How to make money in real estate in Dubai

Investment in real estate in Dubai

Many people are looking for ways to generate income from real estate in the emirate of Dubai, especially through the rental of hotel rooms and serviced apartments. Currently, the rental of apartments and villas is also in demand. The variety of rental property options attracts investors of different levels.

Growth of the rental housing market

Dubai is teeming with tourists, and the business environment is attractive for expats, which stimulates the growth of the rental housing market for both short and long-term leases. Investing in real estate for subsequent rental can prove to be highly effective.

Investments in hotel units

Investing in hotel units is a popular investment avenue in real estate in Dubai. The management of this type of property is usually handled by the hotels themselves, which makes it easier for owners to maintain the property and find tenants. Additionally, owners often receive the right to stay at the hotel for free for several days a year. When choosing, it is important to pay attention to the location, additional services, and amenities offered by the hotel.

Price example

• Studios in the Downtown and Business Bay neighborhoods are available starting at $500k
• Prices on Palm Jumeirah island start at 700 thousand dollars.

Equity participation

Acquiring a share in a unit allows for investment even with a limited budget. Certain developers may also offer a guaranteed buyback of the property.

Proposals from our company

Our company provides a variety of hotel unit options in different areas including Palm Jumeirah and The World Islands. Our specialists will assist you in selecting a property for your investment and its successful rental. investment and its successful rental utilization.

Popular areas for serviced apartments

Serviced apartments are particularly popular in the Business Bay and Dubai Marina areas, as well as near free trade zones such as Dubai Internet City and Knowledge Park. Prices for apartments in these areas start at $500,000 per unit and offer a wide selection of apartments, from studios to penthouses.

Variety of apartments in Business Bay

For example, in Business Bay, there is the Eywa residence with pools, relaxation areas, and waterfalls, as well as the Residence 110 with 110 apartments starting at $838,000. The high-rise Ahad Residences, set to be completed in 2023, offers 346 apartments starting at $3,294,000. Additionally, Business Bay has other residential complexes with public pools, cinemas, gyms, and communal spaces.

Long-term rental and amenities

Prime Gardens apartments in the Arjan area offer excellent conditions for long-term rentals. Long-term apartment rentals in Dubai are popular among foreign residents who prefer to rent rather than buy housing.

Amenities and requirements

Apartments in Dubai are usually offered with finishes, fitted kitchens and bathroom fixtures and fittings. The complexes also offer a variety of amenities including swimming pools, gyms, communal lounge areas and meeting rooms. co-working spaces with meeting rooms. When choosing accommodation in this diverse city, it is important to consider all wishes and requirements.

Popular housing options for rent in Dubai

Studios or one-bedroom apartments are a popular choice for single individuals working in business districts. For such tenants, convenient location and transportation accessibility are important. Preferred areas include Downtown, Dubai Marina, Meydan, and Dubai Creek Harbor.

Various options for apartments in Downtown Dubai

Apartments in Downtown Dubai offer a variety of options. This includes the new high-rise 25h Heimat residence with pools and mini-golf next to the Burj Khalifa and Dubai Mall, offering 26 listings from $659,000. J One Residence with gardens and restaurant in Downtown, which offers 257 apartments from $666,000. The luxury Baccarat Residences in the heart of Downtown, where prices start from $5,496 000. The new high-rise St Regis Residences with a conference center and infinity pools offers 232 apartments starting at $5,695,000. Society House residential complex with a terrace, rooftop bar and gardens with panoramic views of the city center offers 404 apartments from $586,000.

Apartments for families with children

There is also a high demand for 2-3 bedroom apartments for families with children. These families often choose affordable areas like Damac Hills and Jumeirah Village Circle, which are about a half-hour drive from the business districts. When selecting such rental apartments, it is important to pay attention to the availability of kindergartens and schools in the area, the accessibility of parks and playgrounds, as well as the noise level from nearby construction sites.

