No Comments

Dubai apartment for investment

Dubai apartment for investment should be chosen wisely. Investment in real estate does not bring fast results or profit. It is a long-term project which has to be planned and executed properly for maximum return on investments. Before considering any kind of a real estate investment you should get knowledgeable about the current situation of Dubai real estate market.

Getting ready for the upcoming Expo 2020, numerous Dubai real estate developers started launching projects. As it is expected that more than 30 million people will be visiting Dubai during the period of Expo 2020 (October 2020 – April 2021), majority of developers planned to hand over their projects before the end of 2021. Due to high projected supply and lower demand, Dubai real estate market faced price decline. Nevertheless, Dubai real estate market will pick up in the next 1-2 years. That is why it is important to invest in Dubai apartment, now.


Dubai apartment for investment and best location

It is not that difficult to find suitable Dubai apartment for investment. Everything depends on your end goal (end user or investor) and the location itself. If you want to go for Dubai apartment for investment as an end user, you should consider such locations as downtown and Jumeirah. Nevertheless, if your end goal is to gain profit as an investor, you should check Discovery Gardens, JVC, Motor City, etc.


Dubai Marina 

Dubai Marina is a home for many European expats. One of the main reasons are relatively new area, water canal, and breathtaking towers. Up until now, Dubai Marina is one of the most popular areas when it comes to investment in apartments because it is located near business offices in Dubai Media City and Dubai Internet City. It serves as an attraction to many businesspeople, who prefer to be near their workplace and in a prestigious neighborhood that provides plentiful community amenities and the famous Dubai Marina Walk.


Business Bay 

Did you know that Business Bay has the second name? Being a well-known business hub, it is set to become the Manhattan of the emirate. Located in Dubai downtown, it attracts lots of investors due to numerous offices. This area will always be in demand, whether it is rent or purchase.


Al Barsha Heights 

Al Barsha Heights situates close to Media City which hosts multinational and Fortune 500 companies, which include BBC World, Microsoft, HP, CNN, Reuters, CNBC, Vodafone and more. It has numerous residential buildings suitable for anyone seeking to invest in Dubai. It is a top choice for visitors, because it is set in the heart of ‘New Dubai’ and considered a business hub. The perfect location makes it easily accessible from any other area in Dubai. Constant development gives endless opportunities for investment.


Dubai Sports City 

Dubai Sports City was launched in 2003 as Dubai’s sports center, hosting academies in golf, cricket, hockey, football, swimming, and rugby to name a few. Close to Dubai’s major roads, and only 15 minutes away from the much-anticipated Expo 2020 pavilion. It is a recommended choice for investors as millions of visitors are expected to arrive in Dubai for the Expo 2020.

Due to recent market conditions prices on properties went down for both off-plan and secondary markets. As developers started concentrating on more affordable units for end users and investors (studio, 1-,2-bedroom) people started moving from big apartments into smaller ones. Owning became easier than renting. Dubai Sports City is still a young area which is developing rapidly. Due to its popularity and growth, it is one of the most attractive areas when it comes to investments.


Jumeirah Village Circle (JVC)

Considered as one of the fastest growing locations in Dubai, the Jumeirah Village Circle (JVC) has a good location when it comes to nearby areas and easy accessibility. It is also a short drive from the Expo 2020 pavilion and Dubai’s major business attractions. In the first three quarters of 2015, it was ranked the 2nd highest for move-in rates in Dubai. It is just 20-minutes away from the Al Maktoum International Airport. According to Bureau International des Expositions, Expo 2020 will be attracting millions of visitors. JVC’s central location is expected to increase demand for hotel rooms during Expo 2020 which will boost investment in Dubai. Another advantage is that rent will grow in the coming 24-36 months as the market improves. In terms of yield, properties offer between 15%–20% more space comparing to The Springs, and around 15%–20% cheaper to purchase.


Dubai apartment for investment and the best ROI 

When it comes to Dubai apartment for investment, ROI is the major deal maker. Each Dubai area has a different ROI. Depending on what you are looking for and what is the end goal you can choose a suitable location.

According to the research, conducted by Bayut, there are 10 locations in Dubai which can be considered as a profitable investment option, for Dubai apartment investors. According to the obtained results, we can shortlist the following areas:

  1. Dubai Marina – 6.4%
  2. Downtown Dubai – 5.4%
  3. International City – 9.7%
  4. JVC – 6.7%
  5. Palm Jumeirah – 5.3%
  6. JLT – 7.7%
  7. Dubai Silicon Oasis – 7.6%
  8. Dubai Sports City – 7.9%
  9. JBR – 6.3%
  10. Business Bay – 6.4%

Dubai Marina and Dubai Downtown still hold their position strong as one of the most attractive places to invest in. Taking into consideration current market trends International City, Dubai Sports City, Dubai Silicon Oasis and Motor City are among top preferences when it comes to real estate investments.

International City, on the other side, is the 3rd-most searched area for apartment sales in Dubai. Prices for studios stays the same, comparing to 2018. Nevertheless, for those who want to invest with more profit, 2BR apartments in International City is the answer. Prices have risen by 1.4%, increasing from AED 690,000 to AED 700,000 in the first quarter of 2019. A similar trend has also been noticed in other affordable areas like Dubai Sports City, where 2BR units have seen prices jump by 3%.

