Nombasa Mawela and Samuel Seeff encourage South African investors to invest in Dubai property and take advantage of the booming rental market
Samuel Seeff, the chairman of Seeff, highlights Dubai as a leading destination for property investments on a global scale. With its high occupancy rates, fueled by a scarcity of available rental properties, the city has been delivering stable rental yields ranging from 4% to 8%.
Further underlining this growth, the Dubai Land Department reports a significant 33.8% increase in total property transactions, both in volume and a 36.7% rise in value terms over the last year. The rental sector experienced a 23% boost in the third quarter alone, with a staggering 119% jump in rental inquiries. Sales of villas and townhouses have also seen a notable increase of 34%, with the secondary villa market experiencing a 38% uptick in sales.
Invest in Dubai Property: What You Need to Know
Nombasa Mawela from Seeff Dubai is positive about Dubai's property market prospects for 2024, especially for South African investors. She emphasises that this year is an ideal time for investors to diversify their property portfolios for enhanced returns. The market offers excellent off-plan developments geared towards rental investments, coupled with attractive financing options.
The rental market in Dubai encompasses a mix of short-term rentals, driven by the city's strong residential rental market and popularity as a tourist destination; Dubai Tourism's report shows about 15.37 million visitors from January to November 2023. The market’s stability is also underscored by high lease renewal rates.
Why Invest in Dubai Property?
Firstly, there's significant financing flexibility, with options including mortgages that cover up to 75% of the purchase price. Developers also offer flexible payment plans that can extend up to five years, adding to the ease of investment. The entry-level prices in Dubai's property market are another appealing factor, being competitive and comparable to the upper-middle-class and luxury sectors in South Africa.
Another major draw is the opportunity it presents for offshore investment. By investing in Dubai, South African investors have the chance to shift funds into a highly lucrative market. The strong rental returns are a key highlight, as they have the potential to offset a significant portion of the initial investment cost.
The investment in Dubai property opens up a variety of future options. Investors could choose to sell their property later, consider relocating to Dubai, or even explore the possibility of acquiring a second passport. This last option is becoming increasingly popular among South Africans, adding another layer of appeal to the Dubai property investment opportunity.
Popular investment options include:
- AnMag 330 in the City of Arabia is priced from approximately R5.5M (AED1,078M) for a one-bedroomed unit, 50% payable over two and a half years, and the balance after handover over a four-year period, return on investment (ROI) of 14.1%.
- Merce House by Ellington in Uptown Dubai is priced at approximately R13.4M (AED2,6M) for a one-bedroom unit. The down payment is 20%, the payment plan is structured, and the rental yield is 6%- 8%.
- Armani Beach Residences in Palm Jumeirah is priced at approximately R25.9M (AED5M) for a two-bedroom unit, with a 25% down payment, three-year instalments and a rental yield of 5%- 8%.
Did you know? Nombasa Mawela is coming to Cape Town on the 7th and 8th of February. She will be available for one-on-one sessions with aspiring property investors. This is your chance to discuss potential investments and get advice directly from an industry leader.
To secure your spot with Nombasa, simply email info.dubai@seeff.com. For any further enquiries or to speak directly with Nombasa, feel free to email her at Nombasa.mawela@seeff.com or call +971562440585.
Alternatively, you can contact the office at +97148746556 or +971562440585.
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