Identifying the ideal price range in which the Dubai Properties yield the best long-term returns has been a hot topic among the top real estate analysts. Undoubtedly, Dubai is a commercial hub and the real estate market in Dubai has immense potential in it. Investors are massively attracted towards buying or renting properties in Dubai.
But what is the perfect price range for any property to yield the greatest long term-returns?
According to real estate analysts, the most active segment of Dubai real estate market includes studios, 1, 2, and 3-bedroom apartments. The properties in this segment below the price point AED 1.5 million (approx $408k) is the most favorable option to get the highest returns. In the opinion of the expert analysts, properties in Dubai under $400k are financially fruitful from the investment point of view.
1-bedroom or 2-bedroom apartments in a well-rooted area is dominating the real estate market under the price range $400k. Also, it is a good option for the buyers who want to get rid of paying rents and wish to own their property in Dubai.
If you search through the best areas to buy properties in Dubai under $400k, the following details would emerge as a result.
- Downtown Dubai – being the most expensive area in Dubai, it also remains one of the most sought-after residential locations in Dubai. A studio in Downtown Dubai would cost you around $333.5k (AED 1.22m). A 1-bedroom apartment would exceed the range a bit and would cost around $431k (AED 1.58m). However, a 2-bedroom apartment would unquestionably be out of the range and would cost around $776k (AED 2.85m).
- Palm Jumeirah – 2nd most expensive residential areas in Dubai, Palm Jumeirah in undeniably an upscale location. A studio would cost you around $324k (AED 1.19m). 1-bedroom and 2-bedroom apartments are beyond the price point of $400k, they would cost around $599k (AED 2.2m) and $735k (AED 2.7m), respectively.
- Dubai Marina – among the most expensive areas in Dubai, Dubai Marina is also the most desired location for the people searching to buy or rent properties in Dubai. You can get a studio in Dubai Marina for around $228k (AED 837k), and 1-bedroom apartment for $354k (AED 1.3m). However, a 2-bedroom apartment would exceed the price point of $400k and would cost you around $599k (AED 2.2m).
- Jumeirah Lake Towers (JLT) – 4th in the list of most expensive residential areas does not make it any less desired location in Dubai. JLT is one of the most wanted areas to buy or rent properties in Dubai. A studio in JLT would cost around $190k (AED 700k), a 1-bedroom apartment would cost around $313k (AED 1.15m). A 2-bedroom apartment would go beyond the set price point and would cost around $441k (AED 1.62m).
- Jumeirah Village Circle (JVC) – JVC comes last in the list. This is the least expensive location among the luxurious residential areas in Dubai. Amazingly, none of the above-discussed 3 types of properties goes beyond the range of $400k. A studio in JVC would cost you around $125k (AED 460k), a 1-bedroom apartment would cost around $204k (AED 750k), and a 2-bedroom apartment would cost around $310k (AED 1.14m).
According to the experts, the families looking to invest should stay below the price point of $400k. This is the most stable segment in the Dubai real estate.
As per the Saudi Gazette, Dubai real estate prices have fallen by 20% since the last market peak which was in October 2014. Therefore no further decline in the property prices is expected over the next year.
The trends in property prices suggest that the market has become mature. Price temperament is expected to be much stable than the previous years. Therefore it is a sign for the expatriates to confidently buy properties in Dubai as the prices are bottomed out. It is a favorable time to invest in the property and benefit from the potential long-term capital appreciation.
Even if the investment is to be leased out, the buyer could expect a 7% to 9% gross surplus in certain areas. Even after offsetting the interest payment, and other service charges, a good profit rent can be achieved by the owner.
Dubai is a financially favorable city. As a growing economy, the real estate sector in Dubai holds immense value among the property investors. Therefore, the investors must consider the above-presented statistics to make a least risky and most yielding investment in the Dubai real estate market.