While property prices in Dubai have decreased over the last quarter, the changes have been modest. Dubai apartment for investment stays the most profitable asset, comparing to villas and townhouses. Current Dubai real estates market conditions such as price decline, oversupply and people’s shift towards new Dubai areas remain investment even more profitable. Taking into consideration Expo 2020 and the expected a rush of tenants Dubai apartment stays a hunk of burning.

Invest in Dubai apartments with Universal Prime Real Estate. Contact one of our property advisors for more information on which location to choose for future investments.


No Comments

Investment in Dubai property market

Investment in Dubai property market can be considered as one of the most profitable investments, in UAE. But what exactly makes it so special and worth considering? Investment in Dubai property market became more attractive due to the decline in property price.


Market Cycle 

Among one of the reasons is that Dubai property market is going through a 7-year cycle. Like every market, Dubai property market has to go through booming, recession and slump phases. It was booming few years back. Now is the time for the slump. This business cycle is typical for every industry which brings lots of improvements, as a result.



The second reason for Dubai property market to decline is property oversupply. Due to the upcoming Expo 2020, Dubai developers started launching numerous real estate projects. It led to Dubai property price to drop for both off-plan and secondary markets. In order to stabilize the situation and slow down price decline, numerous measurements took place from the developer’s and government’s sides. Developers slowed down development in order not to oversupply the market and keep prices relatively stable. Government, from their side, implemented rules and regulations which benefit Dubai property market investors such as 5-, 10-years residency visa and 100% foreign ownership. All these changes worked positively for Dubai property market. It led to slowing down price decline and attracting more investors to the city.


Dubai real estate market trends 

For a very long period of time, Dubai was popular for its luxury apartments and villas, attracting thousands of investors from all over the world. Nevertheless, starting from 2016 Dubai property market’s trends have shifted. Due to constant population growth, mainly through labor flows, the citizenry of Dubai increases each year. Majority of these people are middle-class workers whose main objective is to earn money. The vast majority of them are single, couples or young families. A new strategy towards affordable housing was implemented, in order to keep people in the country and to ease their life.


Dubai property market strategy 

Dubai property market is shifting towards the mid-market segment and smaller units. This is where the real demand is picking up. Developers started focusing more on smaller and affordable units, specifically to satisfy the needs of a middle class. Three-bedroom apartments and villas were substituted by more affordable studios and 1-, 2-bedroom apartments. Proportionately, it led to an increase in ROI. While investing in a smaller apartment investor will get higher ROI, comparing to investment in bigger apartments or villas. This factor is the key when it comes to investment in Dubai property market.


Which property to choose to invest in? 

If you are an investor and interested in getting high ROI, you should consider investing in smaller units. Investments in a studio or 1-bedroom apartment can bring up to 10% – 12% ROI, depending on the location. These are the type of units in demand. Taking into consideration the upcoming Expo 2020 (with more than 30 million visitors) Dubai developers will continue implementing this strategy and focus on more affordable housing.


Choose your location 

According to numerous market studies, when it comes to investments, Dubai property market experts highlight 3 main areas:

  • Discovery Gardens;
  • Jumeirah Lake Towers and Dubai Marina;
  • Jumeirah Village Circle.


Discovery Gardens 

One of the main advantages is that Discovery Gardens consists of multi-sized apartments. It is possible to get a studio in Discovery Gardens and pay all needed bills for less than USD 100,000. Gross rent of 11%-12% can be achieved with a net rent of 8%. Apartments in such locations will attract expat workers. By trying to save they move as far as possible from Dubai downtown. Apartments will surely be in demand, in Discovery Gardens.


Jumeirah Lake Towers and Dubai Marina 

Property prices in Dubai Marina and JLT differ between developers. There is also a great difference in the quality of units. You can find larger apartments but with poor quality and smaller apartment (for the same price) with better finishing. The first step is to find the right building rather than a developer. Some developers and buildings vary in quality and price point. The key here is to go for quality over quantity. Less square footage but to a higher spec may be a better proposition than the reverse.


Jumeirah Village Circle 

JVC is a perfect location when larger investments are considered, such as a 3-bedroom apartment. The main reason is that multiple demand points can be covered. People in larger villas or townhouses who want to downsize due to budget constraints will get attracted to this area. Also, people in larger units downsizing as they want to save, and people in smaller units with a growing family. Another advantage is that rent (in this area) will grow in the coming 24-36 months as the market improves. In terms of yield, on average properties in the JVC development offers between 15%–20% more space than those in The Springs and around 15%–20% cheaper to purchase.

Even those looking for a larger living space in Dubai still seek out value for money. This hunt for cheaper living in the heart of the city will drive more and more renters to developments like JVC, Dubai Marina and Discovery Gardens increasing demand and keeping rental yields healthy.

If you are looking for a great investment opportunity, would like to get high ROI – contact one of our property advisors. Universal Prime Real Estate team of experts will have answers to all of your questions.