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Investment in Dubai property market can be considered as one of the most profitable investments, in UAE. But what exactly makes it so special and worth considering? Investment in Dubai property market became more attractive due to the decline in property price.

Market Cycle 

Among one of the reasons is that Dubai property market is going through a 7-year cycle. Like every market, Dubai property market has to go through booming, recession and slump phases. It was booming few years back. Now is the time for the slump. This business cycle is typical for every industry which brings lots of improvements, as a result.

Oversupply 

The second reason for Dubai property market to decline is property oversupply. Due to the upcoming Expo 2020, Dubai developers started launching numerous real estate projects. It led to Dubai property price to drop for both off-plan and secondary markets. In order to stabilize the situation and slow down price decline, numerous measurements took place from the developer’s and government’s sides. Developers slowed down development in order not to oversupply the market and keep prices relatively stable. Government, from their side, implemented rules and regulations which benefit Dubai property market investors such as 5-, 10-years residency visa and 100% foreign ownership. All these changes worked positively for Dubai property market. It led to slowing down price decline and attracting more investors to the city.

Dubai real estate market trends 

For a very long period of time, Dubai was popular for its luxury apartments and villas, attracting thousands of investors from all over the world. Nevertheless, starting from 2016 Dubai property market’s trends have shifted. Due to constant population growth, mainly through labor flows, the citizenry of Dubai increases each year. Majority of these people are middle-class workers whose main objective is to earn money. The vast majority of them are single, couples or young families. A new strategy towards affordable housing was implemented, in order to keep people in the country and to ease their life.

Dubai property market strategy 

Dubai property market is shifting towards the mid-market segment and smaller units. This is where the real demand is picking up. Developers started focusing more on smaller and affordable units, specifically to satisfy the needs of a middle class. Three-bedroom apartments and villas were substituted by more affordable studios and 1-, 2-bedroom apartments. Proportionately, it led to an increase in ROI. While investing in a smaller apartment investor will get higher ROI, comparing to investment in bigger apartments or villas. This factor is the key when it comes to investment in Dubai property market.

Which property to choose to invest in? 

If you are an investor and interested in getting high ROI, you should consider investing in smaller units. Investments in a studio or 1-bedroom apartment can bring up to 10% – 12% ROI, depending on the location. These are the type of units in demand. Taking into consideration the upcoming Expo 2020 (with more than 30 million visitors) Dubai developers will continue implementing this strategy and focus on more affordable housing.

Choose your location 

According to numerous market studies, when it comes to investments, Dubai property market experts highlight 3 main areas:

• Discovery Gardens;
• Jumeirah Lake Towers and Dubai Marina;
• Jumeirah Village Circle.

Discovery Gardens 

One of the main advantages is that Discovery Gardens consists of multi-sized apartments. It is possible to get a studio in Discovery Gardens and pay all needed bills for less than USD 100,000. Gross rent of 11%-12% can be achieved with a net rent of 8%. Apartments in such locations will attract expat workers. By trying to save they move as far as possible from Dubai downtown. Apartments will surely be in demand, in Discovery Gardens.

Jumeirah Lake Towers and Dubai Marina 

Property prices in Dubai Marina and JLT differ between developers. There is also a great difference in the quality of units. You can find larger apartments but with poor quality and smaller apartment (for the same price) with better finishing. The first step is to find the right building rather than a developer. Some developers and buildings vary in quality and price point. The key here is to go for quality over quantity. Less square footage but to a higher spec may be a better proposition than the reverse.

Jumeirah Village Circle 

JVC is a perfect location when larger investments are considered, such as a 3-bedroom apartment. The main reason is that multiple demand points can be covered. People in larger villas or townhouses who want to downsize due to budget constraints will get attracted to this area. Also, people in larger units downsizing as they want to save, and people in smaller units with a growing family. Another advantage is that rent (in this area) will grow in the coming 24-36 months as the market improves. In terms of yield, on average properties in the JVC development offers between 15%–20% more space than those in The Springs and around 15%–20% cheaper to purchase.

Even those looking for a larger living space in Dubai still seek out value for money. This hunt for cheaper living in the heart of the city will drive more and more renters to developments like JVC, Dubai Marina and Discovery Gardens increasing demand and keeping rental yields healthy.

If you are looking for a great investment opportunity, would like to get high ROI – contact one of our property advisors. Universal Prime Real Estate team of experts will have answers to all of your questions.

What gives us a feeling of security? An apartment, stable job or business, our family and the ability to make future plans. All these basic needs are essential if you are living in your country. But what if you are living or planning to move abroad? In this case, the list above should be complemented by one more very important criteria – residency. These are the top essential things which secure our life abroad.

Dubai economy

Dubai shifter into a less oil-dependent country a few years ago. With an amazing growth rate of 6.1% in 2014, Dubai becomes one of the fastest growing economies in the world. It allowed to build trade relations with multiple countries in the world. As a result, it aids its economy. It all leads Dubai government to move towards a relatively diversified economy, improvement of infrastructure and ample foreign assets, according to the Institute of International Finance.

