The Coronovirus did play a little havoc and created uncertainty in the volatile Dubai Real Estate market. Numerous Home buyers were apprehensive about making a heavy purchase, as they were afraid of not being able to crack a good value-for-money property deal.
However, we can now safely assume that things are getting back to normalcy. The Dubai Realty Sector is back in action, as many uncertainties have started to settled down. As per recent stats published by Dubai Land Department (DLD), Dubai Real Estate is showing a strong upward growth and the demand for housing is increasing, especially with the new Hybrid Working Model that has come into practice.
Things really started to pick-up pace in the third quarter of 2021, when sellers got twice the money from selling their property; than in Corona times from the previous year – 2020. The most desirable sales took place in Dubai Marina and Business Bay. Also, more and more renters started moving from temporary rental homes to owning an apartment, villa, or townhouse, in some of the most family-friendly communities of Dubai.
A steady growth trend was noticed due to the positive changes that took place with the issuance of the 10-year visa policy. A 10-year residency visa is granted to individuals who have made public investments of AED 10 million or more or those who have established a company in the UAE with a capital of AED 10 million & more. Ofcourse, there are other criteria for individuals who are eligible to getting a 10 year residency visa, but we have discussed that in a separate blog.
The ongoing Expo 2020 (1 October 2021 to 31 March 2022) has subtly contributed to revival of the Dubai Real Estate sector, as visitors from all over the world are getting to have a first-hand experience of what life is like in Dubai, and maybe considering to move here for brighter work opportunities.
Here are a few top reasons as to why investors and home seekers think it’s a good time to buy property in Dubai:
Property Prices in Dubai are Decent
Property prices slightly dropped between Q4 2019 and Q4 2020 by 4.4%, which created a slight inclination amongst those who were on the lookout for investing in Real Estates. Despite this, prices grew by 1.2% on quarterly basis, showing a slight price appreciation. This denotes that though property can be purchased at a comfortable price today, it will increase year-on-year and achieve steady stability in future. Hence, it will be a win-win deal for investors, and their investments are sure to secure an appreciation.
Investing In Unique Locations
Dubai has made its mark in the global Realty segment. Combining the advantages of technology, a pioneering spirit, and vision of making Dubai one of the most preferred residential destination of choice, Real Estate developers are not shying away from adding creativity and introducing unconventional architectural concepts, to upgrade the standard-of-living for families. Where else could you purchase a luxury property on a secluded Palm-shaped Island? From family-friendly gated communities with world-class amenities, to holiday resort-like destinations; surrounded by sandy beaches, hills, and lagoons, Dubai has really upped its game. Curating unique experiences and favoring a well-balanced lifestyle by encouraging sports, fitness, and outdoor activity; gives the entire concept of ‘living with four walls’ a whole new meaning. The future is definitely bright; as 64,000 new housing units are in pipeline, adding more options to your final purchase decision.
Earning Capacity and Non-Taxability
As per a survey in 2019, it was found that living in Dubai is 28% cheaper than living in New York, and is ranked at number 58- amongst the most expensive cities of the world. In UAE, the average income of families is about AED 18,248.60, as there are certain rules for minimum wages, under each category of individuals. University graduates are allowed to earn AED 12,000 per month; while skilled technicians have a minimum wage cap of AED 7,000 per month, the skilled labor class earns a minimum of AED 5,000 per month. Also, there in UAE, salaried income is non-taxable, and hence the entire earnings are at your disposal.
Housing At Various Price Point
Dubai offers housing at different price points; economical & affordable entry level prices to uber-luxury price points. There are so many options for all sets of incomes, that choosing ‘the one’ in your budget could get pleasantly confusing. If your eager to own a home, but have only Dh750, 000 at your disposal, hunt for homes in the following areas; the International City, Dubai Silicon Oasis, JVC (Jumeirah Village Circle) and Dubai Sports City. Single working professionals and bachelors will be able to purchase a 1 BHK or Studio, at that price point and expect an 8-9% return from studio and 7-8% return for a 1 BHK.
Home-seekers who have a budget between Dh750, 000 and Dh1.5 million, have several options at their disposal. They have to however, make a trade-off, between choosing a bigger home (3+ BHK) in sober localities, or choose a modest sized (2BHK) home in a up-market locality within a township.
For those with budget greater than DH 1.5 million, there’s no restriction on compromising of sq.ft. or on the neighborhood address. Even the sky is not a limit for these high-end buyers. The most premium zones include Apartments, Villas and Townhomes in Dubai Marina, Downtown Dubai and Palm Jumeirah, amongst other posh areas of Dubai.
Dubai has become a hot-spot for investors, and there is no looking back. From long-term perspective, it makes complete sense to make a wise decision and sign the Real Estate deal, without worrying or having second thoughts! So are you ready to invest wisely and purchase property in Dubai?
