Investors favour Dubai properties at specific price points

As per the latest reports, investors are keener on snapping up Dubai real estate properties which are priced at roughly AED 1.5 million or approximately $408, 000. In this price range, there are several properties in Dubai which have enthused investors with their propensity towards delivering yields (gross) between 7-9% across some parts of the Emirate according to reports. Experts also feel that this is a price range where there is ample long-term value creation for investors.

There is high market activity for segments like one bedroom, studio, two bedroom and three bedroom apartments in this price range. This is currently the most thriving price point in the Dubai realty sector. One or two bedroom apartments at this price point in well-known and reputed locations are witnessing the highest demand from end-users and investors alike. This is also a major attraction for prospective clients who do not wish to pay rentals any longer and want to buy their own homes.

Several families looking to buy homes are also looking at properties which are priced lower than AED 1.5 million as per reports. 7-9% gross yields can be expected from these mid-range properties and there are handsome profits even after accounting for service charges, interest payments and overall maintenance costs. Residential real estate prices have already come down by roughly 20% since the market last peaked in 2014 and this has already drawn several global investors, buoyed by the lower prices and chance to snap up prime residential property at lower rates. The market could still see nominal price declines over the next year or so as per reports.

However, with new regulations, there will be a flurry of buying activity from expatriates in Dubai and this could shore up property prices once again as per experts. However, the market is at a mature stage now with lower levels of volatility overall. Demand will go up hugely for real estate throughout Dubai with the new visa laws and other reforms. Several real estate developers are also coming up with enticing payment plans in order to clear out inventory faster. There are more choices available for buyers in the entry-level to mid-range space as a result.