Dubai is a middle-eastern city which is highly diverse due to a large number of expats from different countries and nationalities. Some of them, who are working in Dubai, prefer to rent an apartment rather than buy one. It is because they believe that this will save their money in an effort to buy a house in their home country.
According to the fact that the expats usually stay a long time in Dubai, and the prices in the real estate market of Dubai tend to decline in the coming years, some experts say that buying a house in Dubai is an option helping them save money. The reasons indicating that buying a property is the right step are as follows:
According to the JLL estimates, Dubai now has turned into buyers’ market, as the prices for properties in Dubai have declined by nearly a quarter of what they were in 2014. To be more precise, the reduction for apartments was 10 percent, and for villas was 9 percent in 2018.
In addition to this, experts have predicted that we will witness a reduction of 5-10 percent in the property price this year due to more new stock being added to the market.
Mario Volpi, sales manager of Engel & Völkers Dubai, has put forward that buying is usually more sensible for anyone who has set his mind on staying in Dubai for seven years or more.
For a person who intends to stay in Dubai for seven years or more, it will definitely be cheaper if he buys a property, as the costs and fees for rent are extremely high. However, for those staying for a shorter period renting would be a better option.
Even for investors who do not want to live in Dubai, and just want to take advantage of high rents in Dubai, brokers believe that investing now is more lucrative.
They put forward that the profit of investment for residential properties in Dubai now is about 6-8 percent while the figures relating to similar properties show a profit of roughly 2 percent in Hong Kong. Also, the figures for London and Singapore are between 3.7-4.5 percent.
New rules for visa set from the UAE’s government also will increase demand for investing in Dubai, increasing prices and rents in the long term. Last year, the UAE government announced some measures in an effort to boost investments in Dubai.
One of the measures was enabling expats who are over 55 to receive five-year retirement on a condition of owning a property worth at least Dh2 million or having Dh1 million in savings or an active income of nearly Dh20,000 a month. Given the new rules, the UAE allows doctors and engineers also to have access to long term visas.
*most of the information above is based on Gulf News Website
For many, the idea of owning an expensive asset in a foreign country is daunting. Arecent Property Finder research survey found that 47 per cent of those polled who rent wish to continue to do so and are not interested in purchasing a home. A smaller percentage are either actively looking to buy or are […]
An independent report published earlier this year and commissioned by the Dubai government said that Expo 2020 will contribute more than Dh122.6 billion to the country’s economy by 2031. The report, by the consultancy EY, also stated that at its peak, Expo 2020 will generate business equivalent to 1.5 per cent of the UAE’s GDP. […]