Several independent property experts have envisioned what real estate investments prospects would be in 2016 for Dubai. The majority expects rental property to bring significant income to property owners in the "future city ".
2016 will be a great time to invest in Dubai’s property market, said property expert Mario Volpi. Price fluctuations in the Dubai real estate sales market will depend entirely on supply. During 2015 analysts were giving different forecasts about the final figures of market supply, but in reality much fewer units were delivered. The same trend is likely to continue in 2016.
On the other hand, rental market maintained its previous price positions amid prices falling in the sales sector. Therefore, average rental yields in Dubai are now about 7%, which is much higher than in other major world centers, such as in London (3 to 4%), or Hong Kong (2 to 3%). At the same time certain Dubai areas and residential communities, such as the Dukes and Anantara on The Palm Jumeirah, may even guarantee as much as 10% of revenue.
Having one million UAE dirhams (USD 270 000) at your disposal you can buy a studio apartment in one of the central areas, such as Downtown Dubai, Dubai Marina, Burj Khalifa part of Business Bay, and get 5.87 up to 7.21% of gross return on investments. These areas today feel a shortage of high-quality studios for rent, thus affordable rental options there provide the most opportunities for return on investments and real estate price capitalization.
“Gross returns for both small and large apartments in Dubai are delivering between 5.87 per cent and 7.21 per cent yield which is higher than Hong Kong, Singapore and London,” said another property expert Adam Price.
Additionally, experts also advise to pay attention on the off-plan property, since there is no need to pay the whole sum at once, since providing a greater freedom for investors.