"Each location in Dubai has its own specifics. Some are only suitable for long-term rental in terms of the level of return. Of course, there are locations that are also suitable for capital appreciation - that is, purchase and subsequent sale. A client who is unfamiliar with Dubai should follow the recommendations of a real estate agent. However, be careful, you have to choose carefully here too," explains Group CEO & Co-founder IQPRO Investment, Mirka Nieuwenhuis.
What is important for a client to know before choosing a residential property in Dubai?
I will always say that the cornerstone of investing in real estate in Dubai is choosing a real estate agent and developer. You should always choose an experienced, quality business partner who will familiarize you with the processes and guide you through them.
But let's turn the tables. A client who really wants to invest in real estate in Dubai must say exactly what financial resources he has, how he wants to manage the property and what his ideas are regarding returns. Only after answering these questions can the client, together with the real estate agent, decide on the choice of location. And it is precisely knowledge of the location that is key to the correct investment in residential real estate.
Dubai is divided into several neighborhoods. Are they divided into different groups of investors in terms of real estate investments?
Yes, as I already indicated in the answer above. You can choose a good real estate agent, the right developer, and a quality project or an already established property, but if you don't choose the right location, your expected returns can easily turn into unprofitable ones.
Dubai has many locations. I don't think it would be efficient to name them all here, so I will mention just a few of them. Dubai Marina, Palm Jumeirah, Palm Jebel Ali, Downtown Dubai, Dubai Hills, Dubai South, Dubai Islands. These are locations that are suitable for clients with a high amount of their own funds, but also for clients who have their own money combined with loan funds. On the other hand, it is good to say that these locations are not only suitable according to the amount of funds, but also according to family status.
Let's stay on the topic of financing. What is the minimum price limit for buying a flat/apartment in Dubai?
The increased demand for real estate investment in the UAE has also increased the price threshold for investing in apartments or flats. Currently, prices range from 200,000 euros and above. Of course, there are properties below this threshold, but then you cannot expect sufficient profitability from renting or capital gains on resale.
It should be emphasized that a client who does not have 200 thousand euros at his disposal can still invest in the Emirates and buy an apartment - but outside of Dubai. If we have a client with a lower budget at IQPRO Investment, we will not refuse him, but we will not force him to offer an apartment in Dubai , from which he would not have the expected profit due to his finances. We will offer him another emirate.
Sharjah is the third largest emirate in the UAE, and is currently attractive to clients with a smaller amount of money. A new, high-quality project is being built there, which will also be suitable for families with children. It is the first ever freehold project by Ajmal Makan in this emirate. You will have it in full ownership, not leased for 99 years.
But there is one drawback for now. We cannot provide him with so-called "property management" after the purchase, i.e. complete management of the rental property and service.
Let's imagine this model situation: A client wants to invest in residential real estate but only has 150,000 euros available. Can he apply for a mortgage in Dubai to exceed the 200,000 euros threshold and thus buy an apartment in this emirate? Of course, with a good return.
In Dubai, the system is set up as follows: If you are not a resident who owns at least one property in the UAE, it is very difficult to get a mortgage. This also applies to the case of an off-plan project from a developer.
For an off-plan project, you can only get a mortgage under certain conditions. 60% of the amount for the property must be repaid. However, this depends on the bank you apply to. Another condition is that the client must also have higher credibility in their own country, a regular income of approximately 5,500 euros/month. I recommend that clients from Slovakia who do not have enough of their own finances use an American mortgage.
The topic of "Dubai mortgage" is really for a broader debate and especially not a general one. Therefore, if any of your readers are thinking about buying a property in Dubai, they can meet me personally for a private consultation on 18.5 - 21.5. 2025 in Bratislava, Hotel Marrol's.
Which of the locations has the best return? Let's focus on capital appreciation.
The best return is always in a location that is currently under construction. Currently, we can talk about Dubai Islands or Dubai Maritime City. In Dubai, villas in various neighborhoods are also interesting for capital gains, because there are not so many of them here yet. The latest off-plan projects in Downtown can also be a good investment.
What about the investment return on rental properties?
The result depends on the initial investment. With a medium "budget" for which Slovaks and Czechs can buy real estate in Dubai, Jumeirah Village Circle is an ideal location for long-term rental. Many people offer it for short-term rental, but from my more than 20 years of experience in the real estate market in Dubai, it has real investment potential for long-term rental.
Dubai Marina or Downtown are also suitable for rent. And newly emerging projects - so-called off-plan projects at launch.
Why is Palm Jumeirah such a hot spot in the real estate world? Isn't it just a visual gimmick that, when "unwrapped," yields disadvantageous profitability?
It was the first project, such a flagship in the seaside area of Dubai. They were the only freehold beach villas in the UAE in the shape of a palm tree.
Today, it's really just about being luxurious. It's not a location for investing with the goal of achieving a high return, if we're talking about renting. If you're not looking for profit, but want to enjoy this location with your family, then it makes sense to buy a property in this neighborhood.
Palm Jebel Ali is currently being touted as the future of luxury living in Dubai. How is it different from the aforementioned flagship, Palm Jumeirah?
The Palm Jebel Ali, while part of Dubai's ambitious island development, stands out in a few key ways. I'll try to summarize it in three points:
- Size and Design: Palm Jebel Ali is larger than Palm Jumeirah, allowing for even more expansive and luxurious residential options.
- Commitment to Sustainability: Development plans incorporate more advanced sustainability practices to create eco-friendly neighborhoods.
- Future Innovations: The development at Palm Jebel Ali is expected to incorporate cutting-edge technology in smart home integration and community management, further enhancing its status as a luxury living space.
The future of locations, plans and overall development in Dubai is important information when investing. What has been built and improved in Dubai over the past year?
Dubai has seen significant developments in the past year, including infrastructure improvements. Modernization of roads and transportation networks, expansion of the Dubai Metro, and improved access to key areas.
Another "milestone" is the launch of new luxury residential projects in various sectors, including high-end branded apartments and villas. As for the goals that have been achieved over the past year, we can talk about investments in hospitality projects. The new hotels and resorts are expected to help attract 25 million visitors per year.
The Emirates is not just about luxury and modern buildings. There is also the so-called green initiative. As for Dubai, it is a development that is in line with the set goals, including within the framework of the Dubai 2040 plan. Overall, although the Dubai 2040 vision is extensive and still ongoing, tangible progress indicates that it is well on its way to fulfillment.
About IQPRO INVESTMENT GROUP
IQPRO INVESTMENT GROUP is a holding company with subsidiaries that have all the necessary permits and licenses for all types of real estate transactions.
As part of the holding, we also offer clients support and services in the field of finance. We specialize in providing comprehensive mortgage services tailored to the diverse needs of clients. We provide continuous support and advice even after the mortgage approval phase. Our unique service is exclusive investment packages for our carefully selected "off-plan" projects. Learn more here:
https://iqproinvestment.ae
