Top 5 places in Dubai to be a landlord in 2012

In the current real estate market in Dubai, Palm Jumeirah, Downtown Dubai, Arabian Ranches, Green Community and Dubai Marina/JBR seem to be the top five places to be a landlord in the city.

According to experts, these communities score the maximum points as opposed to other areas when factors such as price, rents, appreciation prospects and connectivity are considered.

“All of the above mentioned areas are well-connected, established communities with complete infrastructure, landscaping and an abundance of retail/leisure facilities. Demand for quality units is generally high and future leasability is promising due to either no or limited new supply within each area. Both sales prices and rental rates have been relatively stable over the last 12 months and are expected to remain at current levels for the time being” Vineet Kumar, Head of Business Development at Asteco Dubai told 'Emirates24|7'.

According to Charles Neil, CEO of Landmark Properties, “Emirates Living, Arabian Ranches, Downtown, and [the] Palm” would be the top areas for landlords in the city.

Citing the reasons for picking up these locales in the city, Kumar of Asteco added: “These locations in our opinion have a scope of capital apperception in medium to long term as they offer well maintained quality units making it a sound long-term investment. Excellent property management and unit/area maintenance is crucial to sustain values.”

Residential values have stabilised in Dubai's established and prime areas according to a Landmark Advisory's report in May of this year. These areas include certain established and prime residential areas such as Downtown Dubai and Emirates Living (Lakes, and Meadows).

Based on transactional data as well as third-party research, the report shows that capital values continue to decline in tertiary areas but the city’s most prime locations continue to witness signs of stability due to restricted supply, and demand remaining buoyant.

“Due to a combination of relocation demand from other emirates in the UAE, and people within Dubai looking to take advantage of declining prices, an increase in sales activity has occurred in key locations such as Jumeirah Lakes Towers and Dubai Marina, however, due to the existing and future supply pipeline of medium quality buildings have yet to realise stability in value, whereas higher quality buildings are closer to witnessing price stability.

“Throughout Dubai a clear trend has emerged, as we predicted. For the residential sector; good locations, well-established communities and high-quality properties are performing better than their counterparts. This is further intensified by the fact that there are considerably more apartments in weaker locations of a medium quality coming online throughout 2011.

“Villa prices have performed better than apartments, showing little change since last quarter. This stabilisation has again occurred in established communities such as Lakes and Meadows, due to an increase in demand for well-maintained villas with factors for consideration including specific types, larger plot sizes and good views,” the report elaborated.

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