Rental revenues in Dubai reached 10%
Investment in Dubai property is the most profitable in the world
Purchasing property is one of the best ways to increase your assets. Understanding this fact works for businessmen, boosts their revenues and makes them more successful. Political and economic factors have recently changed a customary situation at real estate market having attached priorities to the countries that have managed to rapidly gain the “world leaders” status by means of the modern approach to the development. Dubai can be named as an excellent example of facilities improvement.
Nowadays, the profit received from residential rental real property in this emirate is the highest in the world and it has 0% tax rate.
Investments in Dubai residential property have reached 7.1% income from rent only. For instance, this rate is 2.82% in Hong Kong and Singapore and it does not exceed 3.2% in London.
The highest rental revenues are identified in budget-friendly districts with developed infrastructure.
Projects and districts with the highest revenue
Thus, the „Discovery Gardens” project reached 10.2% rental revenues that demonstrated increase in comparison to 9.4% rate in the year 2014. Net profit also increased from 8.04% in 2014 to 8.77% in 2015. Such an increase of the interest rate is connected to cut in price for property purchase during stable and regular rent payment.
Jumeirah Village Circle takes the second place according to the profit as it has 10% revenue and 8.86% net profit.
The third place is given to the Dubai Silicon Oasis district, and the rates are 9.8% and 8.38 accordingly.
International City, the most low-budget district in the emirate, has failed to reach the top profitable projects and got the fourth position with 9.2% revenue and 8.29% net profit. The reasons are a relatively low quality and high density along with an overestimated pricing policy at the district which has been consistently demonstrating the highest percentage figure of rental income.
In respect to other Dubai districts, net rental income in 2015 was lower than 8%. The following districts reached the rates from 7.5% to 8%: The Greens, Dubai Sports City, Business Bay, and IMPZ.
The popular districts Dubai Marina and Jumeirah Lakes Towers have managed to slightly overstep the 7% barrier. As for elite property of the artificial island Palm Jumeirah which is expensive to buy and maintain, it has brought the investors 5.59 of net earnings. Similar rates have been reached by the apartments located in the Downtown Dubai district known as “platinum square kilometer”.
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