If you’re looking for the right moment to tap into the real estate market, 2017 maybe the year for you. The current prices in the market are favorable for those who want to buy, not to rent.
Purchasing a property gives you access to a service that is permanent, and paying for a mortgage loan maybe cheaper than renting on a monthly basis, especially that rents are bound to rise ahead of Expo 2020.
With heavy regulation in place, plenty investment opportunities, new developments and high returns, this is the right time to own a property in Dubai. This is what you should consider before making the decision to place your money into real estate:
- Affordable housing: A report by Core Savills shows that Dubai has picked up the pace towards the affordable housing trend, as more developers now have turned their attention to this type of segment with a total delivered stock of 40% in the low and mid-market category in the first quarter of 2017. Most of the new home handovers are taking place in communities such as Dubailand, Jumeirah Village, Al Furjan, Discovery Gardens or Sillicon Oasis. Dubai has been ranked the 9th most expensive city when it comes to affordability, with renters spending around 39% of their income on housing. Developers have understood the importance of competitiveness in the market and have shifted their investments towards the middle-income sector, offering interested buyers plenty of options to choose from.
- Off-plan is cheaper than ready property: Buying off-plan in Dubai has its perks and risks. The most important benefit is the lower prices, as developers usually offer 10 to 30% discount on properties under-construction. However, there are some risks associated with it, that must be taken into consideration, such as project delays, quality risk, market risk or change of financial situation.
- High returns: Dubai property market offers high rental returns, with gross yields of 6 -10 %, being more attractive compared to other global cities, despite still being a young market. Dubai’s government has made huge effort to comprise a comprehensive regulation system that would stabilize the market and discourage speculative buyers, looking at a quick profit and exiting within 12-24 months.
- Only legit developers can advertise property for sale: Any developer or broker is required to get approval from RERA, before they advertise property in the media, according to a new regulation which came into place in October 2016, thus protecting buyers and genuine developers from fake ads.
- Expo 2020 and Vision 2021: With an international audience of 25 million visitors and bringing together more than 180 nations, Expo 2020 makes up for one of the most compelling reasons to invest in the Dubai real estate market. There is no doubt that Dubai will make a show out of the most anticipated event in the recent years and plans to invest 2$ to 4$ billion to develop the infrastructure around the hosting area.