The introduction of 5% VAT further diversified revenues. VAT is a measure that will give more stability.

Investments for residency 

According to the latest statistical data, 3.23 million people are living in Dubai and this number will increase up to 10 million by 2027. Among the main reasons for people to move to Dubai are stable economy, numerous opportunities when it comes to investments, business and career growth. Upcoming Expo 2020 attracted a number of new investors to the city. In order to improve its image as a land of opportunities and take care of those who chose Dubai as an investment destination, its government implemented new rules and regulations. Dubai investments for residency now have few options such as 5-, 10-years residency visa and 100% ownership. According to His Highness Sheikh Mohammed, global investors can have 100% ownership of their companies in the country. He the following vision in his Tweet: “Our open environment, tolerant values, infrastructure, and flexible legislation constitute the best plan to attract global investments and exceptional talents. The UAE will remain a land of opportunities. It is the best environment to realize the dreams of humans and unleashes their exceptional potentialities.”

How much should you invest to be eligible for Dubai residency? 

Depending on the number of your investments you can be granted 5- or 10- years visa. Those who own property worth AED 5 million or more will be eligible for a 5-year residency visa. Investors who hold an investment through a deposit in an established company or a business partnership worth AED 10 million or more will be granted a renewable residency visa every 10 years. Others who made various investments of no less than AED 10 million, including property – which must be worth no more than 40% of the total investment – will also qualify for a renewable residency visa every 10 years.

Entrepreneurs who own a project worth AED 500,000 or above can be granted 5 years visa with the further possibility of upgrading it to an investor’s visa. It can be done only if all needed requirements are met.

What are the main benefits of the investor’s visa? 

Apart from getting 5- or 10-years residency visa, Dubai investors will receive a number of other benefits such as:

• Free entry into the country and residence on its territory;
• Arrangements for moving to the UAE for members of the family;
• Opening a personal account in one of the banks of the UAE;
• Obtaining a driver’s license and insurance in one of the Emirates;
• Teaching in educational institutions throughout the country;
• Free entry into the countries of the Persian Gulf and some other countries;
• Receiving profit and income that are not taxable.

The above article provides full information on Dubai investments for residency and how an investor can benefit from it. But the main question is: “What project to choose to invest in?” This puzzle can be solved by one of our experienced property advisors. Universal Prime Real Estate property advisor can not only suggest what project you should invest in, but also what is the best time for investment including projects with high ROI that you should consider.

Contact Universal Prime Real Estate and let our agents help you in creating a better future for you.

Many of us have certain stereotype when it comes to Millennials, those who were born between the years 1982 and 2000. You can always hear that they are spoiled, lazy, irresponsible, social media addicts, etc. But is it actually shows the real picture?

In many countries Millennials constitutes the majority of country’s population. For instance, in USA Millennials are the largest age group who are hardworking, goal oriented who are getting good job and gaining financial stability very quickly. They are the ones who changing the world trends drastically.

Numbers talk

Millennials are very smart and careful when it comes to big investment. These kind of people like deals and can easily invest in something they really believe in. According to the latest research conducted by Bank of America 1 in 6 Millennials have savings of $100,000 and ready to invest. In 2017, Millennials made up the largest group of homebuyers (34%) and of all Millennials property investors, 66% were first-timers. It makes a lot of sense that they are becoming more and more interested in real estate investments as 85% of Millennials find it one of the best investment opportunities.

Consider real estate investment now.

What are the main benefits for Millennials if they invest in real estate now? Check our 5 top benefits if you are planning real estate investment.

1. Recovery

Every investor, when they only start this game, face ups and downs. If you failed in your first investment you will recover faster comparing to older investors. Main concern for older investors will be whether it affects their retirement or not, when Millennials can learn fast from their mistake and try again.

2. Less responsibility

Every door is open for young people. This expression as well as possible describes variety of opportunities for younger generation. And real estate investment opens enormous amount of them. Millennials are active and like to do things fast. Real estate investment may not be considered as a risk as majority of them don’t have family, they are not tied down to a certain location or have countless expenses. All these factors allow them to make the right investment decision.

3. Decision making

Older investors tent to take time when it comes to real estate investments. They take into consideration all pros and cons, do proper market research and check different options, when Millennials are way faster. They know already what they want and they are not afraid to make the final decision.

4. Long term investments

Real estate can make you rich – this is out of question, even though it is not a quick process. To reach the maximum return on your investments, you’ll need time. Nothing happens overnight. You’ll enjoy your investment over a longer period of time by getting into it early.

5. Financial freedom

By investing in real estate when you are young can protect your family from job loss or financial instability. Even if you lose your job, you’ll have money coming in from your real estate investment. Eventually, your real estate will continue making money for you even when you’re not working.

There is no doubt that Millennials are entering into their peak investing years, and their actions should be taken into consideration. Numerous opportunities are available for them, taking into consideration current Dubai real estate market situation, multiple projects with easy payment plans. All this makes investing easier and more accessible.