Short or long-term rentals
If you have bought an apartment in an off-plan project, and the building has already been handed over and you have the keys, next, you need to decide whether you want to rent out your property for the short or long term.
The average return on investment (ROI) for long-term rentals in Dubai is 5-8% per annum. For short-term leases, the ROI can reach 11-13%. However, each format has its own nuances.
According to senior real estate expert, Aram Grigoryan, “a lot depends on what kind of property you have and where it is located. An effective solution is to rent out a small studio apartment or one-bedroom apartment in developed areas with tourist attractions. To do this, you will need to register with the Dubai Department of Economy and Tourism (DET). Please note that in some projects, especially in buildings that are managed by hotel brands, there is a ban on short-term rentals”.
If the apartment is situated in a developing area, it is better to rent it out on a long-term basis. However, each case is different, so it is best to consult with your real estate agent who knows the local market well.
It is important that you only work with trustworthy companies and brokers that are certified and licensed by the Real Estate Regulatory Agency (RERA).
Consultants from top agencies will assist you, not only at the time of concluding a sale and purchase agreement but also during the construction of the project and when issuing keys. If you wish, you can easily rent out property without coming to Dubai.