Apart from returns, investors should consider factors like capital appreciation of the property.
If an investor retains the property for a period before selling, the value would likely increase during that time. Buyers also need to contemplate if the property’s purpose may change over time.
Would they or a family member potentially live in it at some point? Would they consider putting it on short-term or long-term rent? Regarding strongest rental market performance over the next 5-10 years, as the city expands into secondary and tertiary communities, prime locations close to the coast are expected to continue performing well.
Besides, investors must consider the amenities offered within the community they are investing in. Does the community have enough of a pull factor, such as first-class leisure facilities, over the next 10 years to encourage people to move there and ensure the demand remains high?
Strong rental market growth expected over the next 5-10 years in the city’s suburban areas.
While main city centres will continue seeing sustained demand, the city’s expanding population will drive further demand towards suburbs.
Typically, new residents start by renting in areas popular and affordable residential areas such as Jumeirah Village Circle (JVC) and gradually move closer to central locations such as Downtown Dubai or Dubai Marina. When renters have been in Dubai for longer and start settling down with a family, they often look to move into villas in suburban areas, to get a house with more space and family-friendly environments.
For investors, the most promising opportunities lie in purchasing units in emerging areas that are in the process of becoming fully established. These areas often see high appreciation upon completion, allowing investors to capitalise on lower prices through off-plan purchases.
Investors must also consider the amenities offered within the community they are investing in.
