Dubai Real Estate: In which type of units you should invest!
– Hi guys, my name is Denis, and I am a real estate agent in Dubai. – Today in this video we’ll discuss with you different types of investment in the property, – like investment in the studio, one bedroom, two bedroom and bigger units. – This is quite a common question and it’s usually asked by the people who can afford to buy a big unit. – So they are thinking, should they take several small units, or one big unit. – Obviously if somebody can afford only a studio they just go ahead with the studio. – But anyway, let me share with you some of my ideas regarding the different types. – So let’s start with the studios. – Investment in this type of units is very common on the market. There are a lot of transactions, a lot of people are buying studios. – One of the main reasons it is because there are way more people who can afford a studio or – the one bedroom, two bedroom and three bedrooms. As usually studio offers a higher return from the rent than any other types. – So the smaller the unit the higher ROI. – Basically this is kind of ?? on the market. – But, studio as well has the highest price per square foot. And as I said as there are way more people who can afford the studio, – it’s quite easy to sell it in case if you want to exit. But you will ?? it to the investor as well. – We will discuss other options later on. – The next option is the one bedroom. – It’s kind of similar with the studio. It has a good ROI, not that bad price per sq. ft. – and as well there are way more people who can afford and one bed rather than bigger units. – So there are quite a lot of transactions in this segment as well. If your budget allows you to purchase a one bedroom apartment – maybe it’s good to purchase a one bedroom apartment. But, if you can buy two studios – maybe it’s better to consider to studios as an option. – The next type is the two bedroom unit. And the main difference with the previous ones is that – over here you as the seller will have for one more option in terms of the buyers. – So with the studio and one bedroom you will sell the unit mainly to the investors. There are not so many end-users who are buying studios and one beds. – Mainly it’s Investors. Obviously, there are people who buy for themselves studios and one beds but not that many. – So with the two bed you already can consider an end-user as your buyer. – So what does that mean to you if you are the seller and you have an option to sell it to the end-user. – As usually end-users are ready to pay more than investors. – So investor will try to reduce the price and make it very reasonable for him in terms of the numbers, – how much money he can get. While the end-user if he likes the apartment, – most probably he will be ready to pay a little bit more. So it means you can get a better return in terms of the appreciation. – So for two bedroom we have a new player on the market and end-user. – I can’t say that return from rent in the two bed is significantly lower, but it is slightly lower. – But here as I said you can potentially get a better appreciation. – So let’s move to the next type and it’s a three bedroom apartment. With the three bedroom apartment, you will have – more end-users and less investors who are interested in this option. And most probably you will sell it to the end-users. – This means that you can get a very good appreciation once again. – But the audience to whom you can offer it will be way smaller than – the two bed and one bed and big audience of the studios. – This is something that you need to consider as well. – One of the very interesting segment of the three bed options is the townhouses. – As we can see there are very good examples on the market where people who want – properti in off-plan as three bedrooms got a very good returns from it. – So the next option that we have are four bedrrom, five bedroom and six bedroom, villas, apartments etc. – This is something that I don’t really recommend for the investment. Obviously, if you are an end-user and you are buying for yourself, please go ahead. – This is something for your personal use. But for the investment – I think an investor should stop on the three bedroom option, maximum on the four bedroom in some exceptions. – But it doesn’t mean that people who bought a four bedroom can’t make money on it. – A very good example is the Palm Jumeirah, where the ?? home villa, – initially the price over there was 2 mln +, but now they’re selling for 12 mln + – So you see there is a significant appreciation, and there are not too many apartments that are performed that well. – So, I hope, I explained to you the main difference between the different types of the units. – As an investor, I would advise you to focus on studios to the three beds – or depends on your budget, on your target, on your strategy as well. – Again, it doesn’t mean that fits each and every project. You need to evaluate it. – You need to speak with your agent and try to find a best option for you that will fit your strategy and your investment plan. – So if you have any questions, please feel free to get in touch with me. I hope this video was useful. – Thank you for watching it, please don’t forget to hit “like” under this video. We’ll stay in touch. All the best! Goodbye.