What is the risk of investing in generic studios in high supply areas

Investing in generic studios in areas with high supply like parts of Dubai South can be risky because there is little to differentiate one unit from thousands of others. When thousands of identical units hit the market simultaneously landlords must…

The full explanation

Investing in generic studios in areas with high supply like parts of Dubai South can be risky because there is little to differentiate one unit from thousands of others. When thousands of identical units hit the market simultaneously landlords must compete on price to attract tenants which suppresses rental yields. To avoid this investors should look for unique selling points such as better amenities views or distinct architectural concepts that make their unit stand out.

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