Should I buy an apartment or a villa in Dubai?

November 21, 2016

According to Cluttons, the international real estate consultant, nearly 63 per cent of Gulf Cooperation Council (GCC-based) high net worth individuals will have invested in global real estate in 2016. And Dubai will have received a fair share of these funds, as markets here continue to ride positive investment sentiments.  

A recent Dubai Land Department (DLD) survey showed property sales transactions in Dubai had already hit AED 71 billion in the first eight months of 2016, from 28,077 investors across 149 nations globally.1These robust figures are expected to continue on account of a steady travel and tourism sector, as well as the upcoming Expo 2020.

If you’re looking to invest, the next step is to decide the type of property you want to buy. To help you get started, check out options below.

Should I buy a villa?

Spacious with modern amenities, villas in Dubai’s luxury communities offer space, green surrounds and even boundless options for retail therapy. They are perfect as either rental solutions or vacationing options. Here are just a few reasons to choose a villa as your next investment:

  • Villas generally offer a generous amount of personal space – especially if you cherish your privacy
  • Architecturally, villas often have high ceilings, spacious living spaces, and more windows, than apartments, in addition to bigger balconies and the added advantage of a private garden
  • A villa is an excellent place to raise a large family, particularly if set in a family friendly neighbourhood
  • Villas can have great facilities, in terms of the surrounding master community amenities, such as parks, golf courses, shopping centres
  • If you buy off-plan or a plot, you can design a villa based on your own personal needs and requirements
  • Some villas are sold complete with plot title deed, which gives the buyer full ownership of the land on which their property is built
  • Finally, in Dubai, villa gross rental yields in Q3 2016 range from 3% to 6%2

A prime example of a lucrative villa purchase would be AKOYA Imagine 3,which offers investors flexibility through payment plans and the choice to pay for the deposit using a credit card. These quirky, contemporary villas can be a great asset for investors looking for family home.

[Related6 habits successful investors don’t want you to know]

How about an apartment?

Great apartments are all about a building’s facilities too, and their demand is hitting the roof. Convenient, very often central, in lively neighbourhoods, they are easily let out and so owners can get a great return on their investment through the rental market, not to mention capital appreciation. You might consider investing in an apartment in Dubai for the following reasons:

  • Depending upon the size of unit you choose, purchasing an apartment can be relatively easy on the pocket – many now come with convenient payment plans
  • Apartment living in Dubai is a long-established way of life and buildings come with great on-site facilities such as gymnasiums, swimming pools, barbecue areas and even community halls for entertaining
  • Investors in Dubai have a wide variety of locations to choose from in both prime and secondary locations
  • Gross rental yields for apartments in Dubai in Q3 2016 ranged from 6% to 10%2
  • For those wanting a hassle-free investment (without having to deal with tenants) a fully managed hotel apartment is the perfect choice

[Related: Advantages of investing in a hotel apartment in Dubai]

For any real estate investment, ‘returns potential’ is the most compelling argument. When it comes to Dubai, the numbers speak for themselves – the average ROI is valued at approximately 7%, in comparison to Hong Kong at 2-3% and London at 3-4%. Now is the perfect time to make your move!3

For more information on AKOYA Imagine 3 or any of DAMAC's various real estate investment options, please register your details in the form, call +971 4 301 9999 or chat with one of our property consultants.

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Sources: 1 – Dubai Land Department (DLD); 2 – Chestertons; 3 – Global Property Guide