A real estate investor’s new gold mine: Dubai
There are a few reasons why you should be eyeing properties for sale in Dubai, and high rental is one of them. Capitalizing on that is something that everyone wants to do, and there are a few tips on how to best profit from renting properties in the UAE.
Understanding your demographic
Who are you renting out to? It’s an important question to answer because you want to make sure that you are able to cater to your niche crowd. A family might not require the same amenities as a businessman and vice versa. A couple will not have need for a baby cot, especially if they are honeymooning.
Now, the biggest demographic that makes up central Dubai are executives and other business operatives. They need quick internet, fast service and efficiency. Your apartment must be located in a convenient transport hub, is easy to check into (preferably with self check in and flexible times) and should be reasonably comfortable. Businessmen are not interested in staying in a budget stay as most of the time they are operating on a company’s budget and will prefer to sleep in comfort, which doesn’t have to be luxurious, but has to have a degree of elegance and quality.
Short term rentals over long term stays
Bearing that the tenants are usually businessmen, it goes on to reason that they will not stay for extended periods of time. Therefore, the tenancy agreement should be fluid and flexible. They can opt for a night or a month, depending on the length of their business in Dubai. If the renter is being particular and fussy regarding the length of stay, then it might put a dent in the business. There will be other renters who will be able to accommodate their requests, therefore, it is best to buck up and go with the flow. Furthermore, short term rentals often rake in more than their long term counterparts which means that the shorter the stay, the more you earn.
Dubai properties currently worth more than London or New York in terms of rental yields
According to The National, “UAE properties continued to provide high rental yields despite sales prices and rents softening in the first half of the year” especially after the new rental adjustments made to UAE regulations regarding rental terms. Apartments are seeing a huge increase in gross returns over villas - that might give you an idea in what to invest in. An apartment in central Dubai, if you want to capitalize on the current economic standing and boom in rental industry.
Don’t just rely on Airbnb, use their local listing providers
As the title suggests, do not solely rely on Airbnb when there are other local platforms that will help you reach out to a wider network. While Airbnb is commonly utilized by travellers, tech savvy executives and families, a local provider will be able to reach out to those who are more street-smart about finding great deals as it’s not a secret that platforms such as Airbnb will take a percentage of earnings, making the stays that much more expensive.
