What type of real estate investment has the highest Return On Investment (ROI) in Dubai?
You are investing in real estate in Dubai. When you first hear “investments,” you may expect a rewarding experience. Dubai has an ever-growing and developing economy, and real estate is a sector that is blooming in this city. What type of investment could be the best? After all, you can only venture with your money if you first get some basic knowledge. So we are here to help! This article will tell you about a few investment types with the highest ROI. This list could be a good start if you are ready to invest.
As the name suggests, residential investment refers to investing in houses you can rent to other people. You can either rent a house and then re-rent it or buy a house and then rent it. To have the highest ROI when investing in residential properties, you need to consider the following factors:
Search for apartments rather than single-family properties:
It is better to find a building with multiple units. In this scenario, you can benefit from numerous resources or people. For example, with a single-family house, you will get it from just one source. But of course, you can wait for its value to increase and then resell it, but the result is the same.
Find areas with high Rental yields before you start the investment:
Finding the areas with the highest rental yields can get you much more profit. According to some research, those areas include:
Jumeirah Lakes Towers
The area is near Downtown and Dubai Marina, yet you can find properties with better prices there. For that reason, the site has attracted many investors with particular budgets to start their real estate investing journey. However, it has satisfied them and given them a very high ROI.
One of the most popular tourist sites in the world, Downtown Dubai, is still a favourite with buyers. Demand will continue to exceed supply, and property prices will rise soon as more well-off individuals and foreign executives opt to relocate Downtown. It is no wonder as the area is close to landmarks such as Dubai Mall, the Dancing Dubai Fountain, the Burj Khalifa, and business centres such as DIFC and Business Bay.
Close to business hubs, tram, metro, and the sea, this area is always in high demand. Moreover, Dubai Marina also connects with the mainland through a canal, which adds to its advantages. Some people move here for good reasons, making it appropriate for short-term and long-term real estate investments.
Because this area has studios and apartments of excellent quality and freehold ownership, they give the investors very high yields. The demands on the home, mainly the studio, are increasing.
Jumeirah Village Circle (JVC)
JVC is a reasonably priced mixed-use development that offers a variety of modern apartments, villas, and townhouses connected by several green parks, contemporary amenities, and canals. It is in high demand due to its attractive pricing, excellent rental returns, and desirable location. It offers some of the best investments in the UAE. The average price per square foot (PSF) and rental yields will continue to rise as long as JVC continues to be a popular destination for ex-pats because of the number of schools, parks, and exercise facilities.
Put time and effort if you consider house flipping.
You can buy a house that is not in good condition, flip it, and then sell it for a better price. Of course, flipping a house can be a good idea, but you must study the abovementioned factors.
Those types of investment include non-residential investment, as the name indicates. To further understand what we mean by those, here are some examples: Hotels, warehouses, offices, and retail establishments. Like residential real estate, you can increase your income flow by collecting rent or selling the property when its value increases.
Although investing in commercial real estate offers better returns, managing commercial buildings can be challenging. Therefore, investors who can only tolerate low to medium risk frequently choose residential real estate investment. While those who can accept a higher rate go for the commercial investment.
Real Estate Investment Groups
Suppose you want to profit from rental real estate without owning the responsibilities of landlords. In that case, this type is perfect for you. What happens is that companies typically buy or build a collection of apartment buildings, allowing investors to purchase them through the group called Real Estate Investment Trusts (REITS). The number of units a shareholder may possess is unrestricted in Dubai. In exchange for a portion of the monthly rent, the firm running the real estate investment group will simultaneously assume all landlord duties, including marketing, conducting tenant interviews, and managing maintenance. One advantage that ensures you get a high ROI with this method is that you get money even if your unit is empty for the time being.
See the list of top Real Estate Investment Trust agencies in Dubai.
Dubai, one of the cities with the most extraordinary population growth worldwide, has a booming economy, an unmatched property portfolio, and some of the best returns on real estate investment. It offers investors great opportunities, provided they study the market carefully and opt for what suits them the best. Have you ever invested in the real estate market in this city? You can tell us about your experience or any additional information you would like to add in the comment section down below.