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Where can Expats buy a Property in Dubai?

Monday, October 08, 2018

For an expat currently living in the UAE, Dubai law states that you can purchase:

  • A leasehold property
  • A freehold property in one of the 23 freehold areas that include Al Barsha South, Emirates Hills, Jebel Ali, Sheikh Zayed Road, Dubai Marina, and Palm Jumeirah.

Investors who are genuinely planning to own a property in the UAE would do well to invest their money in Ajman. This is because this way they can look for great returns every year. The emirate usually offers one of the highest rental yields in the world, pegged at 9.6 percent per annum between April and October 2017.

Ajman forms the UAE’s smallest emirate located north of Sharjah. Thus, commuters who live there can reach Dubai in just under an hour. This, of course, depends on traffic. When it comes to rental income, Ajman tops the list. Here, the yields are around 2.9 percent.

Keep in mind that the rental yield is one of the major factors that would-be property owners take into account at the time of deciding whether or not a flat or villa is worth the investment.

A studio bought in Ajman for just a little over Dh300,000 might provide the landlord a yearly gross income of approximately Dh29,000. The net rental yield might be lower if other expenses, like landlord insurance, property management fee, among many others, are included in the calculation.

Property prices in Ajman are the most affordable in the UAE. Here, the asking prices average just Dh30 per square foot for apartments.

Places where expats can buy a property in Dubai:

Jumeirah Lake Towers

JLT consistently come on of top most profitable communities, as far as rental yields are concerned. The average rental returns for landlords currently stand at 7.5% per annum, although JLT studios rented out for AED63,000 can reach up to a 9.7% return on investment.

Jumeirah Lake Towers is set near Dubai’s central Sheikh Zayed Road and between two metro stations. Whether you’re looking to buy a property for yourself or your business, rest assured that you and your family or employees will be happy on the commute in JLT.

In terms of lifestyle, JLT is a green and fitness-oriented community. It has beautiful placid lakes lined with smooth promenades where residents can stroll, jog, rollerblade or dog walk. The promenade is full of multicultural restaurants, as well as sports, fitness and yoga centers.


Dubai Marina

The overall residential real estate cycle in Dubai is very much at its trough stage where no declines in prices are recorded. This makes it a perfect time for investment. Dubai Marina is one of 26 locations monitored by the VPI. It is presently witnessing a soft landing in residential prices after declining 11.4 percent in value since the peak of 2014, of which, only 1.9 percent during the past year.


The Springs

These areas are getting the most inquiries from established expats wishing to purchase villas. As per many real estate agents, expressed interest via SMS texts is up by 100 percent over last year’s totals.

Expats and their partners arrive in this area with their children. They prefer villas with gardens in complexes with an established expat community. These areas lie close to international schools and good medical facilities.


Arabian Ranches

The popularity of the community implies that business is always brisk when it comes to buying homes in Arabian Ranches. There has been an average return on investment (ROI) across the community over the past six months of 5.75%. This presented a solid amount for end users looking at homes for sale in Arabian Ranches.


Downtown Dubai

This is another hotspot for interest from expat professionals on assignment. Millions of tourists flock to Dubai Mall, Souk Al Bahar, and the Burj Khalifa every year. Living in Downtown Dubai provides the highest level of amenities and luxuries.


Jumeirah Village Circle

The apartments here are in high demand as well. Jumeirah Village Circle is an emerging master community. It is well located sitting at the crossroad of three major road networks.


Reem and Jumeirah Park

These areas are rising in popularity as well. There are many expats who are looking to rent cheaply until they’re settled in and familiar with the city. These areas serve them well.


Dubai Land

This area has some of the best apartments are found in Dubai Land. It has now become popular as a convenient and affordable option for Dubai.


Dubai Real estate market

On an overall perspective, the Dubai Land Department (DLD) data has shown a healthy transactional activity in Dubai. Investment in Dubai’s real estate sector in the first half of the year crossed Dh57 billion.
The real estate market in Dubai continues to draw investors with high rental returns on investment and a great promise of capital value appreciation.

Dubai’s real estate market continues to be strong with rental yields going as high as 6.5 percent in select apartment categories. The apartment rents have become more affordable with a total downward adjustment in July of 2 percent year-on-year. The average yield across all categories was recorded at 5.6 percent.

The average rent for studio apartments in Dubai was stable at Dh57,000 compared to the average studio rents in the first half of 2016. However, the average was 6 percent in a year-on-year comparison with July 2015.

The units returned an average rental yield of 6.3 percent in July 2016. The average rent for 1-bed units recorded at Dh92,000. The rental yield hovering close to the 6.5-per cent mark.

The two-bed apartments fetched owners Dh145,000 in July after a downward adjustment of 3 percent. However, the rental yield was still attractive at 6 percent. The average rent of 3-bed units remained stable as compared with H1 2016 values. The rental yield was 5.4 percent in July 2016.

The largest apartments returned an average annual rent of Dh304,000 in July 2016. These exhibited a 2 percent drop in value from H1 2016. The average yield for these units was recorded at 4 percent.


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