The real estate investments in Dubai haven’t been a lot rewarding over the past two years ever since the COVID-19 breakdown. But, as the global restrictions have eased, investors are stealing the opportunity to invest in the real estate market of Dubai. In this buyer’s guide, we’ve discussed the Best Places to Invest in Real Estate 2022 Dubai for you. But before we get into that discussion, you must know why Dubai is the place for you to invest.
- 1 Why should you invest in Dubai?
- 2 What should you consider while selecting an investment property?
- 3 The best places to invest in real estate 2022 Dubai
- 4 Is it essential for investors to stick to premium properties?
- 5 What are the top transacting communities in Dubai over the last 180 days?
- 6 What are the latest Villa Market trends in 2021?
- 7 Which areas in Dubai are generating the highest yields in the real estate market?
- 8 How to invest in Dubai real estate 2022?
Why should you invest in Dubai?
It’s a great way to generate income and build wealth by investing in property. Consider the following three reasons for investing in Dubai real estate market.
Higher rental yields
As compared to many other mature real estate markets, Dubai offers higher rental yields. The average gross rental yields that investors can achieve are between 5-9%.
Lower property prices per square foot
Dubai is an affordable location to own prime real estate. Because as globally compared to many other cities, property prices per square foot are lower in Dubai.
Favorable tax conditions
The other global real estate markets apply property taxes and stamp duties. But, that’s not the case with Dubai, which makes Dubai a highly attractive investment environment.
What should you consider while selecting an investment property?
It’s also important that you know the Best Places to Invest in Real Estate 2022 Dubai that you should consider while selecting a property to invest in, not just in Dubai real estate but everywhere. ROI, which is a strong Return On Investment, should be your ultimate goal when you invest in real estate. The following factors can influence ROI:
- Facilities and amenities are available in the community, such as education, childcare, proximity to transport, and more.
- Market conditions and timing of purchase
- Maintenance costs (RERA Service Charge and Maintenance Index)
- Interest rates
The best places to invest in real estate 2022 Dubai
Now that you know why you should invest in Dubai as well as what factors you should consider while investing in Dubai real estate, here are the 10 best places for you to invest in Dubai.
As far as general property investments trends in Dubai are concerned, most financial backers are choosing Palm Jumeirah as the Best Places to Invest in Real Estate 2022 Dubai. Moreover, most land authorities are also picking Palm Jumeriah. For putting resources into Dubai land, this place is one of the most substantial spots, all thanks to Palm’s mixed undertakings and upscale area. It’s believed that when costly projects, such as Palm Beach Residences and Raffles projects, will be finished, the property investment in Palm Jumeriah will turn out to be highly rewarding.
Apart from that, it’s seen that the asking costs of Palm’s lofts that are available for purchasing have remained quite steady. These asking costs have been AED 2.58M for 2-room lofts, AED 2.14M for 1-room condos, and AED 1.15M for studios. The expensive Dubai manors and the two lofts are well-known for purchasing in Palm Jumeriah, making the place famous as well. A 5-room estate in the space costs AED 16.5M, whereas, the cost for 3-room and the 4-room estate is AED 6.2M and AED 9.2M, respectively.
If you ask for a spot in Dubai that’s most renowned among land investors, then it’s Dubai Marina. This place is famous for its high-end cafés, world lofts, and retail locations. So, Dubai Marina is one of the best places to invest in real estate 2022 Dubai.
The asking costs have stayed a lot steady for the condos that are available for purchase in this place. It means that putting resources into the property here can prove to be rewarding in the future. Since the costs are still good, so it’s a good opportunity to invest in these properties for those who are looking forward to putting resources into Dubai. The asking costs for studios, 1-room pads, and 2-rooms units in Dubai Marina are AED 800k, AED 1.15M, and AED1.9M, respectively. Furthermore, as far as the ROI for the pads in Dubai Marina is concerned, it stays at 6.4%.
Downtown Dubai is home to Mohammed Bin Rashid Boulevard, The Dubai Mall, and the Burj Khalifa, which is one of the most visited vacation spots. This place is also called the “focal point of now”. The interesting lofts and the overspread skyscraper condos are the main reasons behind the fame of Downtown Dubai. So, it could easily be one of the best places to invest in real estate 2022 Dubai.
The costs are generally high at this time. The asking costs for studios, 1-bed, and 2-room units are AED 920k, AED 1.45M, and AED 2.7M, respectively. Downtown Dubai is a good place to invest in real estate for those who are looking forward to high rental yields.
Emaar Arabian Ranches
Emaar Arabian Ranches, basically a local area but a stylish and huge estate, has been quite popular among real estate investors. Moreover, many common financial backers have also shown a great deal of interest in investing in the properties here. This place is a good option to consider if putting resources into a property for yourself as well as your family is what you’re looking forward to. Furthermore, the asking costs for 3-room manors, 4-room manors, and 5-bed units in Emaar Arabian Ranches are AED 2.6M, AED 3.8M, and AED 4.5M, respectively. And, if we discuss the expected ROI in this place then it’s around 5.8%.
