Top 5 Dubai Neighborhoods to Invest In

Hi, I'm GG Benitez, a certified international property specialist helping guide American and Canadian investors on the incredibly lucrative opportunities of Dubai. Today I have a very special guest on my show, my associate and partner here on the ground, Ahmed Ashak, to talk about some of the top areas in Dubai that you should have on your radar. This is season 2 of The Dubai Connect podcast. Hi Ahmed. Hi GG, how are you? Good, thank you for taking time out of your extremely busy schedule. As I know, this is a very busy time in real estate and has been for you here in Dubai. Good to be here, GG. Thank you for anything. Thank you, I appreciate it. I'm excited for us to talk about this because it's different than what somebody would find just by Google searching and we can get into that. What are the top areas that investors back in the United States and Canada should be looking to that are maybe either up and coming or still very hot based on investing, whether it's capital appreciation or rental returns right now? Good question, GG. I think you would agree with me on this one. Compared to what we've been talking to with our other investors in the US and Canada, if you go on Google search and look up the top five investment areas in Dubai, it will obviously show you Downtown Dubai, Marina, Arabian Ranches, Business Bay, and Palm Jumeirah. Now bear in mind, these areas, the reason they are on the top five is due to the type of investors that have come into Dubai in these last two years, which happen to be majority billionaires. As you know, in Dubai Downtown, for example, there's no land to launch or develop any new projects. So it's mostly falling into a resale market, same with Dubai Marina, same with Palm Jumeirah. So said that, it all comes back to what is it exactly your investor is looking to purchase with their bare minimum budget because at the end of the day, that's what our job is. You and I were supposed to tailor their portfolio. So said that, I personally feel that especially in this last three years we've been watching the market diversify. I'm talking about weeks, not months and years. Downtown could be the top most wanted area next week it's Expo City. Let's take Expo City for example. It all depends on which area is being more focused on by brokers. Because at the end of the day, I think us brokers, we are the ones who decide what sells or what should sell. I don't know if I'm going to be executed for saying this, but I think we as brokers are the ones who create the demand for a specific project. We're on ground. We meet people. We meet investors. We sit, eat, dine, and spend a lot of time with them. So we understand what it is that they're looking for and based on that we advise what to sell. So at the end of the day, in reality, if you think of it, we're the ones who create the demand. That is why it's very important what sort of brokers you work with, how experienced, and how long have they been in the market. A lot of newcomers, not to step on the new brokers that are coming into our market, there are some who are doing a great, excellent job. But then there are brokers who are just selling for the sake of a commission. Let's be honest about it. So it is very important to choose the right broker who has been through Dubai's history and knows how the market reacts every time a new community, a new project is launched in the market. Absolutely. That's where I believe we have such a great combination because you have been in the real estate market here for over 18 years. For myself, what I'm doing is utilizing your incredible knowledge and experience and also understanding the concerns and the questions on the ground. Since I'm based in California with offices here as well, I'm talking to the investors there and uncovering what are their objections, what are their questions, what are their concerns, and helping to answer all of those. And then being in touch with you, which is not only what areas have performed well but, even more importantly, which developers in those areas do you want to trust. For an example, when someone comes to us and says I want JVC, we're not selling them any off-plan project in JVC. We're only going to direct them to the ones that we have confidence in based on the knowledge they've delivered, their quality. And as well, since I am working with the Dubai Land Department, understanding who has the best profile, the best reputation, and so on. So with that, Ahmed, I'm appealing to American and Canadian investors, and we want to know for the next several months what are the top areas we should consider investing in based on its potential. Okay, well, GG, in the last three months, especially the last three months, the market has been extremely active and we could see a diversification in the market. As far as what type of investors are coming in, we're noticing that the Russians have slowed down. They pretty much bought everything that they wanted to. The upcoming areas where you don't hear much about, that's where all the action usually we see now, or we have been seeing, is one: Dubai Creek Harbor. That's number one. I love Dubai Creek Harbor. We have a separate, if we can go through each one of these real quickly. Dubai Creek Harbor, I have a couple of videos and blog posts and another longer form YouTube just showing it. I'm just enamored because I feel it's a little bit, I mean it's still in the heart of Dubai, of course. But for me it's a little bit away from the hustle and bustle, but yet you're on the water. You have the most gorgeous skyline, that iconic skyline view of the Burj Khalifa. The sunsets there are just magical. You did see that yesterday while