Dubai’s reputation for high-end real estate makes Dubai beach front communities stand out even in the crowded market place. Typically, those buying into Dubai beach front real estate are looking for a combination of lifestyle, exclusivity and long term value. It is really quite simple. When you live just a few feet away from the ocean, your daily experience is unique and nothing like what you would have if you were living inland.
In addition to having views of the open water and being able to walk directly onto the beach, owners of Dubai beachfront apartments or villas also have resort style amenities at their disposal. Many residents take morning strolls along the shore line and take in the beautiful sunsets from their expansive balconies. There is something special about being so close to the water that is hard to describe. This is one of the many reason why Dubai beach front developments remain very popular and always in demand.
Why Dubai Beachfront Living Attracts Investors and Homebuyers
As an investment opportunity, Dubai beachfront property tends to do very well as there is limited supply of coastal property available. Because of the fact that developers can never build limitless amounts of shoreline, it helps protect the long term value of Dubai beach front units. As a result, Dubai beach front units usually rent for a higher dollar amount than similar sized units located further inland.
There are several Master Planned Districts in Dubai that make up the essence of Dubai beachfront living. These include; Palm Jumeirah, Dubai Marina, and Emaar Beach Front, all of which are self contained neighborhoods offering residents high rise living, shopping, dining and recreational activities within walking distance of one another. Each area offers a different type of living experience. Palm Jumeirah emphasizes the importance of seclusion and villa living while Dubai Marina is known for a mix of high rise living and marina promenade walking experiences. Emaar Beach Front, on the other hand, offers a modern, upscale residential environment with access to the shoreline and new state-of-the-art infrastructure. Before making a choice regarding which community to move into, prospective Dubai beach front purchasers need to compare their lifestyle expectations with their financial objectives.
Access to Workplaces and Roadways
In many of the Dubai beach front communities, there are strong transportation linkages to major business areas, such as downtown Dubai and Dubai Internet City. In many cases, professionals working in these types of workplaces can drive back to their coastal residences in under 30 minutes, allowing them to achieve a good balance between work and relaxation in their Dubai beach front rental.
The ability to travel between work and a quiet coastal residence is highly attractive to corporate renters who are willing to pay a premium to be able to experience the best of both worlds in terms of their housing needs.
Financial Strength of Dubai Beachfront Property
While Dubai beach front property is typically priced higher than inland properties, the premium reflects the lack of coastal property and the demand for such properties by international investors. Global investors continue to see Dubai beach front real estate as a secure investment vehicle within the region.
International buyers are permitted to own freehold property in designated zones of Dubai, providing them with the right to buy Dubai beach front property and the right to sell it at some future date. Additionally, there is no annual property tax in Dubai, which increases the attractiveness of Dubai beachfront real estate as an investment vehicle.
Investors, however, need to go beyond the view when evaluating Dubai beach front investments. They need to understand the level of service charges, maintenance requirements, and the reputation of the developer to ensure they are investing in a property that will produce a profit. In general, well managed Dubai beachfront buildings will produce better profits than poorly managed buildings with high maintenance fees.
Rent Yields and Appreciation
The short-term rental yields in Dubai beach front communities can benefit greatly from tourist traffic during the winter months and from people who come to Dubai to visit friends and family. On the other hand, long-term leases in Dubai beach front communities are generally stable, due to the consistent demand from expats and families who relocate to Dubai. Long-term appreciation of Dubai beachfront property is also supported by the limited supply of shoreline property in Dubai, which limits the number of new developments and drives up prices in established coastal communities.
Building a Smart Purchase Strategy
Every buyer does not approach the purchase of Dubai beach front property with the same goal in mind. Some buyers want to personally use their property and want a specific lifestyle. Other buyers want to maximize their capital gain or generate a steady rental income. If a buyer has defined his/her objectives, it makes the decision process much easier.
An example of how this works is a comparison of a studio unit in Dubai Marina versus a larger unit in Emaar Beach Front. An investor must compare the type of tenants that would be attracted to each community, the rental rate each community would receive and the cost of services (such as cleaning and repairs) associated with each community. A family considering purchasing a villa on Palm Jumeirah would likely be focused on the issue of privacy, the size of the property and the long-term comfort of the property. A structured decision process eliminates the emotion associated with a purchase decision.
Professional Advice for Investing in Dubai Beachfront Real Estate
Keyspace Realty and Keyspace Dubai assist our clients in understanding the Dubai beachfront market utilizing clear analysis and verifiable data. We analyze the characteristics of the coastal communities, review historical pricing and compare payment plans prior to recommending a particular property. Unlike other realty companies that promote listings individually without giving consideration to the client’s financial situation, long term objectives, or investment horizon, we connect each Dubai beach front property to the client’s budget, financial objectives, and investment horizon.
We also assist our clients in coordinating with mortgage advisors to ensure that approved loan amounts correspond to suitable Dubai beach front properties. Our process is designed to eliminate unnecessary risk and save valuable time. When investors are considering expanding their portfolio, we review demand for rental units, planned infrastructure expansions and anticipated resale values for key coastal communities, to ensure that each Dubai beach front property purchased supports quantifiable and strategic growth.
When comparing Dubai beach front property with inland property, we provide transparent comparative data relating to rental yields and appreciation projections. By relying on verifiable data to support each of our recommendations, we enable our clients to feel confident and structured in their decision to acquire a Dubai beach front property.
Dubai beach front living continues to be an attractive proposition for both homebuyers and investors alike, as it represents a tangible and measurable financial advantage combined with a lifestyle improvement that is experienced on a daily basis. With the proper strategy and guidance from professionals, buyers can purchase a Dubai beach front property that generates both satisfaction and long term financial advantages on Dubai’s most desirable coastline.
Frequently Asked Questions
Are Dubai beach front properties suitable for long-term investment?
Yes. The scarcity of coastal property and the consistent demand for it from international buyers contribute to long-term appreciation and rental stability.
Are Dubai beach front homes only for luxury buyers?
While many of the developments in Dubai beachfront communities are in the luxury category, developers offer various unit sizes and payment plans. Some entry-level apartments in emerging beach front developments may offer a more affordable alternative.
What costs should I consider prior to purchasing?
Prior to making your purchase, you should consider service costs, maintenance requirements, the reputation of the developer, and the financing terms. A thorough evaluation of these items will help to protect your returns on your investment.
Can foreigners buy Dubai beach front property?
Yes. Dubai permits foreign ownership in designated freehold areas of the city, including many beach front communities.