Various options for apartments in Damac Hills

The Damac Hills area offers a variety of apartment options. The premium Orchid residence with a pool and spa features 35 listings starting at $393,000. The new Bellavista residence, located near Palm Jumeirah and Dubai Marina, with parks and tennis courts, offers 34 apartments starting at $166,000. Modern apartments in the Golf Town complex, which includes a golf course, tennis courts, and a pool, have a total area of 39 m² and 1 bedroom starting at $586,000. A low-rise residential complex surrounded by lagoons and gardens in the picturesque green area of Damac Hills offers 162 apartments starting at $359,000. New apartments in the premium Golf Green residential complex, which boasts extensive infrastructure in the Damac Hills area, offer 1,881 apartments starting at $164,000.

The Damac Hills 2 residential complex is located in a green area of Dubai and is ready to offer everyone 920 apartments, with prices starting from $322,000. The project includes a swimming pool, gym, and cinema.

Villas in Dubai - luxurious housing in prestigious areasIt is important to note that not all villas are located directly by the sea; many of them offer comfortable living conditions, convenient infrastructure, and green areas.

Elite villas by the sea in Dubai

Among the elite villas by the sea, several truly luxurious options stand out. For example, a two-bedroom villa in the Umm Suqeim 3 area with two bathrooms, which may cost around $550,000. However, the most unique of them is a villa in the six-island residence of The World Islands, with an area of 2,136 m² and a land plot of 1,393 m², priced at $35,000,000. Another option is the high-rise residence Liv Lux, located just 500 meters from the sea in the Dubai Marina area, scheduled for completion in 2026, with prices starting from $2,950,000.

• Private villa on a private beach of 33,044 m² with a plot of land of 21,934 m², price $90,289 000.
• Luxury housing in The Residences complex near the yacht marina in the Business Bay area is valued at $23,103,000.

Prices and types of villas in Dubai

Prices for villas in Dubai are usually higher than for apartments. Prices start at one million dollars for a two- to three-bedroom villa in a good area. There are several types of rentals available, including hotel units, serviced apartments, rental apartments, and villas. Rentals of hotel units and serviced apartments are typically done through a hotel or management company.

Conclusion

Villas by the sea in Dubai are luxurious and prestigious residences, suitable for the most discerning clients. It is important to consider all aspects before purchasing such property to be confident in your choice and enjoy life in luxury by the bay.

Purchasing real estate in Dubai: guaranteed income

Investing in real estate in Dubai can be an attractive investment, especially if you view this step as a source of guaranteed income. However, it is important to remember that the high guaranteed return offered by the owner may already be factored into the price of the property. This means that by purchasing real estate, you may only recoup your own funds during the contract period, and after the guarantee period ends, the return may decrease.

Leaving a portion of the profit:It is important to consider that the hotel, while offering guaranteed yield, the hotel may take a portion of the profits for itself. For example, if the net yield is 12%, the hotel may retain 7% and pay the client only 5%. Therefore, it is extremely important to study the terms of the deal in detail.

Difficulties in reselling:

Ksenia Kolesnikova, the head of the sales department in Dubai, emphasizes that when purchasing real estate with guaranteed returns, the buyer may face difficulties when it comes to reselling the property later. The yield will remain at the level of the initial agreement, which may deter potential buyers.

Choice of surrender options:

• Developer's management company:It's a convenient option, but it comes with certain risks.
• Local realtors:They can help negotiate better terms.
• Independent search for tenants:Requires a time commitment, but can be effective.

When choosing a rental option for real estate in Dubai, it is important to be cautious, especially when it comes to long-term contracts. Finding a reliable agent can help avoid potential scams. It is essential to carefully weigh all options and risks to make an informed decision and avoid unpleasant surprises in the future.

Conclusion

Real estate rental in Dubairepresents an attractive opportunity for investors looking to earn stable income. The capital of the UAE attracts millions of tourists and expats, ensuring a constant demand for rental housing for both short-term and long-term stays.

The variety of rental property types, ranging from hotel units to serviced apartments and long-term rentals, allows investors to choose the best options according to their budget and needs. Favorable conditions for business and residence make Dubai an attractive place for profitable real estate investments. profitable real estate investments.

Having studied the diversity of the rental property market in Dubai, one can conclude that it is promising and attractive for investors looking to diversify their portfolio and ensure stable long-term income.