Invest in Dubai Palm Jumeirah Apartments

Invest in real estate if you can. Shelter or housing is a basic need, so there will always be a demand for rental properties. Invest in several apartment units, and you can earn a sizable rental revenue per month. After several years, you may also sell your property at a significant profit.

If you want to invest in the Dubai property, consider apartments for sale in Palm Jumeirah.

Palm Jumeirah in Dubai is one of the most popular human-made islands in the world. Part of its fame comes from its palm tree design that added 56 kilometers to the Dubai coastline. It’s also remarkable for its size; it remains one of the largest human-made islands in the world.

Its fame alone makes it worthy of any property investor’s attention – but that’s not all it offers. It’s home to renowned hotels, restaurants, shops, and entertainment brands. Its residential and commercial communities are equipped with top-of-the-line facilities and amenities. Indeed, Palm Jumeirah is an excellent address for anyone who wants and expects only the best of the best.

Palm Jumeirah is in demand not only among residents but also among tourists. If you own an apartment in this area, you can be reasonably sure of rental demand. You can rent to residents who want a Palm Jumeirah address, or a property management company can turn your apartment into a short-term rental for tourists.

You can invest in ready apartments or buy off-plan properties in Dubai. Either can work, and you can also combine both strategies. Buy some ready and others off-plan.

Buying Ready Apartments

You have numerous options if you want to buy ready-to-occupy property. Here are a few of them:

• The Grandeur Residences: Maurya, Mughal

• Oceana: Oceana Pacific and Oceana Atlantic

• Shoreline Apartments: Al Hamri, Al Habool, Al Haseer, Al Hallawi

• Royal Bay by Azizi

Why buy ready property instead of off-plan? Here are a few good reasons:

• Immediate availability: You can start renting out the apartment right away after purchase. This means you can quickly generate investment returns.

• Seeing before buying: You can inspect the property before purchasing, which allows you to evaluate its condition accurately, location, and surroundings.

• Availability of neighborhood data: You can check out the neighborhood, assess its strengths and weaknesses, and identify opportunities and risks. You’ll have the information to make a wise investment decision.

• Potential to generate instant equity: Create instant equity if you snag a property below its market value.

There are also downsides to investing in ready properties. Since they’re ready to occupy and located in neighborhoods with developed amenities and facilities, existing apartments sell at higher prices than comparable off-plan alternatives.

Additionally, they may need to be renovated, re-outfitted, upgraded, and maintained. These can add to the cost of investment.

There’s also the risk that any of the newer developments would cause a drastic change in the valuation of ready properties. For instance, a property that used to enjoy spectacular sunset views could lose that advantage when newly built apartment complexes obscure those views.

Buying Off-Plan

The construction of apartment complexes and residential communities is still ongoing at Palm Jumeirah. The following are some off-plan investment options:

• Serenia Living by Palma Development: penthouses and sky mansions

• ORLA Infinity by Omniyat: apartments and duplexes

• Armani Beach Residences by ARADA: apartments and penthouses

• Ocean House by Ellington Properties: apartments and penthouses

• Como Residences by Nakheel: apartments

• Palm Beach Towers by Nakheel: apartments and penthouses

Why buy an off-plan property when there are ready apartments you can purchase instead? The following are some advantages of buying off-plan:

• Greater value: Off-plan properties are not necessarily inexpensive, especially if they’re part of high-end developments like the ones listed above. However, buying off-plan can give you greater value for your money. The property prices in these developments will only increase upon completion, so buying off-plan means you can purchase an apartment at a lower cost than it will sell for later.

• Capital appreciation: Off-plan property prices typically increase over time, and the value of off-plan properties increases even more after completion. Buy early and benefit from that capital appreciation.

• Customization: You have more room to customize your floor plan and choose your preferred finish on off-plan apartments. Want white statuario marble floors? You can have it. You can even have custom indoor landscaping done if you want. You don’t have the same amount of control (at least not without a significant cost) when you buy a ready-to-occupy apartment.

Buying off-plan is not without risks. Construction issues, which are not uncommon, can set back completion dates, which will postpone your plans of renting out the property and, thus, delay returns.

Additionally, while models and plans can give you an idea of what your apartment will look like once completed, the result may not meet your expectations. This applies to the entire complex. You don’t really know for sure how your apartment and neighborhood will turn out until after everything has been completed.

Suppose you want to invest in a ready Palm Jumeirah apartment right now. How much should you expect to pay, and what types of rental revenue can you expect?

One-bedroom, two-bathroom furnished apartments over 1,000 sq.ft. are selling for more than AED 2.5 million. Sea-facing furnished apartments of about the same size are AED 1 million more expensive.

Apartments with premium views are more expensive. For instance, a two-bedroom, three-bathroom, 1,709-square-foot Oceana Pacific apartment is selling for AED 6.1 million, approximately AED 3,569 per sq ft. In comparison, a one-bedroom, one-bathroom, 1,882-square-foot Oceana Atlantic apartment is selling for approximately AED 1,992 per sq.ft.

How about revenue? Rentals provide good returns. The best returns come from studio-type units, with an estimated return on investment (ROI) of a little less than 8%. One-bedroom apartments, meanwhile, have an ROI of around 5%.

Investing in real estate can lead to residual income from rental yields and gains from capital appreciation. Palm Jumeirah is a premium neighborhood and an excellent location for property investors in Dubai.

In Palm Jumeirah, you can choose ready apartments or off-plan properties. Choose the former for immediate returns and the latter for the best value. Consider buying studio and one-bedroom apartments since they currently offer the highest rental yields among all apartment types.