Renting out apartments in Dubai is one of the most profitable options for foreigners who want to earn an income from their property. This city is a real paradise for investors who are looking for a high return on their investment. However, most investors are looking for ways to make their apartments for sale in Dubai more appealing to potential tenants and optimize rental yields.
In this article, we will look at several reasons why renting apartments in Dubai is very profitable for foreigners. We will explore seven useful tips to increase and stabilize your monthly income.
Rental Property In Dubai
There are several significant reasons why business people worldwide invest in rental housing in Dubai.
The rapid growth of the economy
Dubai is a city that is developing and growing rapidly. Over the past few decades, it has gone from being a small deserted city to one of the world’s largest commercial and financial centers. This means that the demand for housing in Dubai is constantly increasing, making renting apartments very profitable for foreigners.
Stability of government
Dubai is one of the most stable and secure cities in the world. The government of Dubai pays a lot of attention to economic and infrastructure development, which makes this city very attractive for businesses and investors. This also means that the Dubai government protects the property rights of foreign investors, which makes renting out apartments transparent for foreigners.
Dubai is a city with low taxes. Unlike many other countries, Dubai levies no personal income tax. This means that foreign investors can earn income from their properties without paying high taxes.
Attractive housing prices
Housing in Dubai is relatively cheap compared to other global centers. This makes renting out apartments very lucrative for foreign investors who can buy property at a low price and rent it out at a high price.
High rental rates
Rental rates in Dubai are among the highest in the world. This is due to the high demand for housing in this city and the low affordability of housing to rent. Although tenants have to pay a significant sum of money for an apartment they rent, the housing is worth it.
Dubai is a city with a developed infrastructure. It has all the necessary services and amenities that make the lives of locals and foreign residents comfortable and convenient. Owners of apartments in Dubai can offer their tenants a high level of comfort and amenities inside and outside the rented housing.
7 Tips To Increase Rental Income
As in any other city, to get the maximum rental income in Dubai, you need to be responsible for the following steps:
1. Hire a trusted real estate agent
The most rational approach to increasing rental costs is choosing a reliable real estate agency. AX CAPITAL in Dubai is a team of professionals with whom you can build win-win relationships. Conduct an open and honest conversation with the real estate agent and get valuable help in managing your Dubai property.
2. Choose the most demanded location for the property
Properties located in the city center or near major attractions usually rent at a higher price.
3. Increase the quality of the property
A well-equipped and well-maintained property attracts more tenants and allows you to get higher rents. However, the rental figure in your mind should be applied to real life irrespective of the luxuriousness of housing. Have a critical look at your apartment. It is likely to be rented out quickly if it is well maintained.
4. Evaluate the competition in the market
If there are many vacant properties on the market to rent, rental prices may be lower. Try to introduce more exclusiveness to your apartment. Focus on branded design, unique furniture, etc.
5. Evaluate the role of seasonality
Rental prices can fluctuate depending on the time of year and seasonal events. However, economic and political movements in the world force ex-pats to look for a place with stable conditions. So, today, the number of potential tenants varies very slightly.
6. Include multiple services and amenities
Additional services and amenities, such as a pool, fitness center, or parking, can increase the property’s appeal to tenants and the rental price.
7. Offer more flexibility
Most people are searching for convenience in terms of payments and conditions for living. To make your apartment in Dubai resonate well with tenants, you can offer a more flexible payment system, short-term contracts, and better leasing conditions.
To maximize rental income in Dubai, you need to consider all of the above factors and adapt your rental strategy depending on market conditions and tenant needs.