Are you confused if Dubai is the best place to invest? Do you want a luxurious apartment or a cozy villa in Dubai? Are you scared of the negative return on investments? If such questions are popping up in your mind, then stop thinking too much and invest in the profitable real estate investments in the communities of Dubai. Don’t waste your time as now is a great opportunity to search for the best areas to invest in real estate in Dubai, and take advantages from the short term let Dubai, since the market has shifted in favor of landlords and buyers.
Dubai is a desirable location for holiday homes rental or short term vacation rental due to the country’s high rental yields and ROI. However, because of the Covid-19 outbreak, the market was affected greatly, with sales and rental prices being impacted by low demand and an excess supply. Therefore, landlords have had to deal with declining rents and reduced yields.
Rise of Short Term Rentals – Major Contributor to Dubai’s Rapid Development
Despite the outbreak, there are areas of the UAE that are succeeding against the odds. And now, since things have gotten much better, people who have been restricting themselves to their homes only are now coming out and enjoying their much-needed break. This eventually increased the demand for short term let.
There is still room for expansion in Dubai’s short term let renting sector as the average daily rates have increased between 15 to 28% and monthly rates are rising to 94%. Short term rentals in Dubai have helped propel Dubai into the global “top 5 most visited cities.” Many people are now considering making Dubai their vacation destination in the years leading up to the 2022 FIFA World Cup, which will be held in Qatar. Compared to a year ago, rentals in Qatar have climbed by 30 percent, making Dubai’s holiday homes market set for long term growth.
When it comes to purchasing real estate in Dubai, Dubai Marina is by far the most sought-after community for short term let. It’s in a beautiful waterfront setting, and it’s loaded with amenities and fun things to do. Luxurious high-rise apartment complexes and holiday homes rental can be found in several locations across Dubai Marina as the short term let is the best way to rent property out in Dubai. Dubai property buyers have a longstanding love affair with the area because of its plethora of shops and restaurants. Even Emaar’s long-term commitment to the area, the Bluewaters Island development, attests to the area’s enduring appeal.
- Apartments in Dubai Marina have a return on investment of 5.80%.
- Studio apartments in Dubai Marina are generally around AED 754k.
- Price per sq ft for a one-bedroom apartment is AED 1.2M, two-bedroom apartment is AED 1.8M, 3-bedroom apartment is around AED 3M.
Downtown Dubai, often known as the “centre of now,” is where you’ll find iconic attractions like the Burj Khalifa, The Dubai Mall, and Souk Al Bahar. In the heart of Downtown, you’ll find luxury high-rise apartments, while Old Town is home to more charming options along with many other options for short term vacation rental. With one of the world’s top tourist sites right in the area, the area’s allure is definitely here to stay. The high standard of living seen in Downtown Dubai is something to be desired. Apartments in Downtown Dubai are more expensive than average, but the strong secondary market makes up for it.
- Apartments in Downtown Dubai have a return on investment of 5.18%.
- Price per sq ft for a one-bedroom apartment is AED 1.5M, two-bedroom apartment is AED 3M, 3-bedroom apartment is around AED 4.9M.
Jumeirah Lake Towers
If we get into the nitty gritty of Dubai real estate investments, Jumeirah Lake Towers is another area to think about if you’re set on purchasing properties in the city with great short term let offers. Investing in JLT apartments is a smart move for anyone looking for reasonably priced Dubai real estate. Just across from Dubai Marina, where the most opulent residences are found, is where you’ll find the JLT high-rise residences. It’s the best investment in Dubai for the money because it provides the same services at a lower price. All sorts of restaurants, pubs, and leisure centers (including spas, pools, and fitness centers) are available to locals.
- Apartments in Jumeirah Lake Towers have a return on investment of 6.82%.
- Studio apartments in Jumeirah Lake Towers are generally around AED 451k.
- Price per sq ft for a one-bedroom apartment is AED 822k, two-bedroom apartment is AED 1.3M, 3-bedroom apartment is around AED 1.5M.
Dubai Silicon Oasis
The Dubai Silicon Oasis is a prime real estate market. Investors and first-time homebuyers drawn to the area’s low prices on apartments for sale in Dubai find it to be an attractive option. Dubai Silicon Oasis is a desirable area due to the abundance of accessible business spaces and other attractions, like parks, restaurants, schools, and medical facilities. After its inception as a center for tech startups, DSO rapidly expanded into a lively residential area. Dubai Silicon Oasis offers a wide variety of rental housing for prospective residents. Dubai Silicon Oasis offers a wide selection of apartment sizes, from cozy studios to spacious three-bedroom options. Because of this, it’s perfect for anyone living there, from working adults to growing families.
- Apartments in Dubai Silicon Oasis have a return on investment of 6.82%.
- Studio apartments in Dubai Silicon Oasis are generally around AED 327k.
- Price per sq ft for a one-bedroom apartment is AED 473k, two-bedroom apartment is AED 801k, 3-bedroom apartment is around AED 1.1M.
Investing in real estate in International City, Dubai is yet another great choice for short term let. For those looking for a cheap apartment or holiday homes rental in Dubai, this is a great place to invest. It features country-themed clusters of buildings, making it a “International City”. The area is well-known for its one-of-a-kind building style. Various neighborhoods and shopping centers in International City are themed after individual countries. The initial phase of the community consists of the country-inspired individual districts, like the China District, England District, France District, Greece District, Spain District, etc.
- Apartments in International City have a return on investment of 7.52%.
- Price per sq ft for a one-bedroom apartment is AED 415k, two-bedroom apartment is AED 905k, 3-bedroom apartment is around AED 1.2M.
Dubai’s Short Term Let is Bustling
The rental market in Dubai’s most successful communities is bustling. As a result of the city’s popularity as a tourist destination and the high demand for rental properties, Dubai has experienced rapid growth. In conclusion, the short-term rental industry in Dubai is anticipated to expand rapidly in the next years. Both investors and homebuyers should take advantage of the current market conditions to purchase real estate in Dubai.