The real estate market in Dubai is developing as fast as the metropolis itself.
Not only are individual residential buildings being built in the city, but also entire modern neighborhoods.
Which area and residential complex is more suitable for the particular purpose of a buyer? In which districts are real estate the most profitable? And where will they not meet expectations?
A huge number of investors are interested in the answers to these questions. We have prepared an article to provide this information for you.
There is no clear answer to this question because different people buy housing in this city for different purposes:
Whatever the case, it is prestigious to have a house here and there are many advantages for the owners.
Each buyer has their own goal but the housing location is an important factor for everyone to consider. Investors from Russia and Ukraine often choose the following parts of the city:
Palm Jumeirah is an exclusive area which is why most Russian-speaking buyers have been investing in local properties here for many years.
The other districts are less popular but there are also excellent locations where developers implement their projects that meet the most modern standards. Other places in the city are currently not all the same because they are less developed in technology.
One example of a modern area is District-2020. This area has residential complexes with many shopping and office centers, and exhibition halls where an international Expo will be held in 2021.
Moreover, the largest airport in the United Arab Emirates is located in this area. This is why in District-2020, as investors expect, there will be the largest flow of visitors – both participants of the event and tourists with many of them wanting to stay in this district.
Dubai Creek Harbor is a very popular area. The tallest building on the planet will be opened here in 2021 with a height of 928 meters and 200 floors.
There are no apartments in it but apartments will be built around it. There will also be commercial facilities. According to experts, Dubai Creek Harbor will be built up in the next 10 years. Currently, there is similar real estate on the local market with housing for sale in more than 10 skyscrapers.
Real estate experts say that such projects attract buyers including investors as people go to see the sights and live here during their holidays near these world-famous buildings. Tourists rent housing, emigrants and investors buy property, and others rent and resell real estate.
Another new area that experts call promising is Emaar Beachfront. It is being built on an artificial island and consists of 27 high-rise buildings where luxury real estate is sold. Guests can enjoy a private beach area with a private entrance. Soon there will also be a yacht club, a port for cruise ships, recreational areas, and a 135-meter lighthouse with an observation deck.
There are also 2 districts in Dubai on the outskirts of the city. One is International City and the other is Dubai Land where you can buy the cheapest apartments in the metropolis.
In addition to the cost, investors are attracted to the high profitability of renting for a long period – up to 9% per year. At the same time, experts say that local real estate is not profitable for those who want to resell them.
There are many reasons for this. It is not easy to sell housing in International City because it is of very poor quality here (both apartments and the buildings in general), and the infrastructure is poorly developed in Dubai.
Which construction companies can you trust?
Foreign buyers mainly buy property in popular and prestigious areas that are worked on by state-owned developers. Of these, the following can be distinguished:
These companies have made a name for themselves, gained confidence, and are time-tested. Such developers do not just build individual buildings but create entire areas, developing their unified style. With residential complexes, they build parks, cafes, restaurants, shopping centers, office centers, and so on, creating the infrastructure of an entire urban area.
The investor can be sure that one organization is responsible for the area, its livability, and the level of its development.
The investor does not take any risks with such developers who have a lot of experience.
The main thing to understand is where and in which residential complex it is better to choose an apartment for your purpose: where it will be more quickly profitable to sell the real estate or rent it out?
Realtors will help you here. They will tell you about the features of buildings, the quality of real estate, how management companies work, and many other nuances.
If we talk about cheap districts on the outskirts of the city, the average cost here is 100,000 US dollars. For this price, you can buy real estate, for example, in International City. However, it should be noted that the owner will be able to rent out local housing only to emigrants who work in the city and do not receive the highest salary. The employer looks and pays for housing for them. Therefore, these spaces are inhabited by several people at once. In such housing, repairs have to be done much more often than where fewer people live.
It is almost impossible to rent apartments to tourists here because the area is quite far from the city center.
In addition, it is not easy to build a local facility because the area does not have the best reputation and a dozen people live in neighboring apartments.
The cost of apartments starts from 150,000 US dollars in more popular places. Good property is located near the beaches where you can become an owner for at least $320,000.
It is noteworthy that in one area, the cost of housing may differ from different construction organizations.
For example, there are more than 200 high-rise buildings in Dubai Marina. The area was built up by different developers because the housing differs not only in price but also in quality and rental rates. You can buy a studio apartment for about $150,000 but even the name of the area cannot guarantee that it will be easy to find tenants for the apartment. The reason for this is the poor-quality interior decoration and poor service from the management company. It is better to choose more expensive housing that can bring a lot of income to its owner.
The most cost-effective apartments in Dubai Marina were built by Emaar Properties PJSC.
The housing from this company has passed the test of time. They are many years old but the decoration and engineering have remained in the same condition – it still looks brand-new.
The cost of rent and the demand for these houses is higher than in the neighboring ones.
Choosing an area is a personal matter but experts recommend not paying attention to peripheral locations. Yes, they sell quite cheap housing but it is difficult to make money from this. There is low-quality housing here, it is not profitable and difficult to sell and rent except to employees who live with 10 other people in an apartment.
In addition, it is important not to forget that if one area is built by different developers, the area is unlikely to be in the same style. That is why you need to take into account not only which developer built a particular building but also who built the district as a whole.
AX Capital helps buyers choose and take ownership of real estate in Dubai. Our organization’s employees are happy to offer their services to you. Choose an apartment today. If you have any questions, please contact our representatives on the phone number listed on the website.