Downtown Dubai is now set to deliver some great returns, and this is our focus. It’s an area that is pretty much fully developed, around the Burj Khalifa, Fountain and Dubai Mall and sits next to the DIFC (Dubai International Financial Centre). The supply of new apartments in Downtown will tail off and disappear over the next 2 years as construction finishes.
This supply is keeping prices low at the moment, but this does make current rental yields attractive. Our research and insight lead us to conclude that once the supply of new units in Downtown finishes and it becomes a market of reduced supply comprising re-sales only, there will be opportunity for considerable capital appreciation. It is probably a 5 to 10-year exit plan to maximise growth with interim rental income