Saturday, April 13, 2024

A unique project in a Business Bay area, income from real estate in Dubai and price changes: recent market news

Today Dubai can be considered a world business center, which provides a lot of opportunities for international investors to make a profit in various sectors of the economy, including real estate. Investment properties in Business Bay attract investors from all over the world, given the fact that there prices in the region continue to grow and the best time to start investing in property is now.

Photo by Wael Hneini on Unsplash

Prices continue to change in Dubai

The Dubai real estate market continues to show price growth. According to statistics, the average growth is 8.5% (apartment segment) and 13% (villa segment). But this is for the yearly basis. If we consider the dynamics on a monthly basis, then the growth is 1.4% and 0.7%, respectively.

For the previous month, experts registered 8,269 transactions. And compared to the previous year, this figure increased by 72.5%, which is already an amazing result. The CBRE report, prepared for the analysis of the residential property market in Dubai, also records a significant increase in sales in the off-plan real estate segment – by 133.5%.

Information from the Dubai Statistical Center shows excellent growth indicators for the emirate’s economy: growth was 6.2%. Experts argue that such growth was made possible due to the fact that business activity in the emirate is increasing in sectors of the economy that are not related to oil. In particular, this is the real estate market. And gaining a steady growth rate, the merits of the real estate market allow us to move the economy of the UAE forward.

How much income does investing in real estate in Dubai bring

The Dubai real estate sector offers a wealth of opportunities to generate primary or secondary income through a wide variety of offerings. Today in Dubai you can buy a small studio or a luxury villa on the coast. In other words, there is an offer for any budget.

  • The most classic investment option is the rental business. On average, the annual net profit is 5-8%, but if the property is rented out for short-term rent, then the figure can increase to 12-15% per annum.
  • Many investors delegate property management to experienced professionals – this allows you to get the maximum income through the competent investment strategy, market analysis and search for potential landlords. The purchase of hotel apartments, which are managed by a hotel brand, can bring an investor 5-9% per annum. The owner also has the right to use his own property a certain number of days a year.
  • A very reliable way of investment is resale. First, it allows you to protect your capital from inflation. Secondly, with its help you can get a profit of up to 10%. However, cases with obtaining 50%, 100% and even 150% are not isolated: buyers are ready to seriously overpay for sought-after real estate.

The results of the developer Deyaar

One of the most famous Dubai developers Deyaar published data on the amount of net profit, which is AED 25 million for the third quarter of this year. It is also reported that the total revenue of the developer amounted to AED 161.9 million.

The developer’s net profit increased by 67% compared to the previous year, while revenue increased by 9%. Such insignificant growth is explained by the process of reduction of the capital base. Deyaar CEO Saeed Al Katami says the third quarter results are a continuation of the results that were achieved earlier.

It is noteworthy that these figures do not include income data from the Regalia project, a unique skyscraper project located in the Business Bay area, with a total cost of AED 700 billion. Representatives of the developer report that in the near future they expect an even greater increase in revenue.

Currently, the company has three projects in the real estate and hospitality sector, which will contribute to both the growth of net profit and more active development in the real estate market. Representatives of the developer assure that they will continue to launch high-quality projects that will only confirm the title of a reliable developer.

Real estate agency in Dubai

Ax Capital will select for you the best options for houses, apartments, land plots or commercial real estate in a short time, help you get a mortgage, control the entire purchase process.


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