Dubai has evolved into one of the most dynamic cities in the world and has become one of the most popular travel destinations in recent years, which makes owning a rental property in the city a highly lucrative venture. Plans are already afoot for Dubai to become the world’s smartest city in 2021, and the most visited city on the planet by 2025. The combination of these aims, and the innovative planning spearheaded by a government always thinking of expansive new developments creates a world of opportunities for expat investors looking to dip into this market.
Ever since the global Covid-19 outbreak has brought the world largely to a standstill, Dubai has managed to contain the spread of the virus and maintain continuity of business and education that has kept the economy moving, and life somewhat normal. With the rapid introduction of a Covid vaccine, it continues to inspire positive outlooks for future investors.
As such, here are 3 key reasons why so many investors have been focusing on rental properties in Dubai over the last couple of years, and why the trend will continue on an upward trajectory as we move ahead.
Being one of the fastest growing cities in the world, Dubai is the perfect place to invest when considering your best options for long term financial returns. The rental yields on properties in the city, compared to other major global markets is unrivalled. On average, investors in Dubai can expect to achieve a gross rental yield of between 5-9%, with an average return of 7%. This stacks up favourably when comparing with the average rental yields in London (2.9%), Hong Kong (2.3%), Sydney and Singapore (both 2.8%) as per a recent Property Finder Report.
Year on year, Select Group properties continue to generate one of the highest rental yields in Dubai Marina, and buying directly from a developer will help you cut any additional charges associated with buying through a third party, and afford you the chance to maximize your investment even further.
Over the last 30 years Dubai has experienced remarkable growth, with a population surge of 569%. The regular introduction of new initiatives and forward-thinking policies has attracted visitors and residents from the world over throughout the years. In recent times, the introduction of new residency, investor and remote-working programmes as well the new 5-year visa which allows for post-retirement living in the UAE is making the city more and more accessible in a wider range of ways for investors and residents alike.
When taking these factors in consideration, not to mention the hosting of Expo 2021 later this year, which will see millions of people passing through the Emirate, population numbers and the need for quality, affordable and profitable home ownership is set to increase.
Dubai Marina continues to hold the title as one of the most sought-after residential communities in the city. Given the prime space it occupies, in close proximity to JBR, Bluewaters Island, as well as the Marina promenade itself, it will never lose its reputation as a dream living destination. The Marina always attracts expats who are looking to rent a property in the heart of Dubai’s most vibrant area. Be it long term annual rentals for residents, or a short-term holiday rentals – in what is fast becoming one of the world’s most popular tourist destination – units in the Marina are rarely available for very long.
Dubai Marina is known for a lifestyle that fits all interests, from families to couples or young and ambitious singles, to busy professionals or stay at home moms, there is a location for all. Coupled with the fact that Dubai is widely recognized as one of the saftest cities in the world, it is a destination that people will always want to look at, therefore turning any investment into an opportunity for immediate financial success.
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.