In 2Q 2023, investors bought £20 billion ($24.7 billion) worth of property in Dubai. It’s 54% more sales than the same time last year.
Houses are one of the most sought-after types of real estate Dubai has to offer. Not only do they tend to be appreciated more than apartments but also they provide benefits like access to the beach and a sense of privacy that other properties options lack.
Whether you want a vacation home or you are just looking for passive income, investing in a beach house has always been a smart move. In this article, you will learn about five main reasons you should be putting your money into beach houses.
1. Unique Location Instead of the Usual Ones
The beach is a unique sunset or sunrise venue for nature lovers. A house on the beach provides a convenient place for enjoying activities like swimming, walking by the sea, sunbathing, and water sports. Beach houses also offer a chance to relax and escape the hustle and bustle of day-to-day life. It can be a place where your family can create long-lasting memories.
Dubai offers various beach neighborhoods with all kinds of houses to choose from. Some houses share a community swimming pool or have private pools and yards. Location matters based on amenities offered. Here are a few beachfront house communities to choose from:
- Jumeirah Bay Island
- Palm Jumeirah
- La Mer
These areas are filled with world-class restaurants, private beaches, water parks, movie theatres, supermarkets, and medical facilities. Residents get to take advantage of them, often at a more favourable price than tourists.
2. Different Rental Options
Some people buy a beach house as a second property or vacation home. Unlike traditional long-term rentals, vacation rentals offer more flexibility. During the times that you are not occupying your beach house, you can make it available for short-term stays.
With Dubai’s bustling tourism industry, there are always people looking to visit the beach and stay in comfortable accommodations. By using online platforms like Airbnb, you can rent out your house to a global audience. Travelers from around the world can discover and book your property. It creates a unique opportunity to generate passive income.
3. Increased Demand
Over 8.5 million tourists visited Dubai in the first half of 2023. Together with Dubai’s rising population, it creates a higher demand for rental properties like houses. The city’s up to 6% rental yields ensure a steady stream of rental income for investors.
People’s desire to spend quality time near water boosts a constant demand for beach houses. The price of a beach house increases yearly as there are more buyers than sellers. If you are considering reselling your property, there is no better way to get a high return on investment than buying a house by the beach.
4. Constantly Increasing Value
Dubai’s real estate market has been steadily growing with no signs of slowing down as it’s predicted to show 15% growth in 2024. Investing in property is a go-to choice for most people with money.
To start your real estate investment journey, you might want to consider buying a beachfront house. The prices can hurt your pocket at first, but returns on your investment might be worth it. Major tourism hubs like Dubai have no shortage of tourists willing to spend their money on a holiday by the beach.
In 2022, prices for houses in Dubai increased by over 12%, which is almost 4% more than apartments. Beach houses take longer to build and are in higher demand due to the limited number of properties you can build by the beach. It’s a perfect long-term investment asset. And even if you decide to sell in a few years, you will be able to do so faster and for more money than you would by selling an apartment.
5. Stable Rental Income
Having a house by the sea equals a source of steady income. Higher demand for beachfront houses translates to higher rental rates. Renting out your beach house provides you with an opportunity to pay your monthly taxes and costs on the property and possibly earn additional profits.
Homes with a water view are more likely to interest people looking for a property to rent in Dubai. If you are interested in long-term tenants, your chances of finding them will be higher with a beachfront house.
Additionally, Dubai has multiple investor-friendly policies. For example, Dubai has no personal income tax or capital gains. It means that what you’ve earned is 100% yours.
Beachfront houses are one of the best property investment options in Dubai. Due to their limited number and access to luxury amenities, Dubai beach houses provide an elite experience of owning a property near the sea. Beach houses are an ideal pick that will only appreciate more with time, whether you are looking for a permanent residence, vacation home, or investment opportunity.