we were there, just beautiful. And then it's just all these developing beautiful high-rises, all those cluster communities very close to the water, close to retail shops, close to restaurants. So Dubai Creek Harbor is an amazing master community, very hard to get your hands on. I mean we have seen that true. But GG, one thing investors need to bear in mind when it comes to Creek Harbor, you don't necessarily have to purchase an apartment, a unit that is facing the creek directly. A lot of investors are under the impression that the only way I will gain capital appreciation or higher rental ROI is if I only and only purchase something that is facing directly to the creek. When you are purchasing anything in Creek Harbor, you're purchasing it for the community itself, to be in the community. Correct. There's no doubt, of course, if you have a full creek view, there's no doubt you're going to get a higher capital appreciation. But then not everyone could afford to enter that price point to get that particular unit. To go back to what I was saying about the view, you're right there on the water. It's a walking experience. How beautiful the community, the atmosphere, the ambiance itself the community has to offer. After speaking to our investors in the US, I realized a lot of them hesitated to even enter Creek Harbor because they felt, okay, a creek view is too expensive for me. Let's look somewhere else. But they need to understand that no, you could own anything in Creek Harbor and it's going to have great potential. We've seen it already and it's considered the new downtown of Dubai. This is going to be great for short-term rentals, long-term rentals, and capital appreciation. It's being developed by Emaar, which is one of the largest and most reputable developers in the entire world. I mean, right when you come in and arrive at the airport, Emaar, Emaar everywhere is Emaar. They are known for the iconic Burj Khalifa, the tallest building in the world, and then the Dubai Mall, the largest mall in the world. It's hard to get your hands on a unit, but buy Creek Harbor. That is definitely a hot area. The second project I would compare very similar to Creek Harbor would be, which is in demand, Dubai Hills. You've been to Dubai Hills and you know exactly what I'm talking about. Beautiful people, once again, are under the wrong impression that the only way they will capitalize on buying anything in Dubai Hills is if they own an apartment or a house that is either facing directly to the golf course or it's facing directly to the community park, which is one of the largest parks. So said that, people, when they are buying in Dubai Hills, they need to understand they are buying in one of the most in-demand, family-oriented communities in Dubai at the moment. So if you could get your hands on anything, you should consider yourself extremely lucky. Previously, I've seen that we've lost a few investors because they were not able to get, for example, a golf course view or a direct park view. They decided no, I don't think that would be a good investment. Let's move on to somewhere else. That is a very wrong understanding of an investor when they think that way. Is Dubai Hills, do you consider it also great for short-term rentals or is it more long-term? Dubai Hills is definitely not, exactly. It's not a tourist destination. Still, long-term rental returns, projecting does very well. It gives you almost close to, around 8% on an annual basis. Capital appreciation, we've seen wonders in that area. And it will continue. And of course, I do have a separate video just to show. I want people to understand what we were seeing when we're driving through, how incredibly beautiful. And I think some very famous golfers actually own in that area as well. You're having an influx of sports figures that are purchasing in Dubai Hills. The third would be, as you know, there's been a lot of buzz going on. Dubai Islands by Nakheel. That's where a lot of buzz. We are going to start seeing a lot more than usual. So explain Dubai Islands geographically. Right across from downtown, correct? It is. It's connected to downtown, correct. Okay, then you have Dubai Hills, which is still part of the center of Dubai, right. Sure. And then now you're talking about Deira, which is now called the islands, correct. Which is called Deira Islands. That's just a little bit further north. It's where the old Dubai is. It's one of the parts of Dubai that I would say a lot of people do not visit. I do. You do. But a lot of people who prefer the glitter and the glamour, they haven't been to that part. For most of those people, the max they go as far as downtown. Anything beyond that, they don't think it's appealing or that's where they should be. I think that's why the developers had this vision: okay, now we need to divert most of these people to this part of Dubai. Because Emaar obviously has launched a great project over there in Port Rashid. And now Nakheel has come on board. It is building one of a massive community and island itself with all these different projects. I think this is the next best thing. It's definitely long-term. This is one of those where our listeners and viewers should listen to my previous episode that talks about the importance of an EOI, an expression of interest. Because you can go and Google and see what happened when they did the first set of launches of these townhouses. People camped out overnight. So you have global investors that already know who Nakheel is. Nakheel is known for Palm Jumeirah and they're known for Palm Jebel Ali. And now this third island area, Deira Islands. It's one of those situations where it's hard to get your hands on, but it's possible