Jumeirah Village Circle
This place is famous for its extraordinary lofts and luxurious manors. Jumeirah Village Circle is the place where many rich, ex-pats, and well-off locals live. If you think this is the place for you, you should invest in the extravagant properties here. As this place is one of the poshest regions in Dubai, it’s one of the best places to invest in real estate 2022 Dubai.
The asking costs for studios, 1-room condos, and 2-room lofts in Jumeirah Village Circle are AED 485k, AED 740k, and AED 1.1M, respectively. Moreover, the ROI is around 6.7%.
City Walk is one of the most well-known vacation destinations in Dubai, and is also, probably the most favored region for tourists. So, investing in a property here at such a place would be an extraordinary investment. If you want some rewarding outcomes from your investments, you can think about purchasing a loft in City Walk.
You might have heard some financial backers complaining about investing in Business Bay because it’s still under development. But, as its name suggests, most financial backers see it as a place to invest in for gaining profit in the future. This place is known for its private spaces and business. It’s a well-known place among outside nationals who visit Dubai for work. Moreover, it’s extremely famous among organization representatives and settler laborers. Whether you want to have a property here for self-use or you want to invest in a property here, results will be produced in both ways.
Al-Qudra Road might be a place for you to invest in real estate 2022 Dubai if you’re looking for a property away from the hustle and bustle of the city. Most financial backers are investing in the properties in Al-Qudra Road because the region is famous for its new condo local area and bother-free stopping. Moreover, even the recent college grads are showing a lot of interest in buying properties in Al-Qudra Road because the costs of land here are somewhat aggressive.
Jumeirah Lake Towers (JLT)
Jumeirah Lake Towers is another place with the best investing openings in Dubai. It’s the best place for those who want to invest in real estate 2022 Dubai at reasonable costs. Speaking of reasonable costs, consider investing in the condos in JLT as they are available at reasonable costs. Moreover, the skyscraper lofts here are also one of the best investments in Dubai at reasonable rates.
The asking costs for purchasing studios, 1-bed, and 2-room pads in JLT are AED 590k, AED 900k, and AED 1.35M, respectively. Even expensive improvements are being made in the skyscraper lofts here (just like the rich improvements being made in Dubai Marina), still they are available at reasonable rates. So, investing in a property here sounds like a golden opportunity for investors.
The Springs is a piece of the Emirates Living Community. Most investors and financial backers see this place as a financially rewarding property. The Springs is a calm area with the facilities of nearby schools and an awesome scope of sporting offices. That’s why investors who are looking forward to purchasing estates in the emirate, aren’t letting this opportunity silently skip away. As far as the asking costs concerning this place are concerned, it’s AED 2.3M and AED 2.7M for a 3-room estate and 4-room units, respectively. So, invest in a property here if you think it’s one of the best places to invest in real estate 2022 Dubai for you.
So, these were the best places for investing in real estate in Dubai 2022. You might be wondering whether it’s crucial for an investor to stick to premium properties or not. Read on to find that out.
Is it essential for investors to stick to premium properties?
No, that’s not the case anymore. Though the premium properties are still in great demand for holidays and short-term lets, there’s been a growth in the market for other kinds of properties as well.
Many such properties that are not premium consist of apartments and homes where people like to live for family holidays. Moreover, since many people have completely shifted to remote work over the past two years after the COVID-19 breakout, so such apartments that meet the needs of a remote worker are in great demand nowadays. Regardless of the benefits of working from home, a remote worker can get extremely exhausted sometimes. So, it might be that he or she needs a change of scenery for some months. That’s why it’s becoming more like a trend to travel to countries with most vacation spots available such as in Dubai, and live in apartments and continue the remote work. So, it’ll be beneficial for investors to invest in such apartments that are available at reasonable prices in Dubai and are comfortable as well.
Apart from that, people like tourists, businessmen, and contractors who come to the Dubai Expo or people who come to Dubai for a medical procedure are always looking forward to living in a comfortable yet reasonable apartment to live in. So, it justifies more that investors don’t need to stick to premium properties.
Furthermore, there are such areas that were once not thought of as the good ones to invest in. Such areas are near Dubai’s new airport and its all transportation projects. So, these transportation projects that are going on in Dubai and the new airport have given importance to those areas. Hence, investing in those areas will prove to be beneficial as well.
What are the top transacting communities in Dubai over the last 180 days?
