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It is clear that there has been a change in the real estate sector in the last 12 months. Although prices have declined since the end of last year, the real estate market is still very active in Dubai. Here is what you need to keep in mind in 2016: Buyers: It’s imperative to do your research, starting with a realistic budget. It is a very competitive market and you will be surprised with the deals available if you shop around for mortgage rates. Request and compare quotes from banks and financial advisors.
Research areas suited to your budget and take your time. It’s a buyers’ market so prices are not likely to suddenly fluctuate. Finding a reliable agency is important and it should take time to understand your requirements.
The agent should have excellent knowledge of the properties and areas you are considering, to ensure you make the best investment.
Sellers: Speak with at least three reputable agencies and get the current market analysis in your area.
Owners often make the mistake of basing their prices on current asking prices. Sold prices is the correct data to be researching. To understand the best price for your property you will need at least three recently sold comparables within the area.
Your agent should provide you with all this information.
The longer a property is on the market, the less likely it is to sell and if it does, it will be at a much lower rate. If a property is priced and marketed correctly it should sell within three months.
Landlords: Before the property is vacant, check out the Real Estate Regulatory Agency rental increase calculator (www.dubailand.gov.ae). This gives you the current market rate for rental prices in your area. It is wise to rent your property at a slightly lower price than to have it vacant for a lengthy period, waiting for a high price. Flexibility to accept multiple cheques can also increase interest in the unit.
Tenants: You should take advantage of the buyer’s market and see if you are in a position to purchase a property.
Speak to banks or a mortgage advisor. If you can afford it, you could buy property and then sell it when you decide to leave Dubai.
If buying isn’t an option then start with your budget, location and number of cheques you can pay. Work with a reputable agency you can trust. The rentals market runs at a fast pace. If you see something you like, make an offer as it might not be available the next day.
Source: Devin Hipkin, Special to Property Weekly
The writer is a Managing Director and co-founder of HMS Homes Real Estate, an independently owned real estate company based in Dubai.