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The Dubai real estate market is relatively mature, so investing in property here now is good value for money. Despite the continued softening of property prices, the long-term prospects for the emirate’s real estate sector remain healthy.
Dubai is a city that can withstand tough market conditions. For serious investors, 2016 is the ideal year to buy considering the lower price points, higher rental yields and lower mortgage rates on offer.
The expectation is that from 2017 onwards, the prices will start to rise at a stable pace.
With the current trends in the property market, investors should not have second thoughts about buying.
The demand from end-users to buy properties in the upscale areas is high as they are provided with a variety of options at reasonable prices.
Dubai offers the best in pricing and proximity parameters compared to any other cities in the region. The market remains positive in the long-term outlook due to the potential growth in the future, with mega infrastructure developments ahead of the World Expo 2020.
Investors who want to capitalise on all the opportunities that the Expo has to offer are advised to buy properties currently available in the market at lower prices.
A plethora of investment options is offered to both investors and end-users by several developers. A number of bargain deals are currently available here.
Be it an end-user or a big-ticket investor, it cannot be emphasised enough that the best time to buy property is when the market is witnessing a sign of correction. Generally, every buyer needs to prioritise their “end game” from the start.
The demand for serviced residences in an up-and-coming community adjacent to the New Dubai region is expected to increase ahead of the Expo hosting. This is because the Dubai government is planning to double the number of tourists from 10 million to 20 million by 2020.
Investing in property in Dubai is relatively less complicated if one is careful about details such as location, quality of construction and trust factor with the developer.
Buyers must ensure they pick an investment in a good location and also with the right price point.
A fresh supply of new apartment units is expected in the market, but as the rental yields are still pretty much stable, it makes sense to buy rather than keep renting for the long term.
Timely investment in properties offers a lot of benefits irrespective of the type of property involved. You can invest in both commercial and residential properties, which are considered viable for a profitable investment. This, combined with rental yields of 6 to 10 per cent per annum, is a recipe for success for time-conscious investors.
The key advantages offered by the Dubai property market vis-à-vis investment in other markets lies in the fact that investors do not have to deal with complicated documentation and provisions related to tax as there are no personal or income taxes here.
Property prices have come to a more realistic level and have become attractive to end-users, thereby increasing the possibility of a large-scale migration from rental home to home ownership.
One key measure a buyer must take when purchasing property is to engage a reputed real estate consultant.
The time-consuming responsibilities of owning a property can be easily delegated to a property consultant for a fraction of one’s rental returns.
A broker can find tenants, handle tenancy contracts, receive payments and assist in property maintenance, giving the investor a headache-free solution to owning a property in the dynamic city of Dubai.
Source: Manish Khatri, Special to Freehold
Vice President, SPF