What are serviced apartments?
Serviced apartments combine the features of a residential unit and a hotel room. They usually come with all the necessary amenities of a standard apartment such as a separate bedroom, kitchen, and laundry; while also having access to luxuries synonymous with top-rated hotel chains, such as health and wellness centers. For tenants, stays in serviced apartments can either be short- or long-term.
Benefits of investing in serviced apartments
Guaranteed rental income
Serviced apartment operators will put the risk of no vacancy on themselves, in addition to offering the property owner guaranteed rental income by leasing it for a fixed price. For the property owner, this eases the hassle of solving for long periods when the unit is not occupied.
Potential higher returns
Most serviced apartments are offered at a fixed price to the property owner, so a higher return is possible. The average yield of a serviced apartment tends to exceed 6% in many major cities including Dubai, which is higher than traditional rental properties.
No maintenance or repairs by the property owner
No need to get your hands dirty with maintenance or repairs when you invest in a serviced apartment. The maintenance and repairs are carried out by the property management company, as well as answering tenant complaints, which means fewer responsibilities as the property owner.
Low involvement
From not worrying about maintenance, tenant sourcing, cleaning and even the arrival and departure of guests, owning a serviced apartment will tend to truly mean low involvement yet peace of mind.
Interested in buying a serviced apartment?
Provide us with your details and our team will reach out to find you your ideal serviced apartment.
Risks in investing in serviced apartments
With every investment comes some risks and this is no different with serviced apartments.
Rental yields and property prices vary according to the area market. That’s why it’s important to make sure to do ample research and choose the right option for your investment plan.
Serviced apartments tend to deliver lower capital gains so they tend to be ideal for investors more concerned with high rental returns. When it’s time to sell, the next property owner is likely to be an investor, therefore the buyer demand might be lower.
Factors to consider when buying a serviced apartment in UAE
Before signing a contract and paying the initial payments, there are a few factors that are important to consider when searching for your ideal serviced apartment investment:
The location is crucial in ensuring occupancy and in turn, delivering good returns. Serviced apartments located in high-traffic or tourist destinations tend to perform better.
While having access to plenty of amenities, it’s important that the building facilities are of high quality and up-to-date, meaning that they will be beneficial enough to the intended tenants to trigger interest and occupancy, both short- and long-term.
So, are you intrigued in learn more and possibly investing in a serviced apartment? Reach out to our team today and we’ll help find the perfect serviced apartment that matches your investment plan.