Buy-to-let property in Dubai – the market for Dubai rentals
Whilst many people buy Dubai properties to live in for part of the year at least, others snap them up to use as Dubai rentals. Others still are looking for a bit of both – to retain a holiday home but also benefit from the buoyant market for buy-to-let property in Dubai. With the present gulf between the demand and supply of Dubai properties those who own buy-to-let property in Dubai are enjoying exceptional high yields from their Dubai rentals.
Purchasers of buy-to-let property in Dubai
Those buying Dubai properties with the intention of renting out can be divided into two groups. Firstly, there are the pure investors. These are experienced in buying and selling and have a good idea what to expect from Dubai rentals.
Then there are novice overseas buyers who harbour unrealistic ambitions about buy-to-let property in Dubai. The problem they often encounter is dealing in a market they know little about. Inexperienced buyers are, too often, left exposed to risks they hitherto knew nothing about.
The market for Dubai rentals
With demand outstripping supply for the next couple of years, the population continuing to grow and increasing tourism, the market for Dubai rentals is exceptionally strong at the moment. Rents recently rose across the city with price hikes in excess of 50% not uncommon. The average a tenant would expect to pay for a two-bedroom apartment is Dh8400 (£1250) per month.
With the city continuing to expand there is no reason to assume rent for Dubai properties will not keep rising to the benefit of those who bought buy-to-let property in Dubai. Tourism has also increased by over 30% since 2002, providing another boost for Dubai rentals.
Whilst rents in Dubai continue ever skyward, the cost of buying Dubai properties remains relatively low. This makes buy-to-let property in Dubai an even more attractive proposition.
Dubai rentals – long versus short term
Presently, the best yields from Dubai rentals come in the form of long-term lets. There are a great many well-paid young professionals working in Dubai requiring somewhere to stay. However, the supply-demand shortfall of Dubai properties will not last forever and, as more developments are completed, prices are likely to stabilise.
These developments have been built with consideration for investment and are often constructed near tourist spots or golf courses. It may be that investors in buy-to-let property in Dubai increasingly look towards this market in years to come. It is important to remember that the property market in Dubai is still in its infancy and could take an unpredictable turn within the next few years.
Managing buy-to-let property in Dubai
Our property management service will help to take the hassle out of managing your bookings. Customers can book and pay online with instant quotes and instant availability checking. We will notify you each time you get a new booking and once you choose to accept the booking, our robot secretary will take care of the rest.
Dubai rentals are currently performing exceptionally well. Buy-to-let property in Dubai is expected to continue to make money for owners over the next few years as a lack of supply of Dubai properties means rents will continue to rise. In the long-term, the prospects are less clear although holiday rentals are set to play a more important role in the Dubai rentals market.
