# If you had Dh 1m, where in Dubai would you buy real estate as an investmen?



## mannyk329 (May 9, 2012)

Hello!

I've built up a bit of a nest egg and I'd love to pick up a property in Dubai sometime over this summer before prices pick up even more than they have. I'm open to anywhere in Dubai - from the looks of it, JLT and Downtown Dubai seem to be the most promising, investment-wise (a 8-10% ROI from rent). 

I don't know too much about:
Jumeirah Village
Motor City
Silicon Oasis

Anyways, where would you invest tomorrow if you had the chance? If you've got a specific building in mind...shoot!

Cheerio,
M


----------



## raybar (Apr 14, 2013)

Dear Mr. M

That is the biggest error some people make that are not very involved in the real estate in Dubai make. If you had many millions to play with Downtown/Burj Khalifa area is the best, but 1M dh wont get you much. The Business Bay area and South Ridge areas are the fastest growing because there is many launches about to happen and the prices per sq ft are double of what the current buildings are. Another option to consider is Dubai Marina, one bedroom looking at the marina and do short term rentals where you can get average between 11-13% return in rents. Would love to adivice you more if you like.


----------



## mannyk329 (May 9, 2012)

Hey Richard, thanks for your reply and advice.

I certainly do wish I had several millions lying around! 1m is all I can afford right now unfortunately. There's not too many good buildings in the Marina that have apartments in my price range (there are, however, several poor quality ones). Anything you can recommend specifically? What do you think about Motor City, by the way?


----------



## raybar (Apr 14, 2013)

The demand for rentals in South Ridge and Business Bay is too good and getting better to even think about going somewhere else like Motor City. I sold a couple last week for about 1M in those areas and rented them. You are certanly right about the less luxurious buildings in the Marina but you have to remember that the Marina it is still the place to ''be'' if you dont want to be in the crazyness of Downtown plus traffic is not bad like it is on rush hours to Deira.


----------



## raybar (Apr 14, 2013)

Younger people that want the atmosphere of the Marina would rather stay there in a less luxurious building that somewhere else where they cant walk everywhere to nice restaurants, the beach and all that is happening.


----------



## ibkiss (Feb 1, 2012)

Raybar .. What's your take on freehold hotel apartment for sale ???

Just completed is Burjside Boulevard in Burj Khalifa area which verbally promises good ROI .. :fingerscrossed: :noidea:


----------



## dasinner (May 26, 2013)

raybar said:


> Younger people that want the atmosphere of the Marina would rather stay there in a less luxurious building that somewhere else where they cant walk everywhere to nice restaurants, the beach and all that is happening.


Hi ther i need some information regarding invesment in property, i am unable to privte msg u, could you please try to msg me thanks ...


----------



## TallyHo (Aug 21, 2011)

Rental prices for Downtown is higher than the Marina, par for par. That tells you something about the demand for downtown flats. In some ways we're nitpicking but Downtown has grown very popular with higher income people working in DIFC. 

I have been told a number of times by a variety of people that the 'It' crowd, whoever they may be, have been steadily moving to Downtown from the Marina. The Marina has substantial traffic problems of its own while Downtown is more centrally located.

Still, if you must buy something you won't go wrong in either area. The quality of building you buy into will be more important than Downtown versus Marina.

You may also want to look into the Greens. Rents have soared in the Greens in the last year - more than any other areas in Dubai. 




raybar said:


> Younger people that want the atmosphere of the Marina would rather stay there in a less luxurious building that somewhere else where they cant walk everywhere to nice restaurants, the beach and all that is happening.


----------



## Felixtoo2 (Jan 16, 2009)

Ok some may think I've gone completely mad but if it is somewhere that you want for investment and to rent out then I'd be tempted to buy two or three places International City. 
The occupancy and demand out there seems to have increased quite considerable as rents have artificially risen across Dubai and the return on investment looks fairly high when compared to a one bed studio in the favoured areas already mentioned. 
Now before you phone the men in white coats to come and get me check out the purchase prices and what they're renting for.


----------



## mannyk329 (May 9, 2012)

I just picked up a studio in DAMAC's Bay's Edge. Launches way in the future (3 years from now) but it was a decent rate and I'm a fan of the hotel apartment scheme. Interestingly, I'm also getting offers that put me AED 10K in the plus already.


----------



## raybar (Apr 14, 2013)

Sorry, I was out of the country for 4 days and was not able to see your messages. Yes Launches are the best quickest way to make a good chunk of change. In terms of long term investments and consistent Annual Rent Return you are better off buying something done. The best options nowadays are to buy studios or 1 bedrooms in Hotel Pool Programs in buildings like the Address Downtown and some others. If any of you have any other questions I would be happy to advise. pvt sms me your email or number and we can get in touch.


----------



## de Mexicaan (Apr 16, 2012)

If I had that money I would not buy any real estate in Dubai.

Maybe on short term the value will go up, but I have my doubts about the long run. In my opinion, not only the real estate value but the whole economy here is a bubble that will burst one day (probably when the oil is finished).
Downpayment requirement for mortgages is going to be higher, so the risk of losing your own money also increases.
Furthermore, taking the poor quality of the buildings into account, one can expect a maximum lifetime of 40 years. This means that you would have to depreciate 2.5% of the value per year: a significant cost. If not, at least major maintenance and renovation payments will be required.

But hey, I am a tenant here.....


----------



## Canuck_Sens (Nov 16, 2010)

Why don't you put your money to work back in the US since the Real Estate is recovering? You will enjoy capital gains moving forward. It is a fact US economy is rebounding.

I would not put a single cent in the UK. There are talks that a massive devaluation of the Sterling may be coming soon. Let's see how Mark steers the helm.


----------



## Stevesolar (Dec 21, 2012)

Canuck_Sens said:


> Why don't you put your money to work back in the US since the Real Estate is recovering? You will enjoy capital gains moving forward. It is a fact US economy is rebounding.
> 
> I would not put a single cent in the UK. There are talks that a massive devaluation of the Sterling may be coming soon. Let's see how Mark steers the helm.


Well, house prices and interest rates are very low in the UK at the moment - so if I had spare cash, I would be looking to buy property in a popular UK university town.
I would then rent it to the university and let them manage it for student lets.

We did this once before and the returns were amazing - compared with standard tenant rentals.

I don't see any devaluation of Sterling on the horizon - so interested where you got this information from.

Cheers

Steve


----------

