I am planning to invest in a smaller property in international city, up to 300,000 AED. Kindly advice whether to invest in 1 bed flat or a smaller shop.
Dubai International City is really attractive from the investment point of view. I think both the residential and commercial property investments in Dubai International City could be profitable for you. All you need to do is to do long-term investment and not short-term.
It is a matter of personal preference. If you wish to start something of your own in a small shop setup in the future, then it is better to invest in a shop. On the other hand if you only want to rent out your property then i think it is better to invest in a smaller residential property because smaller residential properties always have the best demand in Dubai real estate market.
My recommendation would also be to invest in a residential property especially considering the current market climate. One bed or studio apartments are always in demand, however with a shop you need to ensure that there is enough demand in the market. If you are able to buy a shop which is already rented out then perhaps you can consider buying a shop, otherwise it will be a challenge getting it rented out.
Commercial properties rental yield is in general, slightly better than residential properties and equity gain over time will also be higher, however with commercial properties, market plays a big role in terms of occupancy, i.e. whether its rented or vacant. So the plus point will be higher capital gains, better rental yield and the only minus would be the difficulty to rent it out.
Hope this helps and all the best with your investment.
I would recommend you to invest in 1 bed room apartment as several people are moving to Dubai for job or business purpose and they prefer to reside in 1 bed room apartment. You can rent it out for short span as well to the tourists and travelers. That is why, it it better to invest in residential property.
Dubai International City is quite a good choice for investment due to location and property demand.
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