Rental investment in Dubai: who will be your future tenant?
As you probably know, Dubai is essentially anexpatriate city. Indeed, foreigners represent about 95% of the population of Dubai. And as expatriates are mainly renters, at least when they arrive in Dubai. Dubai Immo, the number one French real estate agency in Dubai, offers you the opportunity to discover who could be the future tenant of your property in Dubai.
Single expatriates and young couples
Single expatriates and young couples make up the majority of the population in Dubai so far. Single expatriates and young couples are generally looking for studios or one bedroom apartments. Forrental investment, this is the category of property to be favored if you want to rent easily and quickly. Your tenants could be waiters, salespeople in a luxury boutique or have a middle position in a service company. In some areas, such as Silicon Oasis, your tenants could also be teachers or students (see Tria). A young single entrepreneur or couple trying their luck in Dubai could also be interested in this type of property.
Families looking for villas and townhouses
In Dubai, expatriate families have a clear preference for villa or townhouse living. Generally located in gated communities, secured and sometimes built around a golf course or a lagoon, these communities offer a wide range of services. Sports facilities, restaurants, shopping, everything is generally accessible on site, including schools in some cases. A couple with two or three children will quickly turn to renting a villa, which is less expensive than renting a large 3 or 4 bedroom apartment. Indeed, as strange as it may seem, villa rentals for this type of surface are generally much cheaper than the same surface in an apartment. And this is for a very specific reason. There are very few large apartments, except for penthouses at untouchable prices. Example of a nice rental investment in a villa: Damac Lagoons.
Seasonal rental in Dubai
Airbnb rentals are booming in Dubai. Indeed, hotels are overbooked and prices are much higher than they were in the past. Renting out your apartment for a short period of time is very profitable and very interesting for investors. Indeed, it boosts your profitability because the prices per night are higher than with the yearly rental. In addition to that, you will be able to enjoy your apartment if you wish for a few weeks a year. Programs like Prime Gardens offer one-bedroom apartments for less than 200,000€ that can comfortably accommodate 4 people. In this program, the developer had the good idea to add a shower in the guest toilet. There are thus 2 bathrooms in a 1 bedroom apartment, and two people can sleep in the master bedroom and two in the living room. No need to enter the bedroom to use the bathroom. Clever!
Conclusion
It should be assumed that your future tenant in Dubai will in all cases be an expatriate or a holidaymaker. Depending on the type of property you own, you will be addressing potentially very different social categories. For the more affordable properties, monthly payments can be considered, to make life easier for your tenant and increase your profitability. For villas and exceptional properties, rents are generally paid in one or two instalments maximum, the means of the tenants being generally more important.
