Numerous factors have contributed to the success of Dubai – the city of gold. However, it’s the real estate market and tourism that has given its economy a major boost. Speaking of the former, it acts like a magnet that attracts entrepreneurs, investors and renowned firms from across the globe. Apart from the lucrative opportunities it has in store for them, the tax benefits they enjoy here is another major reason that can be attributed to its success and popularity.
For beginners, investing in the Dubai real estate market may seem like an overwhelming, or a rather challenging, feat. Since it’s literally the land of opportunities, people can easily get confused as to where to invest their money to earn a high ROI. For their assistance and guidance, we have come up with an in-depth insider’s guide to the real estate market in Dubai. Read on to know more:
Market on the Rise
Although COVID-19 hasn’t completely vanished, the restrictions imposed by the authorities have been eased up to a great extent. Reports suggest that the real estate market has also returned to normalcy showing a V-shaped recovery. A total of 2,361 property transactions worth 4.9 billion were recorded in June 2020. These figures testify to the statement that the market is on the rise. Therefore, making it an ideal time to invest in this sector.
Another reason why investors and buyers are keen to buy properties in Dubai is that developers and sellers are showing enhanced flexibility. Prices have reduced, payment plans have been made convenient, and several other incentives are offered by both sellers and authorities to encourage people to buy properties in Dubai.
All these factors, coupled with timely actions taken by the Dubai Government, has enabled this sector to cover the lost ground and regain momentum.
New Communities Entering the Market
With the extension of Metro Route, new residential communities have become more accessible. Furthermore, the completion of projects launched in previous years in some communities has also allowed new areas to enter the market.
Buyers who can’t afford residential properties located in famous neighborhoods in Dubai are turning to these areas to explore budget-friendly options. Some of these localities are:
- Dubai South
- Dubai Sports City
- Mohammed Bin Rashid City
- Damac Hills
- Al Furjan
- Dubai Investment Park
- Jumeirah Golf Estate
- Discovery Gardens
Professional Help is Required
Whether you are a new investor in Dubai or a pro, one thing that’s certain is that you need the services of professionals if you want to make informed decisions vis-à-vis real estate investment. Through the different stages of buying a residential property, you will need professional help. From exploring property listings to conducting background checks, home inspection to taking care of legalities, experts can make the whole process stress-free for you. Other than that, the trend of relying on property managers is also growing. Many foreign investors hire property managers to handle/manage their properties on their behalf while they are in their homelands.
Some people think of hiring professionals as an added expense. However, they don’t realize that these professionals can lessen the chances of scams and frauds. Picture this, you have selected a property in Dubai that’s available at extremely affordable rates. You are patting on your back for striking this deal. However, the property turns out to be in dispute. This can certainly land you in hot waters. Therefore, in order to avoid facing such circumstances, it is recommended to hire professionals and rely on their services.
Apartments vs. Villas
This has always been a tough choice for buyers to make. Although studio apartments have remained the most preferred choice among buyers; however, the global pandemic changed the situation. When people had to be confined to their homes, they realized the importance of living in larger, spacious homes. This is why their preference shifted towards villas as they have separate gardens, providing residents with ample space to live and breathe freely. Numerous property portals reported receiving more queries for rental villas as compared to apartments for rent in Dubai.
Having said that, it doesn’t imply that apartments are completely out of trend now. They still make for an integral part of Dubai real estate. As villas are more expensive, those who have a limited budget, they tend to settle for apartments. There are still a huge number of projects featuring apartments in different configurations; all geared to provide an ultra-luxurious lifestyle to residents.
Off-Plan Properties Gaining Popularity
Other than ready-to-move-in projects, off-plan projects have also gained popularity in recent years. These are those projects that are yet in the completion phase. As they cost less as compared to ready properties, they make for a pocket-friendly option for buyers and, particularly, investors.
Buying an off-plan property has its pros and cons. Apart from comparatively low rates, another advantage of investing in or buying such a property is that you can sell it even before it is completed. Chances are that you will find a buyer who’s willing to pay more for the said property, provided the project has garnered a positive buzz in the market.
On the flip side, there can be unexpected delays during the construction phase. Thus, the project may not be ready on time. This can lead to a troublesome situation for those who had planned to shift in the property.
More Amenities, More Interest from Buyers
Apart from the budget and location, another major factor people pay attention to when buying a real estate property is the amenity it offers. The more amenity a property has for buyers; the more interest it gains. This is why developments that nestle fitness centers, swimming pools, rooftop entertainment options and other such amenities gain more popularity.
To sum it up, Dubai real estate has plenty of opportunity for those who seek. It all comes down to your requirements and budget. Always remember the fact that entering into the real estate market is not a small feat. Therefore, no matter how lucrative the offer is, don’t draw into impulsive decision making. Take your time to evaluate things and make an informed decision.