What's Happening In The Dubai Property Market.

Many clients come to us as brokers and ask where is the best location to buy now and what areas will see  growth in the future? Answering this question all depends on what you want from your investment, Will you be living in the unit long term? Are you looking for rental returns or solely capital appreciation? Your answer will depict the area that your real estate professional will advise you on. Let’s take a look at the 3 different options…  If you’re looking at moving in now, you should be looking for established areas, areas with no/little  construction and full facilities like schools and shops in the vicinity. For villas, my advice would be the  Emirates Living area. Developments like Jumeirah Islands,  Meadows and Arabian Ranches.  These 3 areas give a wide range of value starting from 3 million ranging up to 20 million.  All facilities are already in place and residents have been living there happily for years already.  Areas like these which are fully established will always be very popular with  buyers as the areas hold their value well, even in a depression, it’s these established areas that hold  their value the best and recover quickest.  If you’re looking for something a little newer but still close to these established developments, areas like  Jumeirah Park which are already inhabited and having the final touches added can offer a slightly more  modern unit but still in good locations and access to local facilities. For apartments we’d always suggest the  Marina and Downtown Dubai and if possible, specifically Emaar, Select or Trident units.  These 3 developers have multiple towers in the mentioned areas and again are very popular with  additional advantages in great locations, property standards are high quality and they will always have  interest from a resale perspective.    If your solely looking for rental returns and giving yourself a good yield, then apartments is the best option.  A good yield in the current market is around 7% net. It’s worth noting that many agents will talk about gross  yields, but this does not accurately depict your investment. To accurately calculate your investment you need to  know the rentals and all cost Service charge, chiller etc. One unit may have a higher gross yield than another  butbecause the service charges are much lower in the other it may give the better net return. Areas in Dubai  consistently giving good gross and net returns are The Greens and Views and Motor City. Some newer areas  giving great returns are Sports City and RemRaam. In general, Studios and  1 beds tend to rent faster and  provide the best returns. They also sell much quicker when looking at resale in the future.    If you’re looking for Capital Appreciation then the best area to buy is Off Plan property. Off Plan units are  making a strong comeback now. Areas like Arabian Ranches 2, Mira, Sports City and down near  Dubai World Central Airport are seeing huge growth. These off plan units offer buyers to purchase villas  usually ready 2-3 years after launch at prices per sq ft well below what they currently trade for.  A good example is a 4 bed villa in Mira for just 2.3 million, when you compare this to something  similar in an established development like the Springs, these would cost 3.5 – 4 million. Another positive  factor for Off Plan purchases is the ability to be able to pay in installments over two years and spread the  payments out in a similar way you would to a mortgage. Clients have reported making between 30-100%  returns through off plan investments. One key note to remember when purchasing any property in Dubai that many people forget is to also look at  your exit strategy. We always find out if clients have an exit strategy. How long do they want their money tied  up? Will their strategy change in a few years? For a good property specialist to offer the best advice to you,  they will need to know what you as a client want now and in the future and not just advise you when to buy,  but also when to sell and then where and when to reinvest after. For more on investment in Dubai please Contact me on edithmakena@gmail.com