Welcome to the UAE, the world’s second best property investment destination after the United States. Dubai, in particular, has benefited due to support from robust population growth and domestic wealth creation. TimeOutDubai reports that according to property experts Bayut.com, there has never been a better time to buy property in Dubai.
Many areas in Dubai already have high rent yields of around six to nine percent. These include Dubai Marina, JLT, The Springs, and Dubai International City. They benefit from easy access to the best schools and universities in Dubai International Academic City, numerous entertainment venues, Fortune 500 firms in Dubai Silicon Oasis, as well as lower price points.
The real estate market is set to benefit from the Government’s increased spending on infrastructure. As the area develops in terms of infrastructure, extensions of existing communities such as Dubai International City (Phase 3) will offer a higher return of investment in the form of capital gains. Higher capital appreciations will be realized as the perceived price goes up.
A raft of Government changes coming into place – from ten-year visas, company ownership, and new retirement visa, will also drive growth in the real estate market.
Haider Khan, CEO of property search giant Bayut.com, insists “locking in on a great price now” is the key to building a safety nest. He added, “It’s a buyers’ market now and if your mortgage works out to be more cost-effective than rent, you could actually end up saving money in these years and have a property to your name or rent it out and have part of the rent cover your mortgage. Not only will you get to enjoy living in your own home while you are in the city, if you do end up moving away, you can also benefit from passive income in the form of rent while you settle down in your new country of choice.”
The UAE was the second best country in terms of rental yields for overseas property investors, according to a report by Business Insider. The report ranked the UAE only behind the Philippines in terms of expected average rental yield before taxes and costs.
According to a study by Bayut.com, Dubai Marina retained the top spot for buying apartments in the city in 2018. Average prices for studios were Dhs850,000, Dhs1.19million for a one-bed and Dhs1.95m for a two-bed.
“Dubai Marina” was the most searched for area in flat sales while “Marina Diamonds” was the most popular building – accounting for 21 percent of searches.
Downtown Dubai came in second for buying apartments. It was the only area where prices remained mostly unchanged at Dhs1.03m for studios, Dhs1.6m for a one-bed and Dhs2.95m for a two-bed. Third was International City which saw an average 12.9 percent fall in studio prices to Dhs270,000. A one-bed was Dhs385,000 while a two-bed was Dhs710,000.
Khan said, “Property is one of the most popular types of investments in the world. So, even if you don’t see yourself living in Dubai in the next five years, it is still a good time to buy a home here and build yourself a little safety nest.” Even residents who are considering moving abroad in the next few years could still capitalize on the undervalued housing market.
He continued, “If you are keen on remaining a tenant, be smart about making the right decision when it comes to your rental property.”
The falling rental prices make it an ideal time to renegotiate your current rental agreement, or to upgrade. You could probably relocate to your preferred area or a bigger property within the same budget.“Do the right research before making any decisions and look out for lucrative offers from brokers, including substantial discounts on maintenance costs and agency fees.”
Its important to do the right research so you can make an informed decision. There are many discounts available from brokers including discounted maintenance costs and agency fees.
For more on the subject tune into Time Out Dubai’s brand-new podcast The Big Listen.
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