RUSTAR REAL ESTATE. DUBAI RESIDENTIAL INVESTMENT

Dubai Residential Investment

A review of potential opportunities in this area of the market can be carried out using three projects designed for investors with different incomes.

International city - A project for the middle class. The complex consists of low-rise buildings with two-room and one-room apartments (studios). Prices here start from 63 thousand dollars for a studio with an area of 44 square meters. m and 90 thousand dollars for a two-room apartment of 66 square meters. m

The project is attractive in that one of the seven quarters (clusters) has already been built, and the rent for a two-room apartment is about 11 thousand dollars a year, which in terms of yield yields 12-15% per annum.

The closest competitor to the International City project can be considered the urban area of Bar Dubai, where rental of the same type of housing has grown in recent years to 13-16 thousand dollars a year. At the same time, there is every reason to expect a further increase in rental prices in International City after completion of construction at the end of 2006. The investment potential of this project is quite high. Compare the figures: 1351 dollars per square. m in International City and 3500-7300 dollars per square meter. m at the famous projects Palm Jumeirah and Palm Jebel Ali.

One of the new large-scale projects is Jumeirah village. The complex accommodates 7,000 villas and townhouses and is a short drive from the hotels, beaches, restaurants and department stores of the prestigious Jumeirah area. In the immediate vicinity will be located several Free Economic Zones at once: Dubai Media City, Dubai Internet City and Jebel Ali Free Zone. It is believed that the main buyers of this property will be middle and senior managers with families. The price of a two-room townhouse in Jumeirah Village is $ 1,557 per sq. m with a total area of 150 sq. m. m. The price changes inversely with the area and will amount to 1340 dollars per square meter. m with a total area of 278 square meters. m. At the same time, the master plan of the complex includes a complete urban infrastructure, where everything is provided - from the Internet line to playgrounds and football fields.

Compared to ready-made projects of this type, Jumeirah Village has much more favorable prices. So, for example, a Springs complex similar in type will require the investor to pay the market value of the object at a time, which will be about 160% of the original price (the initial price set by the developer at the time of the project announcement). For the same money you can buy several houses in Jumeirah Village at once. The next jump up by 10-15% is expected after the start of official registration of resale transactions.

The most expensive and most famous project in Dubai is a unique artificial island. Palm Jumeirah ("Palm Jumeirah"). This and two subsequent projects of "palm trees" are designed to become symbols of the UAE. Celebrities such as David Beckham, Elton John, Michael Schumacher and Crown Prince of Monaco have already acquired property on Palm Jumeirah. At least thanks to this, housing here acquires elite status. Any building in this project is located on the Gulf and has panoramic views of the sea. Here, relatively affordable apartments can be a profitable investment. An apartment with two bedrooms and a living room will cost a lot - an average of $ 4,000 per square meter. m. Moreover, the complex Shoreline, in question, will be ready in 2006. Other projects located on the "palm" will be completed only by 2009, and the cost per square meter in them is more than $ 5,000.

Most projects are currently under construction. So, if you need ready-made housing, the choice will be somewhat limited. A good apartment overlooking the sea bay (project Dubai Marina) in a finished house costs from $ 3,000 per square meter. m with an area of 110 square meters. m for one-bedroom apartments. The same, but more modest in layout apartment in the complex of low-rise buildings Greens costs $ 2600 per square meter. m. Here the area of a two-room apartment is from 68 to 74 square meters. m

Buyers who are interested in a finished villa or town house in the Meadows mass development project will pay $ 1,500 per square meter for a spacious house. m. For a townhouse in a project of this type Springs will have to pay 2400 dollars per square meter. m, since the living space here is quite small, and the principle of price increases is inversely proportional to size, works flawlessly.

Even with this order of prices, there is no doubt in the liquidity of the real estate market. The rapid economic development of the United Arab Emirates inevitably leads to constant population growth in the state. According to preliminary estimates of scientists, the number of inhabitants of the UAE in December 2005 will amount to 5 million people against 4.33 million in the previous year.

Information provided by Rustar Real Estate -
Dubai Luxury Real Estate Leader.