Return on investment and growth potential
Investing inreal estate in Dubai also gives you the chance to make a profit. Yes, buying a villa in Dubai can make you money, thanks to the city's strong economic growth potential. In the rest of this article, we'll tell you all you need to know on this subject, and also discuss the question of return on investment, which may be of interest to you if you're a buy-to-let enthusiast.
Dubai, exceptional growth potential
Dubai's real estate market is experiencing unprecedented growth! Indeed, in 2023, the number of units sold simply exploded compared to 2022, which was already a record year. More than 15,500 villas were sold, representing a 30.98% increase in just 12 months. Impressive figures, which tend to show that the market is indeed doing very well.
And the growth potential is there. Even though growth is set to slow in 2024, experts are expecting another record year. According to some analysts, the expected rise in sales could be around 10-15%. Of course, these are only forecasts, and there's no guarantee that these figures will be achieved. They may even be exceeded!
However, this presupposes several things:
- The first is that Dubai's appeal is real. The real estate market is doing very well and the results observed are very good, proof that the measures put in place by the local government are working.
- The second is that growth will continue, which means a naturally attractive return on investment for villa resellers wishing to put their property back on the market. Demand is high and investors are on the lookout!
These are just some of the arguments that could convince you toinvest in a villa in Dubai!
Market growth drives up prices
The growth of the market and the ever-increasing demand for villas in Dubai mean that one thing is perfectly natural: prices have to rise (especially in a somewhat unusual context, marked by galloping inflation). It's the law of supply and demand!
By 2024, experts expect prices to have risen by between 5% and 20%, depending on the type of property, its location, surface area, etc. This trend is in line with what was already observed last year, when rents rose by almost the same amount (if not more).
It has to be said that the Emirate is booming. More and more people are moving there (50,000 new expatriates in the first six months of 2023), the country is politically stable and booming economically, and the weather is warm and sunny all year round... In short, there are plenty of reasons to settle here. What's more, new districts are about to come into being: Palm Jebel Ali will finally see the light of day, while engineers are hard at work on Dubai Islands, a complex of 5 superb islands!
What return can I expect on my investment in a villa in Dubai?
As the market evolves quite drastically from one year to the next, it can be quite complicated to determine the true possible return on investment following the purchase of a property in Dubai. Based on figures for 2022 - 2023, the Dubai Land Department suggests an average ROI of between 5 and 8.4%. However, these figures take into account absolutely all types of property. If we focus solely on houses, villas and townhouses in the premium segment, the DLD suggests an annual return of around 5%.
Dubai Immo, the best villas in Dubai are on our platform
Would you like to invest in real estate in Dubai? Are you planning to buy a property, particularly a villa or townhouse? If so, you have two options. The first is to turn to our website and browse the many villa offers on the market. You'll have access to countless programs, signed by the best developers on the market. Interested in one of them? Download the brochure!
The second option is to contact one of our real estate agents directly. You can do this via our email contact form, or via WhatsApp. Our RERA-certified agents will get back to you as soon as possible, with all the information you need about our project. Don't forget to prepare the outlines:
- What are your expectations and what type of property are you targeting?
- What's your budget?
- Do you have a location in mind?
Once all the information has been gathered, we'll be able to offer you an exceptional property that meets all the criteria you mentioned during our first meeting.
It's fast, free and, above all, without obligation!
