Dubai is a splendid place to live. It’s a glamorous city that overlooks the Arabian Gulf with fantastic weather and excellent amenities. Yet, despite being one of the most luxurious cities in the world, it’s also suitable for people that aren’t wealthy.
This great balance makes Dubai a unique and interesting city that is accessible to almost anyone. When living in Dubai, there’s one all-important question to ask yourself. Do you buy property in Dubai, or rent property in Dubai?
Dubai real estate has been declining in the past year. Since residential prices peaked in 2013-2014, Dubai has been in a state of decline that bottomed out during Q1 of 2017. Now that we’re in the middle of Q4, things are starting to look better. Dubai’s real estate market is starting to show some signs of life.
Sales numbers have been rising yet, due to the supply, prices are also falling which makes it a great time to buy or rent property in Dubai.
Rent Has Been Declining
If you’re interested in renting a property in Dubai, then now would be a good time.
According to the Property Monitor Index, rental prices have been dropping. Surveys have shown that agents predict Q4 to see similar decreases while seeing an increase in sales and buyer interest.
According to the RERA rent calculator, some of the cheapest places to rent are currently Al Awir, Dubai International City, Abu Hail and Gardens. Al Awir currently has many new developments and is close to public transport, making it a great place to rent in Dubai. Al Karama is another prime rental location with low prices.
Although the buildings are older than other areas in Dubai, it’s a busy city that is famous for food, shopping and its residential units.
Purchasing Is Still Viable
In the past, it was said that purchasing a home in Dubai was cheaper than renting. That may still prove to be true thanks to some recent statistics. With over 8,900 property transactions in Q3 alone and a lot of activity in off-plan sales, it seems that the supply of residential properties is forcing developers to phase their projects to wait for demand to catch up.
If you’re interested in purchasing off-plan properties in Dubai, then consider locations such as Dubai South, Mohammed Bin Rashid City and Business Bay.
Statistics show that most of the off-plan transactions were in these areas thanks to recent property developments, and they will prove to be worthwhile future investments for those interested in purchasing property in Dubai.
As many agents predict, buyers will continue to show interest in Dubai real estate and agreed sales are expected to continue increasing. If you’re interested in buying or renting in Dubai, then now might be a perfect time.
The lowered prices for rentals seems to be having an effect on buyers, and innovative mortgage products from local banks are also playing a part. The latest reports by Property Monitor Index, show that rent has fallen 2.8% for apartments and 3.5% for villas and townhouses.
While it doesn’t seem much, especially considering that this has taken place over the past 12 months, it does show that rental prices are decreasing. Further decreases have are also predicted. Renting a property in Dubai seems even more attractive than it did when residential prices bottomed out at the start of 2017.