Why choose Dubai? Because it has been the pacesetter when it comes to real estate, it is where the beat is. Purchasing an off-plan property is more affordable than acquiring ready units, however, it may come with certain risks that should be considered wisely before making any move. In order to make the right decision and avoid having regrets at the furthermost part, make sure to know the pros and cons that underlie it.
Below The Market Pricing:
Q1 2015 can be considered as a trial period for Dubai Real Estate Market due to decreasing number of transactions and diminishing price levels compared to Q4 2014. According to the research conducted by Estate Up during Q2 2015, the average Sales price of residential apartments continued its downward trend as sales price recorded a drop of 3% from Q4 2014. On the other hand, residential apartment rental transactions observed a growth of 3% compared to the last quarter of 2014. Villa rental market has slowed during Q2 2014 that carried over until Q1 2015. A handful of villa handovers came about and also few were scheduled for Q2 2015. Sales and rental price of the commercial market have moderated on an overall basis.
The study was backed up by the analysis conducted by Roots Land during Q2 2015; the sale prices of new residential communities like Queue Point in Dubailand and many others in Dubai Marina, Business Bay, Downtown and Jumeirah Beach Residence continue to slow down, the residential apartment pricing dropped by 1.6% and residential villas pricing dropped by 21%, giving opportunities for investors. In a short span of time, the market has fought back, manifesting maturity and stability. The real estate market in Dubai is still stable despite the summer season. According to some studies, the market is anticipated to peak this year, 2015 and is unlikely to suffer the same downfall as perceived in 2008 and 2009. It is expected to sustain its peak until the next seven years.
ReidIn rent index shows rental transactions rose marginally by 0.67% for January 2015. The net yields in Dubai across all property asset classes is average 7.1% in the first three months of this year, according to Gulf News. The downward trend of the property pricing of the Dubai real estate market primarily could be one motivation of acquiring a property in Dubai at present and is an advantage. The pricing of residential units is expected to go up and will continue going up by the year 2020 due to World Expo 2020.
For investors’ point of view, it is best to purchase a property while the market is softening, as, for the market trend, it will eventually take its peak once it reached its lowest. Rationally, acquiring a property in Dubai at present is an advantage since the price is expected to increase up to 80% or even more by the year 2020. The regional conflicts of KSA at present also causes the diversified economy and provides an opportunity for UAE to attract foreign investors.
Transparency in Dubai real estate market is evidently improving with the involvement of government sectors, like Real Estate Regulatory Agency (RERA), EJARI (RERA’s online registration system) and Dubai Land and Property Department.
Permanent Residency For Non-Emirati:
Expatriates can now own a property upon purchase of a freehold estate and get a permanent UAE residency visa. End users may take advantage of the market’s moderate condition, it provides a once-in-a-lifetime opportunity to own a property in one of the hottest properties in Dubai’s most sought-after locations at a very affordable price. Dubai developers have also stretched their payment plans for end users or investors who think long term. Bank financing or mortgage plan is also available as an option.