Reasons for Buying a Dubai Property
We often get asked to state the reasons why people purchase property in Dubai. Wherever, we discuss a property sale with a potential client, we always ask them to decide on the aims of their purchase and proceed accordingly – see below.
a. Buying for Investment
Most purchases are for pure investment and the property is never used by the owner. It remains rented out. The aim is to get maximum net rental income and capital growth whilst acquiring a property that will be easy to resell in the future. In such a case, the smaller and lower cost properties provide the best investment returns and these are the properties we recommend. If you have a larger budget – buy multiple lower cost properties rather than one expensive property.
Over 90% purchase a low cost (Studio or 1-bed) investment property. A good example is like our best seller 1-bed property – details of which are attached (1-Bed from £45.1k). Full price is AED 359K and rental income can pay for 25% of the property – so customers would end up paying about AED 271,000 (about £45,167) themselves. These offer about 8% net rental yield and come with rental guarantees. We would recommend such properties as the best for low risk investment.