Are you thinking of investing in the real estate market in Dubai?
You know what, decisions look smarter when you know the minimum budget needed. Concerning Dubai’s prime areas and emerging neighborhoods, your choice when it comes to property types and budget can play a big role in the diverse property types on offer.
Top Five Reasons to Invest in Dubai Real Estate
India’s real estate investors are flocking to one of the fastest-growing cities, Dubai, as a popular location. Multiple factors have led to this phenomenon. Here we outline five motivations motivating Indians to invest in Dubai real estate investment.
Attractive Rental Yields
One of the key draws for Indian investors to Dubai are its impressive rental yields, which offer better rental returns than Indian cities such as Mumbai and Delhi. Real estate investors can earn a 5-7% rental yield here; plus rental rates remain steady over time.
Tax-Free Investment
One key element influencing Indian real estate investment in Dubai is its tax-free environment. Real estate investors find Dubai alluring due to the lack of income, capital gains and property taxes in this city – meaning investors can keep more of their rental revenue without incurring tax repercussions when selling homes.
Strong Economic Growth
Dubai stands out as an attractive location for real estate investment due to its robust economic growth. Industries such as tourism, real estate, trade and logistics contribute significantly to Dubai’s expansion. Real estate demand among both commercial and residential sectors has increased, making now an excellent time to enter its market.
Reasonable Property Prices
Dubai property costs are considerably lower when compared with those of major cities like London or New York, making them an attractive investment choice for middle-class Indian investors looking for high returns with secure investments. Furthermore, Dubai government has introduced various programs designed to encourage real estate investing such as providing resident visas.
Quality Infrastructure
Indian investors are drawn to Dubai’s real estate sector due to its top-of-the-line infrastructure, with cutting-edge medical facilities, sophisticated airports and efficient public transit networks all on offer. Furthermore, due to Dubai’s real estate market regulation and transparency investors can feel assured in their investments.
Minimum Budget for Different Property Types
- Apartments: While entry-level apartments — in key areas such as in Jumeirah Village Circle (JVC) and Dubai Marina — will start from around AED 450,000 for a studio and one-bedroom units price above AED 650,000. Studio apartments for sale in Discovery Gardens are available from AED 440,000.
- Villas and Townhouses: If you’re searching for villas, then places such as Damac Hills and Arabian Ranches are popular communities with villas starting from AED 1.5M. The areas in which these lead residential lay are well known for their spacious setting and family friendly environments.
- Commercial Properties: Smaller units in emerging areas such as Business Bay and JLT come in for offices or retail spaces at a budget of AED 600,000 or more.
Factors affecting budget
- Location: Properties in prime parts of Dubai like Downtown Dubai will fetch higher prices but properties in the upcoming areas such as Town Square or Dubai South will be cheap.
- Property Size and Type: The most affordable are studio apartments, which steadily increase in price from two up to three bedrooms, depending on size and location.
- Developer and Project Status: Low cost, flexible payment plans- that’s what the off-plan properties come with. They usually have lower prices as well as easy payment plans. However, ready-to-move-in units will involve higher upfront costs.
Financing and Payment Plans
- Down Payments: As a rule, foreign investors usually need to pay a 20-25 percent down payment.
- Mortgage Options: Depending on the buyer’s profile, loan to value ratios of 80% are available.
- Developer Payment Plans: Most developers have flexible plans where you can pay on an installment basis, making off plan purchase much easier.
Conclusion
Dubai’s real estate is an interesting entity to invest in. However you really need to put some thought into it. So whether you’re eyeing an apartment or villa, you’ll not only need to know ‘what and how’, but also ‘how much’ it will cost and how to actually get it when you’ve settled on your preferred property!
