Where You Can Invest in Dubai
In this Article we’ll discuss with you different types of investment in the property, like investment in the studio, one bedroom, two bedroom and bigger units. This is quite a common question and it’s usually asked by the people who can afford to buy a big unit.
So they are thinking, should they take several small units, or one big unit. Obviously if somebody can afford only a studio they just go ahead with the studio. But anyway, let me share with you some of my ideas regarding the different types.
So let’s start with the studios.
Investment in this type of units is very common on the market. There are a lot of
transactions, a lot of people are buying studios.
One of the main reasons it is because there is way more people who can afford a studi
o or the one bedroom, two bedrooms and three bedrooms. As usually studio offers a higher return from the rent
than any other types. So the smaller the unit the higher ROI. Basically this is kind of ?? on the market.
But, studio as well has the highest price per square foot. And as I said as there is way more people who can afford the studio,
it’s quite easy to sell it in case if you want to exit. But you will ?? it to the investor as well. We will discuss other options later on.
ONE BEDROOM APARTMENT
The next option is the one bedroom. It’s kind of similar with the studio. It has a good ROI, not that bad price per sq. ft. and as well there are way more people who can afford and one bed rather than bigger uni
So there are quite a lot of transactions in this segment as well. If your budget allows you to purchase a one-bedroom apartment maybe it’s good to purchase a one-bedroom apartment. But, if you can buy two studios maybe it’s better to consider to studios as an option.
TWO BEDROOMS APARTMENT
The next type is the two-bedroom unit. And the main difference with the previous ones is that over here you as the seller will have for one more option in terms of the buyers.
So with the studio and one bedroom you will sell the unit mainly to the investors. There are not so many end users who are buying studios and one beds. Mainly it’s Investors. Obviously, there are people who buy for themselves studios and one beds but not that many.
So with the two bed you already can consider an end user as your buyer. So what does that mean to you if you are the seller and you have an option to sell it to the end user. As usually end users are ready to pay more than investors.
So investor will try to reduce the price and make it very reasonable for him in terms of the numbers, how much money he can get. While the end user if he likes the apartment, most probably he will be ready to pay a little bit more. So it means you can get a better return in terms of the appreciation. So for two bedrooms we have a new player on the market and end user.
I can’t say that return from rent in the two bed is significantly lower, but it is slightly lower. But here as I said you can potentially get a better appreciation.
THREE BEDROOM VILLAS
So let’s move to the next type and it’s a three-bedroom apartment. With the three-bedroom apartment, you will have more end users and less investors who are interested in this option. And most probably you will sell it to the end users.
This means that you can get a very good appreciation once again. But the audience to whom you can offer it will be way smaller than the two bed and one bed and big audience of the studios.
This is something that you need to consider as well. One of the very interesting segment of the three bed options is the townhouses.
As we can see there are very good examples on the market where people who want property in off plan as three bedrooms got a very good returns from it.
FOUR BEDROOM APARTMENT
So the next option that we have are four bedroom, five bedroom and six bedroom, villas, apartments etc.
This is something that I don’t really recommend for the investment. Obviously, if you are an end user and you are buying for yourself, please go ahead.
This is something for your personal use. But for the investment I think an investor should stop on the three-bedroom option, maximum on the four bedroom in some exceptions. But it doesn’t mean that people who bought a four bedroom can’t make money on it.
A very good example is the Palm Jumeirah, where the ?? home villa, initially the price over there was 2 million +, but now they’re selling for 12 million +
So you see there is a significant appreciation, and there are not too many apartments that are performed that well.
So, I hope, I explained to you the main difference between the different types of the units. As an investor, I would advise you to focus on studios to the three beds or depends on your budget, on your target, on your strategy as well. Again, it doesn’t mean that fits each and every project. You need to evaluate it.
You need to speak with your agent and try to find a best option for you that will fit your strategy and your investment plan. So if you have any questions, please feel free to get in touch with us in our office located in Business Bay Dubai,
Please click on the link below and get directions for our office, we’ll be very glad to help you out. https://alzadrealestate.com/welcome/contact-us/