The Best Places in The UAE To Own or Rent a Property
The Best Places in The UAE To Own or Rent a Property
If you plan to buy or rent a property in the UAE, you need to know where to buy or rent. When you move into the country, you need to either rent or buy a real estate property. This article sums up the best places in the UAE to own or rent a property.
Staying in the UAE can be enjoyable. During the last few years, the influx of foreigners into the UAE has increased significantly, mainly due to the country’s attractiveness.
The COVID19 pandemic negatively impacted the real estate market in the UAE, creating supply and demand inequalities. As a result, property and rental prices came down. Landlords have seen their rental income going down.
The situation will not remain the same forever because the real estate market is cyclical. When the market strengthens, the values of real estate properties grow, but the value stabilizes during certain stages of the cycle. Therefore, you should figure out the market’s phase to make the right investment decision.
You should be careful when there is a fall in the market. It would help if you determined all the factors that can negatively impact your profitability. For example, if your objective is to purchase a property for renting out, you should avoid the purchase during the falling period as the rents are likely to fall. So, you will get a lower return on investment.
Then the risk factor becomes more severe if you plan to purchase a property to resale in the short term. However, there is not much of an issue if you purchase a property to sell it off in the long term.
The Best Places to Rent or Purchase a Real Estate Property in the UAE
Now, let us explore the best places to either rent or buy in the UAE.
Abu Dhabi
In Abu Dhabi, you can get world-class real estate properties. And you will also get many Abu Dhabi Properties for rent.
Al Ghadeer
Al Ghadeer is located on the border of Dubai and Abu Dhabi. The notable thing is that you can get the highest rental yield of around 8 percent in Abu Dhabi. So, for example, the rent for a one-bedroom apartment starts from AED 22,000, and it can go up to AED 43,000 AED for a two-room apartment. Due to the impact of the COVID19, property sales prices have fallen by 7.5 percent.
Al Reef
Al Reef is located on the outskirts of Abu Dhabi. You can get the second-highest rental yield at around 7.5 percent. In Al Reef, the rent of a one-bedroom apartment starts from 48,000 AED and a three-bedroom apartment from AED 90,000. Rents for villas in Al Reef range between AED 80,000 to 165,000. During the pandemic, the preference among residents for spacious housing grew. As such, the popularity of Al Reef grew, which led to real estate property prices moving up by 4 percent.
Al Reem Island
Al Reem Island has the third-highest rental profitability in Abu Dhabi, with an average of 6.8%. A one-bedroom apartment on Al Reem Island can be rented from 50,000 to 70,000 AED, while a premium four-bedroom apartment will have an annual rent of about 240,000 AED.
Al Raha Beach and YAS Island
Al Raha Beach and Yas Island are popular places to rent apartments in Abu Dhabi. According to the latest trend, rental yields are at 6.2 and 6 percent, respectively. Due to the pandemic, property prices have dropped 6 percent in Al Raha, and Yas Island. In contrast, prices of villas increased by 12 percent in Yas Island.
In Al Raha Beach, rent for a one-bedroom apartment starts from AED 65,000, and a premium four-bedroom apartment starts at AED 260,000. The rent for a four-bedroom townhouse can be between AED 190,000 and 310,000.
In Yas Island, the rent for a one-bedroom apartment starts at AED 70,000, and for a three-bedroom apartment, you can expect a rent of around AED 190,000. While a two-bedroom villa on Yas Island can come at a rent of AED 160,000, a five-bedroom villa can come at a rent between AED 240,000 and AED 300,000.
The good thing is; it is now the best time to buy a property for renting out. Interest rates are at an all-time low. So, buying a property can offer a good return on your investment. In addition, you can now own a property at a lesser amount.
Dubai
Dubai is one of the most progressive cities in the world. Dubai city offers an enjoyable and luxurious living. In Dubai, you can consider the following places:
Discovery Gardens Residential Complex
In Dubai, you can get the highest rental yield in the Discovery Gardens at around 8 percent. In the community, the rent for a two-bedroom apartment is AED 38,000 AED.
International City District
If you rent out an apartment in the International City District, you can expect a rental yield of around 8 percent. While the average rent for a two-bedroom apartment in the community is AED 25,000, the selling price is around AED 300,000. Recently, rents in the community have shot up by 6 percent.
Damac Hills Community of Villas and Townhouses
In the Damac Hills community, the profitability of selling a property can go up to 6 percent. And rental yields can go up to 5 percent.
Conclusion
If you plan to buy a property in the UAE, execute your plan as it is the best time now. You can make a profit by renting or reselling a property. Or else, you can stay with your family in the property you purchase in the UAE.