as long as we do it strategically through an EOI. Of course, of course. It's definitely long-term. So anyone who's looking into investing over there and expecting good capital appreciation within the span of three years, once compared, no, it's definitely long-term. This is definitely long-term because it's a massive community, a huge island that we're talking about. It's going right side by side next to three major developments: Emaar Port Rashid, then you have Maritime itself. Yes. So the entire infrastructure of that entire old Dubai, that part, is going through a massive re-development. You know it's not going to happen over time. Yes. So if you don't have the stomach for it to wait more than three years, I strongly recommend this isn't for you. It's not your cup of tea. Once again, we're coming back to that same ideal. The next one we're going to talk about is JVC, and that's not new. JVC has been correct. But it continues to be successful and it continues to show high long-term rental returns. It is considered a suburb. Yes. But how far is it from downtown Dubai? When we say suburbs, we were just having this discussion with the American mentality. Wow, suburbs way out there in the woods, an hour drive further down. No, it's not like that. When we say the suburbs, we mean the outskirts from the main hub. I would say, for example, if you would want to say between JBR to get from JBR to JVC, you're looking at 16 minutes. To clarify, JVC is Jumeirah Village Circle for those who don't know. It is more for people that are living here and long-term rentals. But still pretty solid for capital appreciation opportunities, of course. What is key though is to know which developers to invest in JVC because it is some of the most affordable opportunities in Dubai. But not all developers are made the same, especially for our first-time investors who insist on wanting to try and test the water with the least amount. JVC actually has been working wonders for such investors. Investors of ours where an average entry point for a one-bedroom would be around $250,000. People need to bear one thing in mind: the projects that are being launched today in JVC currently are delivering and providing some of the most updated, upgraded finishes and luxurious, beautiful finishing and fit-outs, state-of-the-art amenities. I mean, if you compare it to something that would be launched in, for example, in Marina with the same fit-out and finishing, for that particular one-bedroom, minimum you're paying close to three and a half to four million dirhams. And here you're getting the same thing, just not in the same area, for a million dirhams. I know you and I went into a showroom for one of these launches this week, and I could not believe it. I saw the look on your face, how shocked you are because you had this whole different perception about JVC. And especially because of the price point. True. For me, I was not truly expecting that. I walked in and I looked at the finishings and the quality and I'm like, this is absolutely incredible. Obviously, we don't always have the opportunity to present what a show apartment looks like. But I'm glad I was able to see with my own eyes. And again, it goes back to how important it is to work with brokers such as ourselves. You call yourself it's referred to as a broker, but for me, I'm a licensed realtor and a certified international property specialist. I'm not a broker. But in Dubai, we're called that. Yeah. That can help guide our investors on which developers, because you know, you can have a Motel 6 brand next to, let's say, a Hilton or Hyatt. They're both in the same area. Those are not going to provide you the same ROI. The other misconception, GG, a lot of people have about JVC: if they are not living in Dubai, they need to understand that when you're investing in JVC, you are not buying into JVC for views, right. Because we notice a lot of our investors in the US where the first question was, is there a sea view? Is there lakes around and so forth? So said that, people, when they are buying in JVC, they need to understand they are buying in one of the finest projects. The only views that we advise people to, for example, if they have that option, is if your building is facing a park, a community park. By all means, you definitely choose a unit that is facing out towards the community park because we have seen previously that the highest rental return and capital appreciation was given to those units that actually were facing either the community swimming pool, the community park, or just basic community amenities in general. So you're that's what you are investing in there for. It is definitely not an Airbnb community because I do hear some brokers out there advertising and lying to investors that it will do great in Airbnb. That's why we had a few of our investors who asked us how well would I do or how much in return will I get in Airbnb? And to be honest, no, it's false advertising. You know, this is one of the things that I love working with you about: when we have an investor and we're trying to help them strategize on where to purchase, we are not only particular about the area, we're not only particular about the developer, but you are extremely particular about the location of the unit within that development. Exactly. It's very important. I mean, it is incredible. Even when it comes to, let's say, sea view, you're particular about what floor you are on, based on where you sit and do you get the view. And so there's that extra touch that we have together for our clients to help guide them on the most strategic decisions for the max benefit. So that they continue to build their portfolio here in Dubai. I really respect