The Dubai real estate market offers diverse properties ranging from entry-level prices to ultra-luxury price points. There are several offerings in every segment for buyers. Those purchasing with a budget lower than Dh750, 000 should take their pick at areas that are relatively affordable such as the International City, Dubai Silicon Oasis, JVC (Jumeirah Village Circle) and Dubai Sports City. At this price range, one can buy 1 bedroom apartments or studio units. For those investing in properties at this price point, returns of 8-9% can be expected from studios while a one bedroom apartment can provide 7-8% in returns.
Buyers will require around Dh250, 000 for taking out a mortgage in this price segment. Overall customer demand is the highest in this market category since it is the entry-level price category for housing. The price band also covers apartments located in areas like JLT, Business Bay and the Dubai Marina. For those with budgets ranging between Dh750, 000 and Dh1.5 million, there are several options in this segment ranging from affordable and bigger homes to smaller homes in premium zones. There are two and three bedroom options available in areas like International City and studios in prime zones like Downtown Dubai and town homes in JVC.
Investment returns are usually between 6.5-8% in this category, covering several kinds of homes. This segment also witnesses high demand according to market experts. Buyers will require around Dh250, 000-500, 000 for taking mortgages on homes. Town Square has several options in this category and so does the Marina, Downtown, Palm Jumeirah, JBR, JLT, Motor City, JVC and The Greens and Views.
For those with budgets surpassing Dh1.5 million, there is ample scope of purchasing bigger apartments in premium zones such as the Dubai Marina, Downtown Dubai and Palm Jumeirah along with villas and town homes in several other parts of the Emirate. JVC, for example, has three bedroom town homes falling in this price point. The approximate yields in this segment vary between 4.9-7.1%. Most buyers in this category are those looking to upgrade from their previous homes or those looking for luxury villas. There are several mansions and penthouses available in some of Dubai’s most exclusive residential zones which can be purchased for millions of dirhams.
