dubai, there is a huge range of different options available to investors and real estate buyers. The metropolis is constantly evolving, with new communities being developed all the time offering 2-bedroom apartments, 3-bedroom apartments, 4-bedroom apartments, with some ultra-luxury communities offering up to 5-bedroom apartments. Here are some of the most popular areas to purchase apartments in Dubai and give you an overview of what each one has to offer.
With its central location and plethora of shopping, dining, and entertainment options nearby, Downtown Dubai is a prized community to live in. If you desire an active environment where there's never a dull moment, look no further than Downtown Dubai.
Jumeirah is an excellent option for those seeking to be close the hustle and bustle. You'll find some of Dubai's best beaches, as well numerous outstanding hotels and resorts. If you're looking to reside in a laid-back community by the ocean, Jumeirah should be your go-to spot.
For those who want to live in a modern and luxurious community, Dubai Marina is the perfect option. With all the amenities of a luxury resort, this man-made canal city offers waterfront apartments and villas overlooking the marina. If you're looking for an opulent lifestyle in Dubai, look no further than Dubai Marina.
Finally, Palm Jumeirah is a great option if you're looking to buy an apartment in Dubai with stunning views. The area is home to some of the finest hotels and resorts in the city. There are also a number of high-end restaurants available. If you're looking for a luxurious lifestyle with breathtaking views, Palm Jumeirah is the perfect place for you.
There are many great areas to consider when buying apartments in Dubai. Downtown Dubai, Jumeirah, Dubai Marina, and Palm Jumeirah are all popular choices among investors and real estate buyers. Each area offers a unique lifestyle with fabulous amenities and wonderful views. When choosing an area to buy an apartment in Dubai, it's important to consider your budget and lifestyle preferences. Whether you're looking for a luxurious lifestyle or an active lifestyle by the water, there's sure to be an area that's perfect for you.
FAQ - Apartments for Sale in Dubai
The market in Dubai is quickly developing, and it can be difficult to find properties for sale due to the fast pace of real estate growth and corresponding regulations. To make your search easier, follow this simple process:
Investment or Move-In: Are you buying an apartment to make it your residence or do you intend to rent it out? Depending on your requirements, you can establish an overall budget.
Agree on a budget: First, determine how much you're okay with spending on the property, including utilities. Doing this will help you figure out whether you should look at 1-bedroom apartments or 4-bedroom apartments, for example. If your plan is to move in, this step can also include the monthly cost of transportation and travel time to work; these costs are sometimes forgotten but they can add up quickly over time.
Search online listings: Check out some of the more well-known sites like houza, Property Finder, Bayut, and Dubizzle that offer verified properties for sale in Dubai.
Work with an agency: Real estate brokers in Dubai will help you find the best neighborhood to suit your needs and preferences. They can also assist with legal paperwork, moving companies, and finding tenants - all based on what you need.
As more and more investors flock to Dubai each year, it's no surprise that an increasing number of buyers are looking to purchase property here. Whether you're interested in a residential property or one that you can rent out for profit, there are three ways to purchase property in Dubai:
Browsing Real Estate Portals: There are many reliable places online to find apartments for sale in Dubai, like houza, Bayut, Property Finder, Yalla Deals, and Dubizzle. All you need to do is select the area you want to live in, what type of property it is (e.g., apartment), how many bedrooms there are, and your budget.
Choosing Real Estate Companies: If you're looking to buy property in Dubai, an agency may be able to help. These experts can offer guidance on different neighborhoods and types of properties. They also often handle tasks such as title deed registration and transfer, conveyancing, and power of attorney services.
Buying Directly from the Owner: Although it is easier to purchase an apartment from a private seller, it might not be the best option due to the lack of marketing and publicity. In Dubai, you will frequently see signages advertising apartments for sale on buildings; however, most exclusive apartments won't have this type of advertising, limiting the buyer’s options.
The most popular places to buy apartments in Dubai are a combination of luxurious and affordable neighborhoods.
You can find luxury apartments in areas like Palm Jumeirah, Downtown Dubai, Dubai Marina, Palm Jumeirah, The World Islands, Jumeirah Bay Island, and Jumeirah Beach Residence (JBR).
Some more affordable communities with available apartments include Al Furjan, Dubai South, Motor City, and Dubai Silicon Oasis.
For those looking to invest in rental property, Dubai offers some of the highest ROIs in the world. In areas such as International City, Dubai Silicon Oasis (DSO) and Jumeirah Lake Towers (JLT), ROIs can be as high as 9%, 8.2%, and 7.9% respectively. Even in more popular tourist areas like Downtown Dubai, Dubai Marina, and Palm Jumeirah, average ROIs still hover around 5.4%.
There are a few one-time fees that new apartment owners in Dubai should be aware of, such as the agent's commission, legal fees, and more recently, community charges. These costs will depend on how much the apartment is being purchased for. Additionally, budget for monthly maintenance and service charges after you've bought your unit; these bills can quickly start to add up if you're not careful! Lastly, don't forget to factor in the cost of furnishing and decorating your new home to make it feel like your own.
While the process of buying an apartment in Dubai may have some initial costs associated with it, there are many long-term benefits to consider as well. For example, you'll have a stable place to live that can appreciate in value over time. Plus, you won't have to worry about rent increases year after year. Owning your own home is a great way to build equity and financial security for yourself and your family.