The pros and cons of buying an apartment in Dubai
With the Expo 2020 approaching and with many mega projects in the pipeline, Dubai continues to be an attractive option for real estate investors. With seemingly limitless potential, Dubai has overtaken cities like London as the most preferred property investment location for 2017.1
So, if you’ve taken the decision to invest in Dubai real estate, your next step is to decide the type of property you want to buy. Depending on your budget, you can look into purchasing from various property types available, such as apartments, villas, townhouses and land. However, apartments hold great appeal as they are suit a broad spectrum of budgets and requirements. To help you decide, check out the pros and cons of investing in one.
The pros of buying an apartment in Dubai
- In Dubai, investors are spoilt for choice with a wide variety of locations where they can invest – some apartment towers are to be found in the most central parts of the city, whilst others, further out, enjoy quieter, more rural settings
- Convenient and with access to building facilities, an apartment can be a great choice for an investment as most buildings have a gymnasium, swimming pool and / or sauna, which are free for residents
- Security is good – usually, visitors cannot enter an apartment complex without signing in at the front desk or being accompanied by a resident; also, some security staff are so helpful in a building, they almost double as a concierge!
- Most apartment buildings have convenience stores either in the building or within a short walking distance
- Utility bills in apartments are generally much less than that of villas; use of air conditioning in villas is the cause of much higher electricity consumption and irrigating a garden requires a lot of water
- If you choose to live in your apartment, you’re paying towards owning that property rather than wasting money on rent
- Should you wish to rent it out, an apartment in a good location, and priced in line with the market, is typically easy to let out – particularly if it’s ‘mid-range’, since there will always be tenants in the market, either looking for an upgrade or to reduce their rent budget, depending upon the market at the time
As with any investment, one must also consider the ’cons’ and not just the ‘pros’. Below are just a few factors to think about before buying:
- If you are the owner, maintenance costs can add up over time – whether you’re living in it, renting it out or if it remains vacant
- Space is sometimes limited and investing in a large apartment can increase costs
- Unless your apartment is soundproof, you might hear your neighbours if they are noisy, or they could hear you, so you need to keep your sound levels low
- Upgrades or maintenance usually requires approval from your building’s management first; these enhancements would also need to be carried out within specific hours on certain days
- The maintenance and cleaning of common areas is the responsibility of the building’s management – be sure to buy from a reputable developer whose buildings are well-maintained
Any real estate investment has its advantages and disadvantages. They key to making a sound investment decision is to do your research and buy a property best suited to your needs – and budget.
Sources: 1 – Khaleej Times