Real Estate’s Year so far
As has been noted constantly this year, real estate has performed exceptionally well
in 2023. At first glance, it may appear that investing in properties is the most
lucrative option, especially this year.
Luxury vs Mid Market Analysis
When digging a little deeper, mid market properties have returned greater rental
yields almost entirely across the board (post-COVID). However, looking at the total
return of properties as a whole, the picture flips and luxury dominates.
Stock Comparison
The two main indexes, DFM and ADX, have outperformed Dubai residential prices
overall post-COVID, despite a more granular view of individual stocks and
communities failing to paint a clear picture about which asset class is superior. An
alternate strategy for investors may be to invest in real estate stocks, thereby
hedging against the pitfalls of investing in properties or non-real estate securities.