In its latest initiative aimed at boosting property sales, luxury developer Damac Properties is offering a 24% rental return guarantee on all units purchased within its Burjside Terrace serviced apartment development in Dubai.
The developer is offering a guaranteed tax-free 8% annual rental return over three years, in a move aimed at increasing investor confidence in the stability and security of the property market in Dubai.
"A secure, guaranteed 8% annual return on investment is virtually unheard of anywhere in the world at the moment. There is no catch, no fine print, if you purchase a serviced apartment in our Burjside Terrace development, we will guarantee an annual 8% rental return, or a 24% total rental return over three years" said Niall McLoughlin, Senior Vice President, Damac Properties.
The rental guarantee is the second blockbuster promotion by Damac Properties since the start of 2012, following on from its luxury car giveaway as part of the Dubai Shopping Festival. The developer gave away scores of luxury cars, including Lamborghini's, BMW's and Mini Cooper's as part of its month long DSF promotion.
"We are adding value to our real estate proposition. The rental guarantee will appeal to a whole new league of investors, who are seeking high, stable, guaranteed returns on their investment. An 8% annual return in today's volatile investment climate gives investors a valuable peace of mind" Mc Loughlin commented.
"In addition to the guaranteed 8% annual return, there is scope for capital growth, which is an extremely attractive investment proposition for any global investor" he added.
Damac Properties will take responsibility for managing and leasing the unit, eliminating all stress for the investor.
The Burjside Terrace serviced apartment development is situated on the platinum stretch of real estate within Dubai's fashionable Downtown district, near the world's tallest building, The Burj Khalifa, and directly opposite the Dubai Mall. With the Armani Hotel and Dubai's iconic Address Hotel as neighbours, Burjside Terrace needed to distinguish itself amongst its highly acclaimed peers.
"DAMAC Properties was able to predict the likely demand for units in Burjside Terrace following the extraordinary success of the company's neighbouring serviced apartment development, Burjside Boulevard. We are so confident about the likely return on investment of units in Burjside Terrace that we decided to back all unit sales with a rental guarantee" said McLoughlin.
Both of Damac Properties' serviced apartment developments in Downtown Dubai will be managed 'Damac Suites and Spa', the hospitality management company subsidiary of Damac. It offers services from housekeeping at the most basic level, to items such as personalised butler services and personal chef services at the higher end of the spectrum.
Damac Properties is strategically focused on the serviced apartment development model, with construction continuing at pace at Burjside Boulevard which is on level 47, and foundation and enabling works completed at Burjside Terrace.
"Serviced apartments bridge the divide between luxury five-star hotels and residential properties. We are seeing extremely strong interest in this particular market segment" McLoughlin pointed out.
Dubai is a vibrant, global business hub with world-class infrastructure; strategic location; established tourist destinations, proven business centres; a highly skilled expat workforce; and most importantly strong and stable government leadership. While these factors contribute to the transient nature of Dubai's population, the highly mobile workforce has created significant demand for serviced apartments.
The growth in Dubai's hospitality sector is now attracting foreign investors, who are seeking high yielding property assets.
"The rental yields alone are attractive for investors, and coupled with the tax-free investment landscape, property in the UAE is an extremely attractive asset class for any investor, anywhere in the world" concluded McLoughlin.
With 36 buildings, including 7374 units completed to date, Damac Properties continues to be a major contributor to Dubai's real estate revival. As it continues to extend its portfolio of luxury products, which offer significant investment opportunities, Damac Properties will be an enduring fixture in the Dubai landscape, and Dubai itself will continue to be a major draw for property investors.