WHY RENTAL YIELD PROJECTIONS MIGHT NOT BE THE TRUE EXPERIENCE IN DUBAI’S PROPERTY MARKET

Dubai’s real estate sector has been a magnet for international investors for a long time. One of the main reasons for this are the attractive rental yields. The main communities offer competitive ROIs on an international level, but if you are buying property in Dubai, there is more to it to navigate through. In order to make a good property investment, you should be aware of the pitfalls in the industry. Let’s discuss some of the hidden challenges that may affect you in Dubai’s property market, even if the property may promise a ROI of 8 - 10% on paper.

Extended Periods Of Vacancy: With the current competitive nature of the market, every type of property, even in well-located communities might be vacant for longer periods of time. This cuts down the annual yield while losing money on service charges and other services.

Maintenance and Repairs: Properties with regular maintenance, renovations and emergency repairs become costly while not being able to put the property out in the market during significant repairs.

Inconsistent Demand: Every type of community preliminary attracts different types of tenants. The property type and amenities not meeting their requirements, their economic situations and trends might cause certain properties to have inconsistent demand.

Tenant Quality & Turnover: With a lot of people moving to Dubai for employment, the count of poor quality tenants go up. Not vetting tenants properly costs landlords down the line dealing with legal issues, property damage, bad impression on viewings and more.

With many undetected issues lying around in the market, how does a property buyer make sure that their property investment and property rental are done properly?

With a better understanding of the market, property owners can have a strategic approach in securing the best ROI their property can get. But on the other hand, property buyers are busy with their professional pursuits or might be new to the country, how can they study the market?

This is where professional property consultants and management services come in.

At Anarock Middle East, our industry experts keep a close eye in the property market. Specialising in high-performing assets with strong yield potential, we study every element that matters in attracting quality tenants and delivering top notch deals in Dubai. With every service provider in the industry to cover all angles in property transactions, property buyers feel no pressure or hassle when investing in real estate.

Once the property is purchased, our property management team can take over to ensure that the property receives the best tenants, has proper repairs to avoid larger damages, handles complaints and legal issues. This allows property owners a peace of mind knowing that their property is looked after by professionals while they collect higher ROIs.

If you are looking to invest in Dubai’s property market, reach out to us. Share your real estate requirements with us, together let’s secure the right property for you with efficiency, professionalism and insight.