In the 6 months from January to June 2014, Openshore Property has seen a 31% increase in sales of low cost investment apartments under AED 600,000 (£100,000) to Dubai Property buyers from all over the world, compared with the same period last year. The increase has been driven by buyers from the Middle East.
Openshore Property have analysed sales data for the 6 months from January 2014 to June 2014 and compared it with the same period in 2013. The results have shown an overall 22% increase in total Dubai property sales with a large 31% increase in sales of low cost apartments in non-prime areas.
Dubai remains the most favoured place in the Middle East for investment property purchase by buyers from all over the world due to its desired location, high rental yields, and tax free status.
Prime Areas are seaside areas in Dubai such as the Palm, Dubai Marina and developments along Shiekh Zayed Road and the current Metro Line such as Jumeirah Lakes Towers, Business Bay and Burj Khalifa area. These are in demand from tourists and for own use by residents.
Non-Prime areas in Dubai are developments away from the sea and particularly along Emirates Road, stretching from the current Dubai Airport to the New Airport and including areas such as International City, Dubai Silicon Oasis, Sports City, Jumeirah Village and IMPZ.
The data showed that the biggest increase in sales were in the non-prime areas where property prices are lower and rental yields higher. Whilst sales to UK nationals were up, the biggest increase was in sales to investors from the Middle East, particularly Saudi Arabia.
Craig Hamill senior Consultant at Openshore Property explained “Relatively high Dubai property prices in prime areas near the sea is forcing investors to switch to non-prime areas inland, where prices are lower and net rental yields are higher. As our company focuses in these non-prime areas, we have seen a big increase in such sales. For the same budget of a 1-bed apartment in Dubai Marina, an investor can purchase 2 similar apartments inland with greater overall rent and more long-term flexibility.”
About Openshore Property
Openshore Property is a UK company that helps investors from all over the world purchase property in Dubai.
Sister company in the Group – Find UK Property provides similar investment properties in the UK whilst partner company Sandcastles, based in Dubai provides marketing and portal services to Dubai based estate agents.