Affordable Dubai Properties : With the changing landscape of Dubai real estate market, focus of investors is on affordable properties with high yields.
Gone are the days when investors in Dubai used to invest in off-plan properties and sell for higher return after few months, as the market has softened and property flipping is no longer a viable options for Dubai property investors.
More and more investors are inclined towards affordable Dubai properties that offer higher yield. The investors can be divided into two categories.
1) End Users
Latest trend in Dubai housing market has seen a lot of interest from end users. These are the people who are looking for affordable Dubai housing schemes so they can avoid paying rents without any return. While most of the projects showcased at recent Cityscape were high-end luxury projects, a few developers successfully introduced such projects which are aimed at middle income buyers for Dubai real estate market.
2) Yield Investors
These are the investors who are either looking for a good rental return on their properties in Dubai or they want a total yield. These investors are in search of affordable Dubai properties in which they can invest their money to enjoy 7-12% rental return and a good yield after 3-4 years in selling price.
In Cityscape Global 2015, most of the developers showcased projects which can only be put under luxury category. However, the discussions happening on the floor were quite progressive and important issues like demand of investors and current softening of property prices in Dubai were discussed.
The most important issue for Dubai real estate market right now is softening prices and major real estate consultancy firms around the world have predicted the prices to fall further 5 to 7 percent until year end. This opens up a gate of opportunity for developers to introduce affordable Dubai properties and grab the interest of such buyers who are interested in good rental return and higher yields.
Developers have introduced some promising affordable Dubai properties, with some communities having a starting price of studio from AED 300,000 only. These projects are aimed to generate an annual yield of around 8 percent. This yield easily exceeds with interest rates offered by banks, hence investors are showing a lot of interest in such properties.
Working towards affordable Dubai properties, a new window of opportunity can be opened for developers and constructions companies in Dubai which play an important role in growing economy of the city.