As the investment center of the Middle East, Dubai has the safest investment environment in the entire region. It is one of the most popular business and tourist destinations in the world. A potential investor can find a variety of properties in the Dubai real estate market to invest their own net with different price categories. In addition to favorable flat prices in Dubai, more and more developers offer convenient payment plans after the transfer and discounts on registration fees. Some even decide to completely waive the registration fee in DLD for buyers, which has especially affected the increased interest in luxury real estate in Dubai.
Why it’s worth investing in Dubai
There are many investment opportunities in Dubai, which include buying real estate, starting your own business, etc. In 2021, the real estate market corresponds to the following indicators:
- Annual rental income can range from 4.6% to 10% of ROI.
- The real estate market has become more affordable and premium real estate is in particularly high demand.
- The ability to diversify assets into different types of property with different rental levels and locations.
- The favorable geographical location of Dubai, as well as a rapidly developing segment of commerce and technology, as well as advantages for doing business.
But one of the most important and decisive factors regarding the maximum ROI is the choice of the most profitable area. So, there is a list of the TOP-3 areas with the highest ROI.
Since the beginning of 2021, Dubai Marina has been attracting great interest from both premium real estate investors and renters, which is primarily caused by high-quality real estate and proximity to tourist attractions. In addition, Dubai Marina offers the best ROI for investors looking to buy apartments in Dubai.
The average ROI for luxury apartments in this area is 5.5% per annum. Although depending on the location of the building, the developer and the proposed amenities can reach up to 7-8%.
There are many hotels, skyscrapers, shopping and entertainment centers, a park, beach clubs, and resorts on the island. In Palm Jumeirah, you can buy any type of real estate from apartments, villas, townhouses, penthouses, and land plots located in gated complexes and communities. The average price for renting apartments on Palm Jumeirah Island is from AED 108,000 (USD 29,400) to AED 164,000 (USD 45,000) per year. The ROI on the island is 4.47% per annum.
Business Bay occupies an area of six sq. km in the heart of Dubai. It is located just 1.5 km from the world’s highest building Burj Khalifa and The Dubai Mall. The area is under development and it is a new business center of the region with more than 240 office and residential towers, landscaped gardens, a network of roads and waterways.
According to the development plan, 22.1% of the area is intended for domestic use, 18.5% for commercial use, and 59.4% for mixed-use. One Business Bay is a 35-story skyscraper. It is just 3 minutes from the Business Bay underground station. Dubai International Financial Center (DIFC) and Emirates Towers are located nearby.
Need assistance in buying real estate in Dubai?
It is more reliable to hire an experienced specialist who is familiar with Dubai real estate market, knows all the legal subtleties and «pitfalls». The agent of Ax Capital will help you find a reliable developer, choose the most profitable project for investment and issue documents according to all the rules.
- About the Author
Alex Grigoryan is a Professional Home Improvement and Lifestyle Writer. He has been in the industry for over 6 years and has been writing for Chique Home Living since 2019. His work has been featured in prestigious blogs such as Spruce Home, Better Homes & Garden, and more.