that, GG. I'm sure I don't need to remind this to you: we're definitely not everybody's cup of tea. We've experienced what? I will give you a good example which took place recently. There was a client who basically came through your podcast and he had already invested in a few properties over here. When we were speaking to him and he mentioned the type of properties he had, they were the worst investment choices he could have ever made. When we mentioned that to him, he got extremely upset. That tells us that there are and there will always be investors who simply want you to tell them what they want to hear rather than what they should know. Yes. We ended up losing that client. He got upset and he said, I'm sorry, I don't want to deal with you or even give you my these properties to sell because everything I mentioned to you that I purchased, your criticizing that. So said that not everybody out there will appreciate your honesty. You see. But so be it. We rather stay that way and stick to our morals because that's what we are looking into: long-term relationships with our investors. Like we said, so in order to tell the client just for the sake of sale to tell them what they want to hear, it doesn't work with me personally. And so you're the same way. I think the benefit of us not also being in our 20s and 30s, we've done that with our careers. We have such a bigger vision with what we're trying to do. True, exactly. And that's where it's such a great complementary force that I believe that we are presenting indeed. Right. So great. So there was one more that I believe you wanted to mention, which I'm excited about. And I didn't get excited until I came and you said you're getting in the car. I'm driving you all around so you could visually see this. Because I had this conception that it was too far out. Exactly. That would be the Expo City. Yes. And just like yourself, I had no idea what I was dealing with until I was told by my CEO to physically drive over there to experience what everyone has been talking about. It was one of the best decisions. Dubai South was not my territory until I got to experience Expo City. That's why I insisted that you come along with me for the second time to experience the same feeling. Because Expo City is one of those places, unless you don't physically go there and walk around there, it's hard to visualize it. Right. It's hard. Like, even you, you keep hearing Expo, World Expo, Expo City. How is this now a residential community? It's way out there in the middle of the desert. So many different conceptions. And then it's so cute how they take you around, right. That's part of their transportation you call it a buggy. Yes, we call it, but it's a golf cart. Yeah, golf cart. Understanding that 24, I believe the number is 24 billion dirhams that went into Expo City, the building, the entire infrastructure. So the infrastructure is mostly built, which is the most expensive part. Usually, which is very rare too, because most communities first start launching and selling the residential buildings and then they start working slowly developing the infrastructure. Where this already has 30 restaurants that are operating. It already has, I mean, the convention center that's there, it already has entertainment, gyms, and so on, already happening. Yes. You have a metro that drops it right at the entrance of your community. How, and you have these little bikes and the little, it's a pedestrian-only city. Exactly. It is a sustainable living. It's really beautiful. Excuse me. It is based on His Highness's vision. It's part of his legacy that he wants to leave, a sustainable city. Even little touches about how the homes, the rows of homes, one row is created and built a little bit at different levels to control the temperature and the solar. I mean, there's actually we did a video, yes, and it's on my YouTube channel as well. So we got into that little buggy and just were driven around to be able to finally visually showcase. And then we did some of the show apartments and show villas. Oh, my goodness, how beautiful. You're going to have visitors there. You're going to have people visiting the convention, which is going to be now taking over as the busiest convention center. Exactly. They have built two of the largest exhibition centers inside over there, right, which from what I've heard is that they're planning to move all the future exhibitions. The exhibitions that will take place in Trade Center will be diverting all over there. So that's short-term. Then you have the base of so many different headquarters like Siemens, Emirates, and so on. So you have, which are already operating over there. If people are not aware, then you're talking about long-term rentals for people that are working there and can just walk there. Commercial retail. You're closest to what's going to be the largest airport in the world. So when someone says, oh, it's too far out. What is it, 17 minutes to the Marina? Spots around that. Yeah, okay. That is another really exciting investment opportunity, specifically for capital appreciation, short-term rentals, long-term rentals, and being able to leverage the least amount of investment because of that extremely attractive payment plan. Which is based on the fact that this is a government project that's not necessarily looking after profit margins, but it's looking after their brand. It's something that's passionate for them. Being a government project, you need to bear one thing in mind: this particular project, this particular community, will be an ongoing branding for as long as it exists. Because it's Sheikh Muhammad's personal, it's his baby, you know. So it will be a global branding, unlike