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The real estate industry all over the world has had its ups and downs.
Here, Iseeb Ur Rehman, CEO of Sherwoods Property, discusses the myriad developments and changes that are happening in the Dubai realty market.
Spend trend in the past years
The demand for properties priced below Dh1 million has increased quite noticeably.
For those planning to purchase a property in this price bracket, spending time to conduct research on all areas and property types will prove time well spent.
Purchasers in this level may have to spend more today than they would over two years ago; however, if they have done their homework, then they could achieve excellent value for their money.
For the prime, high-end property market, activity and spending have been quite steady over the past two years.
There has been no real slowdown in either the level of demand or the average price of real estate in the ultra high-end bracket.
What has supported the maturing Dubai residential real estate market has been the growth of more informed investors and owner-occupier purchasers.
Access to information has improved dramatically and that has been a major factor behind the developing real estate landscape in Dubai.
It has been an interesting 27 years in the business, with the growth of a diverse range of property investors across Dubai despite a debilitating global recession.
Some private investors have accummulated a vast amount of wealth which they are now using to become private developers.
Investors have thrived and made good use of the wealth of information they can now access, with a number of different types of investors now emerging across Dubai.
Prime areas of investment today
For investors looking at new developments, or to purchase some high quality prime real estate across Dubai, there are three major districts to consider: Downtown Dubai, Palm Jumeirah and Dubai Marina.
These three areas are attracting elite investors due to their location in relation to certain spots, and to a lesser extent, the type and style of property on offer there.
While there are other high-end areas in Dubai, they are still maturing and do not always attract the attention of the ultra-wealthy investors.
For investors and purchasers who are considering entering Dubai real estate for the first time, or are considering their next purchase within Dubai, there are two main advantages to always keep in mind.
The first one is the lack of taxation. With no government taxes payable on earnings made in Dubai, any return on your investment made in the country is wholly yours, something that is a favourable arrangement when compared with European and US tax systems.
The second advantage is the ease of property transactions.
Overall, the process tends to be more straightforward and faster than in other parts of the world, which is a definite plus.
Investors’ reaction to change.
First of all, there are the most straightforward of investors, purchasers who are buying a home to live in and pass on to their children as an investment for their future.
Then there are the landlords who do their research, grow their wealth and build a small portfolio of apartments and villas.
A more sophisticated private investor is also now a prominent fixture in the Dubai real estate market.
They make full use of all the information they can and are researching areas, developers and demand to investigate the benefits of funding whole developments either on their own or in partnership with existing developers.
Dubai real estate has grown to be a mature market. It provides a wealth of benefits including a more sustainable option for international investors aside from oil-related industries and a wider range of options for investors already committed in Dubai real estate.
Source: Zenifer Khaleel, Special to Freehold