A number of fresh analysts' studies, including the latest by Moody's, confirmed Dubai’s status as the best world’s direction for real estate investments. Read more for which areas guarantee the highest return on investment in Dubai real estate.
Despite the decline in real estate prices and rentals in the past few years, rental income in Dubai more than doubled when compared to other major cities of the world, such as London, Paris and New York, according to industry analysts.
A recent study from the international rating agency Moody's Investors Service revealed that the demand for Dubai housing is expected to get further continuous support through attractive average rental income of 6 to 7 percent recorded during the last 12 months.
This is a fairly very attractive income compared to other major capitals, such as London, Paris, New York or Hong Kong, where average rental yields range between 2 and 3 percent, according to Moody's, citing data from the Global Property Guide.
However, experts have repeatedly stressed out that Dubai real estate market has a very heterogeneous nature and prices, as well as rental income, can differ greatly in different areas and for different types of properties. So, which areas should you pay attention to if you intend to invest in Dubai, and expect the highest possible return on your investments? Here are some data on the areas provided by the real estate search portal Propertyfinder.
Apartments in
These are followed by
At the same time, the central
In the villas and townhouses segment, Dubai's Town Square area offers the highest rental return of about 7.2%, followed by such villa communities as Mudon, Reem (Mira), Springs and
"Typically, smaller properties produce better rental yields than larger ones. Apartments are better than villas, and studios are better than larger apartments, for example," said Lukman Hajje, chief commercial officer of Propertyfinder.
"But also consider location. Newer, emerging communities offer higher gross rental yields than more established communities but often have higher vacancy and lower capital growth potential," Lukman added.
At the same time, Moody's expects that the demand for Dubai housing will grow at a slower pace compared to the number of new properties filling the market over the next 12-18 months.
A recent report by Knight Frank has revealed that Dubai is the 18th least expensive city when it comes to prime real estate prices. The consultancy's data revealed that $1 million can buy 1539 square feet of prime space as compared to 172 sq ft in Monaco, 236 sq ft in Hong Kong, 334 sq ft in New York and London and 388 sq ft in Singapore.
IMEX Real Estate will always help you to invest in Dubai’s property with the highest level of investment income. Turn to our Investment Guide to know more about various investment packages, depending on your purposes. Trust the professionals! Our contacts:
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