Investment Advice for Young Couples looking to Invest in Dubai Property
The UAE has shown remarkable growth in all sectors over the past few years. This accelerated maturity of property investment in Dubai has made the emirate a hub for businesses and families looking to move to the UAE. A recent survey by Bayut.com showed 52% respondents saying that investing in property in Dubai is the best option when compared to stocks and gold.
Looking to buy studio flat in Dubai? Although property investment in Dubai may be the best option, it can be a bit daunting for many – especially young couples and new families. Let’s take a look at some of the things that any young couple should consider before investing property in Dubai.
Purpose of investment
The first step when evaluating property investment in Dubai is figuring out the purpose your investment – this will be your guiding principle.
Is your purpose to generate savings from your income for a short while? Or, would you rather secure a home for long-term settlement in the UAE? If the answer is the former, then investing in real estate in Dubai can be less straightforward, but still possible if you have the capital to invest. Bear in mind you will need to pay for down payments and an equated monthly instalment (EMI). If you don’t plan to stay in the UAE for more than five years, it is worth trying to find a property that you can rent out, should you decide to relocate and consider selling later when it would be financially advantageous to you.
If you and your partner have long-term settlement plans in the UAE, buying a property is extremely worthwhile. The majority of residential areas in Dubai provide residents with all the facilities and amenities nearby, so you cannot go wrong when it comes to the future of you and your family.
Renting versus Buying Property in Dubai
After evaluating the purpose of investment, the next thing to consider is the investment type. Renting versus buying property in Dubai is heavily dependent on two factors – budget and tenure in Dubai.
Experts say that at least 40% of a resident’s income goes into paying rent. Therefore while thinking of renting any property in Dubai, do keep in mind that a significant portion of your income would need to be set aside to pay rent. Renting can reduce the chances of savings, as rents can and do increase depending on the market. The consideration of short-term versus long-term rentals both villas and apartments is important.
Rents for a 1-bedroom apartment in Dubai tend to be around AED 50,000 to AED 60,000 yearly at current prices. The more affordable 1-bedroom apartments are as low as AED 35,000. Renting a villa in Dubai does require a bigger budget as rents for a 2-bedroom villa in Dubai range between AED 100,000 to AED 160,000 yearly according to the listings on Bayut.com.
Tenure in Dubai is an important factor that can affect the decision of renting and buying properties in Dubai. Figuring whether you’ll be here long enough is necessary to justify your investment. Five years is a general rule of thumb to follow for property investment in Dubai, but if you are comfortable with becoming a landlord yourself after you relocate, you could consider buying a property even if you are going to be here a short while.
Although the initial investment to buy a property in Dubai may require a large sum, you will benefit from it in the long run. Rather than budgeting your monthly income to pay rent, if put in the same amount towards buying a home you will be able to enjoy a good ROI in the future.
Property Area
Choosing the right property in Dubai is essential for anyone looking to invest in Dubai properties. Some of the best areas to invest in Dubai feature all the amenities and a lifestyle great for young couples. Villas and apartments are the two most common property types available when looking to invest in property in Dubai.
Apartments are great for couples who prefer smaller living spaces, have a relatively small family plan or don’t plan to stay in the UAE for long. You will save on additional costs like air conditioning, and you don’t need to worry about the upkeep of outside space. The building itself will be the responsibility of the management, so you won’t need to worry about the maintenance of communal areas such as gyms and swimming pools. If you and your partner are looking for areas which have high-rise views and a vivid nightlife, apartments in Dubai Marina, Downtown Dubai and Jumeirah Lake Towers have luxurious apartments that provide just that. If you prefer a more family-friendly vibe, quiet neighbourhood and greenery all around apartments in Jumeirah Village Circle (JVC) and Discovery Gardens are great areas to invest in.
Villas are a better option for couples who prefer bigger living spaces and have a long-term family as well as settlement plans in the UAE. One of the biggest advantages is that when the weather is right, you can throw open the doors and let the children play in the garden, rather than having to gather your belongings and get to the local park. Some of the best residential areas in Dubai that have villas which prove all the amenities include Arabian Ranches, Al Furjan and Mirdif.
If you still not sure about buying a property, you can always take some time to think about it and rent instead. Our step-by-step guide on how to rent a property in Dubai can guide you on your decision. However, If buying is something that you think works for you and your family’s future, seeking out expert advice on property investment in Dubai can help you make a better decision. Experts can provide you detailed information on where to invest and what the best time to invest.
In conclusion, the decision of investing in the Dubai’s real estate depends on what works best for you and your partner. Before making any commitments make sure you take a moment and invest equally as much time to weigh up all the options available to you. An informed decision is the best decision – we hope the property investment advice mentioned here will help you make that informed decision of investing in property in Dubai.
If you are currently looking to rent or buy property in the Dubai, call us at 800-(BAYUT). We’ll be happy to help you find your next home.
