The Dubai Property investment property market boom started around 2001-2002 periods. Prior to that Dubai government didn’t want non-citizens to “own” Dubai properties. Therefore Dubai property investment did not exist for non-citizens. In 2008 with the doubling of oil price and investors loosing so much money in Europe or North America, they have been forced to switch to Oil Rich estates for investments that can ensure Positive growth for the foreseeable future.
However, Dubai government introduced new regulations for investors all around the world to invest in Dubai properties. Today Dubai property investment has become the “hot topic” among property investors.
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In most of UAE you can own your own properties specially in Dubai?
However, the locations are limited. There are limited number of places in Dubai where you can purchase and own the property. All other purchases are a long lease (normally 99 years renewable). You are the “owner” of the property during this period and you are allowed to sell or rent the property to someone else.
Selecting the best investment properties in Dubai?
This is the tricky area in Dubai property investment. The best investment property should match with your budget. Also you should be able to find a tenant fast. Here are some guidelines to decide the best area and type of property for you. Click here to see some of Dubai property photos
First lets look at types of people who are currently renting. Most of the tenants are expatriates who are working in Dubai. They have various incomes. The income decides what type of a property they are going to rent.
Majority of expatriates earns around 1000 GBP - 5,000 GBP a month. Normally they rent one-bedroom apartments. In my view this is the type of property you will be able to find a tenant very quickly. However, you should buy a property in a location where they can afford to pay the rent and in an area where most of the offices are located.
The second category is mid to high-income earners who are earning around $7000 - $10000 a month. These tenants are usually small in number, however are willing to pay a higher rent. There is a big chance that these types of people are receiving a rent allowance from the employer. They will be looking for semi-luxury apartments with facilities such as swimming pools, gym, tennis courts etc. If this is your target market then you will definitely receive much higher rent. The drawback of this type is the small market.
The third category is ultra rich and famous people around the world who are willing to “throw” money. If you want to cater for this category, then search for luxury apartments, villas and properties in Dubai islands. These people will not rent. They have money to pay cash and buy. So your only option is to buy a property in a unique location and sell it for a profit. Buying investment properties for this category can be a very high investment. However, the return will be equally high.