Is it the right time to invest in Dubai? How is Dubai property market going? So many questions regarding the current state of the Dubai Real Estate market and whether now would be a good time to buy property.
As a leader in Dubai property market, Greenhouse Real Estate answer is invariably yes, especially as the market has become more attractive with opportunities available and returns to be gained from purchasing now.
The market has been softening for around a year now, but is expected to pick up again in 2016 as the next five years are expected to see strong economic growth in Dubai due to EXPO 2020.
Picking the right timing is always tough but it is better to be early rather than late and investing early will be more beneficial.
We recommend you start your property search immediately with Greenhouse, as a property investment requires the same approach and set of considerations regardless of the state of the market and proper due diligence can take time.
Why it is the right time to invest in Dubai
The question whether one should invest in Dubai’s real estate market or not has been in everyone’s mind, especially after the recent drop in property prices and the spike in rent. Residents and investors alike are wondering whether it is safe now to put their money into realty.
Greenhouse takes a closer look at the market and the recent figures indicate that the time is right to invest in Dubai.
The right climate
A number of factors play a vital role to make Dubai a strong economic force in the Middle East.
Political stability: A main factor that sets the UAE apart from its MENA neighbors. The UAE has become a model of political stability at a time while some nations in the region are witnessing unrest.
Landlord Friendly regulations: The recent years have seen a continuous change and alterations in ownership laws and regulations in the Emirate. These all laws are seemed to be in the best interest of the owner. An example can be made of the current talks and negotiations regarding will and inheritance rights for non-Muslim property owners in emirates.
Massive development projects: The country has currently a number of mega-development projects such as Meydan One, Dubai South and Dubai Water Canal.
The right prices
Dubai property prices are dropping noticeably faster than rent rates, and for those looking for the right moment to invest into the real estate market, this could be it. Experts agree that the current prices in the market are in favor of those who buy, not rent. Recent findings show that it is cheaper for a person to buy a property in Dubai than to rent one, especially if they are planning on settling in the country for the long run.
According to Pooja Shah, executive director at Greenhouse that when you are renting a property, you are giving away money for a temporary service while when you purchase a property; you are paying for a service that is permanent. Right now, real estate prices are extremely low, and are expected to rise closer to Expo 2020.
At the current rates, it is cheaper to pay a mortgage loan than to pay rent on a monthly basis. Rental rates will continue to rise as we get closer Expo 2020 date.
The following two graphs show the expected rental and purchase rates by the year 2020,
So it is a good time to buy property, however, potential buyers need to make sure they can afford to pay the deposit and are eligible for a mortgage as well.
The right opportunities
Dubai currently has plenty of real estate investment opportunities. However, the main investment opportunities remain linked to Expo 2020 and its effects on the emirates economy.
Experts claims that investing before Expo 2020 is a guaranteed win because Dubai is expecting over 17.5 million people to visit the city and these people will definitely need a place to stay in Dubai. So if you are looking to invest in Dubai properties to gain revenue, then seriously consider buying to let. Also the Expo is creating thousands of job opportunities in emirate and officials are expecting a huge number of expats to relocate to Dubai.
Beside from winning the bid to host Expo in year 2020, Dubai enjoys a reputation for being the number one expat destination in the Middle East as recent studies have shown. All figures indicate that Dubai has plenty to offer, and is a safe choice for first time property investors.
Made up your mind about investing in Dubai properties? Contact our senior property consultants to invest in Dubai; we are here to facilitate you. Also stay tuned for our follow up on where to invest in Dubai and why.