Top dubai destinations to invest in
Dubai has been a popular destination to buy property in for several years now, but the market has evolved over time and it now looks a lot different compared to how it was during the economic boom. While the sector is faring extremely well and has managed to ride the financial crisis, there is now a focus on specific areas of Dubai, with these destinations driving the real estate market in the United Arab Emirates (UAE) forward.
For a guide on where to purchase property in Dubai, read on:
Dubai Marina
One of the most up and coming destinations in the city is Dubai Marina, which has seen consistently high prices as a result of its beautiful beach views and having its own self-contained community. According to research from Asteco and CBRE, sale prices increased by 7.5% between Q2 2011 and Q2 2012, rising from AED 10,000 (£1,795) per sq m to AED 10,750 during this 12-month period.
Figures from The Move Channel also demonstrate the growing popularity of this part of the city, with the area accounting for 27.89% of all searches regarding UAE property in 2012.
So popular is this man-made locale that huge towers are often being developed here and Dubai Marina now has a majority of Western European residents living in the area.
Palm Jumeirah
If you’re considering purchasing real estate in Dubai, Palm Jumeirah is another area that could be particularly profitable for you. This artificial archipelago of islands definitely has an iconic appearance, which attracts residents and investors alike.
Asteco Property Management recently revealed Palm Jumeirah experienced the largest increase in apartment sale prices in the last three months of 2012, rising by 27%. At the end of the year, prices were AED 15,100 per sq m. Rents also grew during this period in this area, increasing by 17% in 2012.
Jumeirah Islands
Investors looking to purchase villas might be more interested in buying somewhere on the Jumeirah Islands. According to Asetco/CBRE, rates for these units here increased by 10% year-on-year between Q2 2011 and 2012. Prices rose to AED 10,750 per sq m during this period.
All three of these locations have excellent facilities, beautiful views and lots of leisure and retail amenities for residents, making them particularly appealing for tenants, which means rooms will stay continuously full. Therefore, investors can enjoy a regular rental income and can confidently raise prices, knowing there will still be a demand for their properties at a higher fee in these areas.
Other areas…
Other destinations that are definitely worth considering for their high rental yields and investment opportunities include Dubai International City, Dubai Waterfront and Dubai Sports City.
Of course, the great thing about Dubai is that new developments and areas are being constructed all the time, so if you really want to make a good profit, you should make an effort to keep an eye on the latest projects – by investing in an area while it is up and coming, you’re set to make a tidy return whether you resell it or rent it out in the future.
About the Author
Natasha Al-Atassi is a property investment writer for Select Property, collating the latest news about Dubai property investment opportunities, as well as updates on the Select Property brand and information to help investors interested in buying real estate.