If you are looking to make a lot of money in Dubai as a landlord, then perhaps you should lease villas. There are many different types of villas for sale, each with their own drawbacks and benefits. Leasing villas in Dubai will bring in more money for you per month as your tenants pay their rent.
However, since villas are the more luxurious and exclusive buildings, and often host an entire family instead of just one person, you will have to be at your best as a landlord. This means being very responsive to your tenants when the building needs to be maintained, collecting rent in a polite manner, and building a positive reputation so that others will want to rent from you.
If this sounds like something you can do, read on to discover three types of villas for sale in Dubai.
The first type of villa for sale in Dubai is an end unit. End units are one of the smaller units and are about 2,700 square miles in area in the building, to a total of around 3,080 square feet for the size of the entire plot. These units will usually come with two garage parking spaces, a spacious kitchen, and 3-5 bedrooms.
An end unit will cost more than AED 2.6 million and can be rented for AED 185,000 per year. This means that it will take you fourteen years for you to recoup your initial purchase. Thus, we recommend that you also have smaller, cheaper apartments as well as this type of villa to shorten the time that it takes to recoup your investment.
The second type of villa for sale in Palm Jumeirah is a corner unit. Corner units are one of the larger units and are about 3,080 square miles for the building, and roughly 5,489 square miles for the entire plot. Rent can be higher than the average in this type of unit because it is larger. Corner units come with 4-6 bedrooms, space for two cars in the garage, and a spacious living room. The fact that it is a corner unit also gives the tenants some added privacy.
A corner unit will cost anywhere from AED 1.1 million to AED 9.7 million and are rented for AED 250,000 to AED 1.5 million in annual rent. Obviously, the higher the rent, the more luxurious the villa will be and the higher it will cost to buy a villa for sale in Dubai. You will have a minimum of five years and a maximum of just under 38 years to recoup your initial purchase. A more realistic range is between 5 years and 7 years to recoup your initial purchase.
The final type of villa for sale in Dubai is the single row unit. Single row units are the largest of these types of units and are over 3,800 square miles in area for the building, and roughly 6,500 square feet for the entire plot. Rent will be the highest of the average rents for these three types of villa because it is the largest. Single row units come with 3-6 bedrooms, multiple balconies, and a large front yard.
A single row unit will cost anywhere from just over AED 1 million to just over AED 8.4 million can be leased for AED 650,000 to AED 230,000 per year. This means it will take under 2 years almost 13 years to recoup your investment if you used the maximum rent price, while it would take just over 4 years to almost 37 years to recoup your investment if you used the minimum rent price. A more realistic estimate is that it will take somewhere between 3 years and 25 years to recoup your initial investment. Naturally, your rent cost can come down for the least expensive properties and will have to go up the more expensive the villa is that you buy.
As with the end units, we recommend that you buy and lease some cheaper apartments to save time to recoup your investment if you purchase a more expensive villa for sale in Dubai.
End units, corner units, and single row units. These are three types of villa that are available to purchase and then lease in Dubai. This villas for sale in Dubai require time and effort, but through building your rapport with clients, giving yourself a positive reputation as a landlord, and through ensuring that you repair the units in a timely manner, you will be a successful landlord when leasing these units.