Six Reasons To Buy Property In Dubai Now
With Cityscape Global now over, having been held at the Dubai World Trade Centre last month, there has never been a better time to buy property in the UAE.
The conference introduced various changes allowing Dubai developers to sign sales deals on the expo floor, opening a new level of opportunity for buyers and sellers. Residential prices are now at or near the bottom of the current cycle, meaning there are loads of great deals available. We’ve put together six major reasons why you should consider property in Dubai right now.
1) Increased Affordable Housing
Dubai isn’t traditionally synonymous with affordable housing, but there has been a shift in interest in this sector. This move towards affordable or middle sector housing is positive for the industry as a whole. More affordable housing increases the competitiveness of Dubai, and the attraction of the city to a wider band of people. The market is facing the need to try and ensure that these kinds of units remain affordable by limiting the size of investment deals.
2) Off-Plan Investments
The middle two quarters of 2017 have seen off-plan more popular than secondary market sales by 30%. This clearly shows the high investor confidence in Dubai.
3) High Returns Likely
When compared with other property hotspots, Dubai’s market offers increasingly attractive rental returns. Even taking into account that the market is softening, investors can expect to achieve yields of between 6% and 10%.
Interest rates for investments are also extremely competitive at around 4%. The real estate market in Dubai is still young with options for expatriates only starting 14 years ago. While it can be challenging to read a market that changes fast, it also means that there is the potential for higher returns.
Carrying out proper due diligence and getting professional advice is key to maximising the Dubai property market. It’s perfect at the moment for longer-term buyers looking to invest for five years or more. Investors who want a quick profit and would like to turn around a property in 12 months are less likely to be successful.
4) Choice Of Communities
There is a wider range of property options available in Dubai than ever before. Recently, several new projects have come to stand alongside established communities. They have great infrastructure, facilities, roads and conveniences, including schools, hospitals and shops.
Dubai also has many developments on the horizon with no slow down of new regions in the pipeline. When buying, look for communities that are buzzing and busy, with minimum empty units.
5) Spotlight Returning To Dubai
Major events like Expo 2020 and Vision 2021 being staged in Dubai is bringing the world’s focus back to the property market. These are likely to increase demand from firms looking to locate or relocate into the region. In turn, this will bring more people who want to live and work in Dubai.
We’re looking at a period of sustained growth in commerce and employment opportunities, and therefore a growing population. This will help the market stabilise as there is an increased demand for residential property.
6) New Options For REITs
A number of new REITs (Real Estate Investment Trusts) entered the market in 2017. These kinds of trusts allow small retail investors to take part in the sector without directly buying real estate assets.
It looks likely that more REITs will be launched over the next couple of years. They will focus on sector-specific investors looking for a particular asset class, such as education, logistics or hospitality. While Dubai is a good market currently for institutional investors, more good quality investment products with secure long leases will increase interest.