There
are two ways to make a return on your investment. Capital growth which
is the amount your property increases in value from the time you have
purchased it and rental income, the amount of rent you can charge for
your property once it has been completed.
Capital growth in Dubai is currently running at approximately 30% with
some developments as high as 50%. For the purpose of our example below
we estimate growth at 20% over a 5 year period.
Investing in a serviced hotel apartment has a number of benefits, not least the potential to make a much higher return on your investment than investing in traditional buy-to-let overseas properties.
hassle free Dubai property investment without lettings or maintenance worries
up to four weeks personal usage per year
5* luxury apartment
regular rental income payments
full booking and rentals management
annual accounts are audited by an external accountancy firm
option to opt out of the management scheme
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The income you can expect to receive on your Dubai property depends on factors such as room rental rates and occupancy levels. Some developers guarantee minimum rentals, which range between 8.5 and 10.5% and extremely conservative estimates for profits for these serviced hotel apartments are easily 15%. This takes into account all management costs and building maintenance.
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