other projects which we discussed previously. Once the project is sold out, they forget about it, they move on, start promoting the next project. But that will not be the case with Expo City. Expo City will be forever and ever, you know, because they keep expanding. So much is happening and so much is planned for the future over there that it will definitely be a global branding, which is very good for our investors. So to wrap this part of it up, as far as what's in Dubai, and then I want to touch upon one more place that's outside of Dubai, I believe that these are constants right now for the near future. There will be additions because we don't know. Clearly there's always building. There's always something. We, I mean, we get one week notice. That's something we're not able to catch up with the demand, GG. Exactly. To answer a lot of people's questions: are we over-supplied? I mean, people don't understand who don't live in Dubai to see what's happening and taking place in Dubai. I mean, last year we had 60,000 families that migrated to Dubai. That's a huge number. So imagine when people say supply versus demand, we're going to be over-supplied. How is that possible if each developer is launching a high-rise tower with 250 units? And then you have 50, 60,000 people migrating to Dubai? It's not enough. How are we meeting that demand? And remember, that Dubai operates like a business. So you have RERA and the Dubai Land Department and the government working with these developers about when they can launch. So there's that constant, Dr. Mahmoud Al-Bahar, that I had on here, a senior adviser for the Dubai Land Department, said that there's this constant balance that they are strategically creating, of course, to ensure that there's not so much demand and such little supply that it's unaffordable. But that there's just enough to keep the people that are moving there and investors satisfied with the opportunities here in Dubai. So I think for right now, these are great places to focus on until you and I have access to more information about what may be in the future. But what is the one place just outside of Dubai that is also an incredible investment opportunity? Your favorite, of course. Ras Al Khaimah, Marjan Island. If we just talk a little bit about this area, right, you have these clusters, four clusters. It is an emirate, and it's about 45 to 50 minutes from by drive. But they will eventually have their own airport, I believe, right. It is the site. Marjan Island is the site of the first and only approved gaming casino in the entire GCC. Reason the win. It's a four billion dollar casino that is already broken ground. And then you have these internationally renowned hotel residential brands that are building these residential investment opportunities that are going to be incredible investment opportunities right next to the win. This is again where it's important to know which developers. Some will be trying to attract a more higher clientele and not allow short-term Airbnb. So if that's your goal, we know how to direct you there. Exactly. Some are, it's going to be great for short-term Airbnb and beach club vibe and attracting the Europeans that are going to be coming here. If that's your goal, we can help direct you there. But right now the prices per square foot are even less. Of course, they're extremely affordable at the moment. So if people are taking their time and they cannot make that decision to enter right now, trust me, they'll be paying a lot more per square footage than what they are going to be paying right now. One of the biggest decisions people need to make, if they want to decide to invest in Ras Al Khaimah, is whether do they want to go with a branded project or a non-branded project? Because, of course, there's going to be a price difference. You know me. I always believe if you're going to go with a branded project, it has to be a hospitality brand, what they specialize in. I don't believe, and I apologize for saying that, I don't believe in selling residentials that are associated with auto brands, jewelry brand. Those are very successful right now. Don't get me wrong, they are successful. But I feel, for example, if if that particular building is not running on a Lamborghini engine, then I don't see the reason behind why would you pay an arm and a leg basically for a brand associated with such brands. But with the hospitality brand, we're looking at a history. That's what they specialize in. They know exactly what needs to be done to make that project successful. They know exactly how to market that product out there globally. They know exactly what the guest is looking for once he just steps inside the lobby. That first impression is always the last impression. So they look for these details. I myself, I'm a very detail-oriented person coming from a hospitality background. I mean, at the end of the day, that's what my major was. I worked for the Grand Hyatt for almost since I was 17 years old. So we have that eye for it. These developers who are launching and marketing these hotel hospitality branded projects is definitely a win-win situation for me, jackpot. Thank you, Ahmed. I believe we covered a nice array of information with regards to where our investors should be looking at right now. Definitely. With that, I will say that this is the time to reach out to secure your expressions of interest and to help us help you with regards to strategizing your investment portfolio here in Dubai and the greater UAE. If Ras Al Khaimah is on your radar as well. So please make sure to like, subscribe, follow, and stay tuned for the next episode of The Dubai Connect podcast. This is season two of The Dubai Connect podcast.