The boom in Dubai’s real estate market began in 2004, with a government decree allowing foreigners to own freehold and leasehold properties. In Dubai, freehold means owning the property outright, while leasehold means you own the property for a number of years.
Fifteen years later, Dubai has seen its market mature and attract many different kinds of buyers. Some foreigners buy apartments to live in them. Some buy properties for sale in Dubai as the return on investment is higher than what banks can offer. Others buy to have holiday homes in Dubai, a city of skyscrapers and wonders.
If you’re looking at apartments for sale in Dubai, here are some things to consider:
1. Are you looking to live in the apartment or buying it as an investment?
1.1. If you are looking for an apartment to live in, you should look at already-built or soon-to-be-ready apartments. First decide on your budget, the location you want to be in and start discussing financing options with your bank if you need a loan. Location is very important since it will depend on whether you are going for luxury apartments which are mainly located in areas like Emirates Hills, Palm Jumeirah, Dubai Marina, Downtown Dubai or more affordable apartments for sale in Dubai which are in Jumeirah Village Circle, Business Bay, MBR City (also known as Meydan area).
1.2. If you are looking at apartments for sale in Dubai as an investment, you should decide how much of a yearly return you want and if you want to make a premium on your property value over time. Calculate the rent of the apartments for sale in Dubai over the sales price of the same apartments to find out what your return on investment would be. For example, if an apartment is being rented for AED100,000 annually and the sale price is AED1,400,000, you are making a gross of 7% returns annually. For a net return, you would need to consider the service charges you pay to the developer, as well as any interest on your mortgage.
2. Short-term or long-term investment
If you are buying properties for sale in Dubai to invest then the next question is whether this is a short-term or long-term investment?
– A short-term investor should buy an apartment with quick annual returns. Look for either built or soon-to-be-built apartments in Dubai at desirable locations with high rents.
– Long-term investors want not only annual returns but also an increase in the value of their property. Look for property developers in UAE with plans for new locations that include infrastructure, retail outlets, tourist activities and more.
3. Choice of Property Developers in Dubai
While choosing a property developer in Dubai, ensure you do a thorough research about the best real estate companies in Dubai and then finalize on one that suits your requirements. Do they handover properties on time? Do they often face delays? Ask several real estate experts in the market. Also, what is the quality of their buildings? High-quality apartments in Dubai generate more rental income and mean you won’t be spending any additional money maintaining it. When looking for apartments for sale in Dubai, it is very important to know all the property developers in Dubai and educate yourself about them to identify who are the top real estate companies in UAE and then make your choice. There are numerous options of properties for sale in Dubai that can yield very high returns on your investment.
While there are other points to consider, these three points are key.
We at Ellington Properties can offer you a select range of products that can meet your needs depending on the location, budget and outcome you want from owning an apartment. If you are looking to buy downtown luxury apartments, then we can offer you DT1 apartments or RP Heights Dubai apartments located in the heart of Dubai and a walk away from Dubai Mall and Burj Khalifa. If you plan to stay close to the heart of Dubai but enjoy a more serene and quiet location, then we can offer you one of our apartments for sale in MBR City which is the new heart of Dubai where we have Wilton Terraces 1 and Wilton Terraces 2. However, if you wish to go for a more affordable location then our apartments for sale in Jumeirah Village Circle (JVC) is what you might consider such as Belgravia, Belgravia 2, Belgravia 3, Eaton Place JVC, Somerset Mews and many more.
Want to meet a real estate consultant to discuss your needs and goal? Please send us an email at [email protected]. We’re here to help you reach your goals.
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