Hi
I'm an Indian resident and I intend to buy a property in Dubai to earn regular rental return as well as appreciation on my investment in long term.
My budget is about 8,00,000 AED .
Kindly advise as to what would be a better option for me , to buy a small size villa or an apartment keeping in mind that i do not want the property to remain empty due to shortage of tenants and demand.
Please also mention the area or community where i should buy.
thanks a lot
Your budget is alright. If you are planning to buy a property in Dubai right now for long term returns, it is a good decision indeed because the prices are currently low in Dubai. However, due to not so good conditions of Dubai real estate, finding a tenant immediately can be a bit challenging.If you will enlist your property on Bayut.com as "Hot", it will enhance its visibility and will help you in finding a good tenant soon.
Moreover, I would recommend you to consider investing in a Villa in some renowned region like Meadows or Springs.
If I would be at your place, I should have invested in any villa in Meadows due to 2 reasons. First the villas are performing quite well in Dubai as compared to apartments and secondly, Meadows has showed stability in prices in the last few months. When many experts are predicting further decrease in real estate prices in Dubai, Meadows prices are expected to stay stable or increase a little. Moreover, finding a tenant for a property in Meadows would be easy.
If you have any other question, please feel free to ask any time.
As far as I can see that you are interested in regular rental return as well as increment in the rental amount with the passage of time so you can invest on long term basis. Personally, I appreciate your decision.
On this platform, all the experts have mentioned it several times that Dubai is a long term investment market. you have apprehended it well. Though the property prices were undergoing a steep drop but the situation will not be same anymore in the coming years. Therefore, investment in this region is really a good idea.
As far as, your question is concerned, whether you should invest in villa or in an apartment, I would suggest you to invest in an apartment. It is because, people tend to be more interested in leasing an apartment as compared to villa. However, it does not mean that villas are not performing well. You can lease your apartment on short and long term basis both. People prefer apartments for short stay as well.
According to your budget, the areas where you can buy an apartment are; Dubai International Financial Center, Dubai Marina, Jumeirah Lake Tower and Downtown Dubai. These all are few areas where recession has not affected the prices so much.
Hope so, it will help you in making decision. Feel free to ask us any other question.
In my opinion you can go for either a villa or an apartment, however with your budget, you will be better off buying an apartment as very few villas will fall in your budget if any. So your choice for villas will be quite limited.
Regarding which area to invest in, I continuously stress that in the present climate you should buy a property in an area where there is high demand and an area which has shown stability in the present financial downturn.
The most stable and promising area to invest in Dubai would be Dubai Marina. Please read the following post to see why Dubai Marina is the best area to consider and which other areas are also great for investing.
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