Over the years most overseas property investors have always chased capital appreciation when purchasing property in Dubai. However, with the emirates property market showing little growth over recent times rental yield has become a more important factor.
Recent analysis by ValuStrat has shown that over the last two years many areas have seen yields increase due to lower purchase prices and rental stability.
Other areas have seen rental yields soften, so it is imperative to choose the right district when investing in Dubai property.
Middle market locations have seen the strongest yields, including Dubai Sports City, International City, Discovery Gardens and Remraam.
The best yields do seem to be generated in the more affordable areas which are popular with foreign ownership which is encouraging for overseas property investors.
If simply looking for investment rather than a holiday home there are also commercial opportunities as foreigners can now also own single commercial properties.
Commercial property investment can also have advantages over residential if managing the investment from afar, as dealings are more businesslike, leases tend to be longer, and more responsibility for the maintenance and upkeep of the property is passed to the tenant.
Whether looking to invest in commercial or residential real estate in Dubai, care should be taken to purchase in the right district offering the best yield for your money.
After all, everybody wants a return on their investment.
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