How to make a good rental investment in Dubai?
Rental investment is very low in Europe, and more and more French and European investors are redirecting their investments to the Emirates. Dubai offers very interesting rental yields, whether through short or long term rental. So how to achieve rental yields of 7 to 12% net in Dubai? Dubai Immo, the leading French real estate agency in Dubai, gives you the keys to achieve a successful rental investment in Dubai.
1/ The choice of the area
It is imperative to invest in areas where there is a strong rental demand. To do this, you will need to identify the type of person who is likely to rent your apartment. Depending on the segment, entry-level or luxury, the proportion of tenants varies. Indeed, when we have modest or intermediate incomes, we can not afford to buy, and therefore the share of tenant increases. Especially in Dubai. On luxury properties, it's different, as wealthy people will tend to want to own more than rent their home. To make a profitable rental investment in Dubai, we recommend these areas: Business Bay, Meydan, Arjan, Jumeirah Village Circle. Indeed, the most famous areas of Dubai, such as Downtown for example, are not necessarily those in which you will achieve the highest rental returns.
2/ The type of property
To maximize your profitability, we recommend that you position yourself on small surfaces. Studios or one-bedroom apartments are particularly well suited to short-term rentals and annual rentals. The demand is very high for this type of property, which is aimed at a young population of expatriates who do not necessarily buy their apartment immediately upon arriving in Dubai. Indeed, to buy this type of property, you need to have the means, and few people will buy a studio apartment to live in all year round.
3/ The payment plan
The profitability will be maximum when you will have the possibility to spread out your payments to the maximum. Indeed, if you have a financing plan that proposes the payment of a significant percentage over several years after the handing over of the keys, your profitability will be maximum. The objective is that your future tenants pay the largest possible percentage for you, without you having to advance the money.
4/ Rental management
Our teams are able to assist you with the rental management of your properties. Whether it's for short or long term rental, our real estate agents and partners will take care of the rental of your apartments in Dubai, for an ultra competitive price and a French quality of service. As in Europe, Airbnb-type short-term rentals are the most profitable. On some projects, it is possible to exceed 12% of net profitability per year, with a good rental management on Airbnb.
5/ Beware of small savings that cost a lot in the end
We can't say it enough, you can't compromise on quality in real estate. Be very careful in choosing the real estate developer you trust. We select our partners and the projects we market with great care. Trust the expertise of our teams. For a few thousand extra euros, it is sometimes possible to position yourself on more promising projects or on units with a better view or better orientation. Our experts will be able to advise you in the right way, in your interest and only in your interest.
How to discuss my real estate project in Dubai with a French real estate agent?
Just contact us via the WhatsApp link at the bottom right of this page. You can also contact us by phone at +33 7 56 82 82 73 or on our local line at +971 56 367 2667. Our French experts are accredited by RERA, the Dubai Real Estate Regulatory Authority.