As a real estate investor, you might also want to know which communities in Dubai have been on top in terms of transactions over the last 180 days. For that, you just need to know what the term transaction means when it comes along with the word “communities”. Or in other words, you need to know the difference between the value and volume of transactions to accurately infer the best areas for investing. The value of the transaction is simply the worth of a property, car, or anything like that. But, the volume of transactions means that which property or car has been in great demand among other properties or cars and has made many people invest in that property or buy that car.
Therefore, we have the following list of 5 communities in Dubai that have been on top over the last 180 days.
It mainly ranks as the best area because it’s a mature established community and serves as a tourist hub.
The reasons for it being one of the top transaction communities are its modern as well as leisure facilities. Moreover, its great transportation links and canal-side location are other prominent reasons as well.
People mainly prefer this destination because of its luxurious homes.
It’s one of the top transaction communities because it’s a peaceful community and has a strategic location.
Jumeirah Village Circle
It’s mainly popular for its luxurious lofts and manors.
What are the latest Villa Market trends in 2021?
For investing in real estate 2022 Dubai, it’s also important for you to know the latest villa market trends in 2021. Many rich people have set foot in Dubai because there have been new favorable residency permits and business conditions. So, there was a great demand for ready villas in the first quarter of 2021. So, you can say that Dubai is showing a good sign of recovery and great momentum because its value pricing is growing higher.
Which areas in Dubai are generating the highest yields in the real estate market?
As a real estate investor, you should also know the areas in Dubai that are generating the highest yields. Read on to find that out.
The COVID-19 pandemic has worsened the rents over the last 2 years and they have dropped more. Nevertheless, as there’s been ease and relief seen in the global restrictions, the prices are rising and the real estate market is recovering strongly. It’s claimed that the rents will go even higher with more recovery. Hence, the current returns shouldn’t be your concerns, rather you need to focus on the entry value. Simply put, you need to track the current demands to invest in the properties that will provide the highest yields.
How to invest in Dubai real estate 2022?
If you’re new to real estate investment or particularly Dubai real estate investment, we have discussed some ways that can help you invest in Dubai real estate. There are three different ways to invest in Dubai real estate. There are as follows:
- By buying a property in Dubai
- Real estate crowdfunding
- REITs or Real estate investment trusts
Now, we shall discuss them in detail.
Buy a property in Dubai
It’s considered the traditional way to invest in real estate in Dubai. Moreover, many people typically see it as a smart investment to do (only if you do it correctly). People believe that if you research and work with the right property advisor, buying a property in Dubai can reward you with decent profits.
The prices in the real estate markets go up and down as such markets have to go through many cycles. But, as history tells, those who stick to their properties for a long time certainly enjoy much higher capital gains.
Moreover, buying a property in Dubai and renting it out is also becoming a trend. Because it generates a decent passive income in Dubai. To be more precise, the net rental income of a property in Dubai is typically between 5% – 7%. So, you can traditionally invest in real estate in Dubai if you think it’s the best option for you.
Real estate crowdfunding
Besides investing in real estate in Dubai by buying a property, you can also invest in it through crowdfunding. It’s a company designed to pool funds from a group of investors. The company buys a property that investors choose with those pooled funds. After that, the company rents out the properties that it has bought depending upon the investors’ choices. And, based on investors’ capital contribution, the company distributes the rental income to them.
Apart from that, the company also has the option of selling the property and distributing the profits among the investors on the same basis. Investing in real estate through crowdfunding is a good option for those who want to do invest in properties available at reasonable prices in Dubai. Because the minimum amount it takes to participate with crowdfunding in buying a property is 500 Dirhams.
Real estate investment trusts
These are the funds that put money into buying properties. They buy and acquire multiple properties and manage them. Usually, the properties that have high potential to generate profits, such as hotels, apartments, warehouses, schools, healthcare facilities, and any other commercial properties, are included under the REIT portfolio for properties. Some of the multiple REIT Funds in the UAE include Al Mal Capital REITs, Emirates REIT, and Emirates NBD REITs.
You might be wondering where REITs are listed. They are listed on the Dubai Nasdaq stock market exchange. How can you invest in them? You have to open a brokerage account in Dubai Financial Market if you want to invest in them. In this way, you’d gain access to REITs and all other stocks in the Dubai stock market.
What are the points that you should consider while investing in real estate in Dubai?
You must consider the following points while investing in real estate in Dubai.
Define your objective
Your objective determines the area where you invest in a property. So, make it clear whether you’re buying a property for just yourself or some family needs or you’re investing in it for good returns and capital gains.
As an investor, you already know the importance of location while choosing a property to invest in. So, investing in properties with great locations will be rewarding.
Research and analyze market stats
It’s very important because it helps you choose the best places to invest in real estate.
Consult the best real estate agent
Lastly, you need to consult the best real estate agent for investing in real estate in Dubai. That’s because he’ll be familiar with the current real estate market trends and developments.
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