Based on today’s market you would be looking to earn between 4-7% depending on the type of apartment you choose and where its located. Premium, waterfront residential units in Dubai Marina will typically yield around 5 to 6% in rental returns on longer term rental agreements. Units that are available for short term, holiday rentals can earn an even higher return.
According to a report from Property Finder last year, Dubai is one of the most lucrative cities in the world to currently invest in. With an average ROI of 5 to 6% in key waterfront areas, this is double the average ROI in many major cities including London, Singapore, Hong Kong, Sydney and Toronto. All of which hover around the 3% mark in terms of ROI.
The down payment can vary from project to project, in most cases you will be required to provide a “token fee” in order to hold your chosen unit before the first fee is due. This payment can start from as a little as AED 20,000. Once the token payment is confirmed, the next cost can be as little as 5% of the overall unit purchase price.
Standard service charges cost approximately 14 to 16 AED per sqft. External areas are charged 25% of this price, with internal areas 100%. Depending on individual building policies, there could also be additional chiller fees factored in as an additional cost.
Any unit can be placed on the secondary market once 30% of the unit cost has been paid over to the developer.
You will be covered under warranty for 12 months from the date at which the building is completed and handed over to the owners association.
Shared facilities with vary from project to project. Some projects place a very heavy focus in guaranteeing residents have access to the widest array of health & fitness facilities such as squash courts, basketball courts, outdoor gym areas, children’s play areas, spacious communal terraces and even padel courts. Furthermore, residents can expect fully functioning saunas, steam rooms and strategically positioned swimming pools in all the upper end projects.
From an investment perspective, studio and one-bedroom units are typically favoured. They tend to offer the best ROI and are always in heavy demand within the rental communities. Two- and three-bedroom units tend to be more popular with family focused purchasers, with a higher proportion of these clients ultimately living in these units themselves over the long term.
Allocations for parking spaces are always carefully considered and, in most cases, additional spots are not available. However, in certain cases depending on the project size and the overall availability, it may be possible but is handled on a case by case basis.
It is very easy to finance the purchase of a property in Dubai. Mortgages and loans can be sourced easily from banks and financial institutions, while scheduled payment plans can be utilized on certain projects to make it easier for the buyer up front.
Yes, most of the buildings you will encounter are pet friendly in nature.
No, exteriors are cleaned regularly by the building management, this process is usually completed every 6 months.
Georges joined Select Group as Commercial Director in 2020. He has over 18 years’ experience in destination management and expert knowledge across an array of industries including hospitality, tourism and MICE. He has a deep understanding of the GCC, and the buying behavior of the international visitors to the region.