Where to invest in Dubai right now?

Over the course of the last week, propertyfinder.ae has been releasing extensive reports covering the current property market trends, especially those concerning real estate investments in Dubai. But where should one invest in Dubai right now? We bring you advice from the industry’s leading experts.

Buying to sell or buying to lease?

When it comes to choosing where to buy your property, future buyers have the following options:

Buying to sell:

Focus on Expo’s 2020 location

Investors should take note of Expo’s location, according to Mr. Volpi from Asteco. The strategic location of Expo 2020 gives investors a chance to put their money in neighboring communities such as Dubai Investment Park, and areas adjacent to Al Maktoum International Airport. With a focus on Expo 2020, investors have an option to either invest in hospitality, which will boom during the conference, or to resell the property at a higher rate. Apartments in Dubai Investment Park are priced as low as 285,000AED, and this number will only go up as we come closer to Expo.

Buying to lease:

Invest in affordable areas

For investors looking to buy properties in order to lease them to tenants, a number of factors should be considered, such as rental yields and return on investment.

Search trends on propertyfinder.ae show that an increasing number of tenants are moving away from central areas into more affordable neighborhoods. People are leaving areas premium and mid-income areas such as Downtown, The Palm, Dubai Marina, The Greens, for Discovery Gardens, Dubai Silicon Oasis or JVC (graphs below).

Rental yields in affordable areas (propertyfinder.ae)

Rental yields in premium areas (propertyfinder.ae)

Rental Yields in mid-income areas (propertyfinder.ae)

This means that buying property in the below areas is a good choice in terms of rental yields and return on investment.

The case of Palm Jumeirah

When it comes to villa investments, The Palm Jumeirah remains a favourite among first-time buyers. The area is also amongst the most popular residential areas when it comes to villa inquiries, as the graph below from last quarter’s report shows. This, along with the area’s stable value, offer investors opportunities to either buy in The Palm Jumeirah to lease or to resell.