Researchers and experts are suggesting that house prices after suffering from three-year lows will rise before the Dubai 2020 expo. So could now be the right time to start climbing that property ladder?
If you buy now, you can sell when prices rise and make a killing. But first, you need to decide where you’re going to invest so let’s consider some of the possibilities.
Considerations You Should Make Before Investing
There are a few factors you need to consider when you are buying property in Dubai. First, you will likely find that areas with fantastic amenities are going to be more desirable and therefore more expensive, mainly due to the demand from families. Other up and coming areas will be cheaper with more significant potential for future price rises.
These are the places where potential buyers should be looking to invest in properties. They are the best yields for rentals, commonly reaching 8-9% with some exceeding 10%. As well as this, prices are affordable, we’re talking rates lower than Dh100 square foot. There is a noticeable difference between complete homes that are 60% higher in places like Downtown Dubai.
Issues With Incomplete Properties
The downside of buying properties like this is going to be the inconvenience, the eyesores and the noise. Even after your property is built, you will likely still be in an area where there is heavy construction.
This will also mean that you won’t have the proper infrastructure in place and that can mean heavy traffic and a lack of amenities. This can be difficult for families who are looking for places to take their kids to school.
There are plenty of communities like this right now including Dubai Land, DSO, Dubai Sports City, JVT and Motor City. In areas like this, there are many companies with substantial investments in the real estate market, and these communities are steadily growing.
Is It Time To Buy?
It depends on how patient you are. Analysts suggest that it could take at least five years due to high entry and exit costs. If you do decide to buy, you need to at least take this into account once you buy from an agent.
Of course, it could be a lot longer, and that’s why you need to work with a property agent that you can trust.
The good news is that these days, you can get a property off plan with far less than a fifty percent deposit. Indeed, many experts argue that you can save a lot of money by purchasing a property off plan.
If you have a larger budget to play with, there are other high-end areas that you could consider buying in like Dubai Marina – perfect for waterfront views – and Downtown Dubai. Although, you will need to be prepared to pay a premium for a property in this type of location.
So, it seems then that if you want a luxury property, Dubai is expensive, but there are cheaper options on the market right now and high potential for eager investors.