The price of real estate in Dubai has skyrocketed over the years, with international buyers taking advantage. The demand for homes is at an all-time high because people want to get into this hot market before prices go even higher. In addition, they are not wrong. Safety concerns are on everyone’s mind these days. Who would have thought safety could be linked back directly to how much money you make or do not bring into your country.
Residents within Dubai Emirate also seek out larger properties that offer them more privacy than smaller houses can provide (or maybe it is just me). Furthermore, improved regulations regarding foreign investors helped contribute heavily.
With the number of new residents in Dubai continuing to rise, real estate transactions have also been on an increase. In 2021 alone, there was a total of Dirhams 151 Billion worth of deals made with this particular type. So if you are thinking about Buying a property first time here then what do I need to know?
The First Factor Is Rising House Prices
Let us start with the cost of housing. Dubai’s prime residential property prices (i.e., Dubai Marina, Palm Jumeriah, City Walk, Downtown Dubai, Emirates Hills, Meadows, and DIFC) increased 17.4% in 2021, ranking third among the world’s top cities. However, when compared to the city’s global equivalents, they are still undervalued, which presents a fantastic chance for first-time purchasers or indeed any buyers.
According to research, Dubai’s premier real estate prices are among the lowest in the world.
To put this in perspective, according to data from December 2021, top property prices in Dubai average $630 (Dh2,314) per square foot. To mention a few, Hong Kong ($4,530 or Dh 16639), New York ($2,580 or Dh 9476), Geneva ($2,250 or Dh 8264), Tokyo ($2,220 or Dh 8154), Shanghai ($2,200 or Dh 8080), London ($2,090 or Dh 7676), Sydney ($1,990 or Dh 7309), and Seoul ($1,910 or Dh7015) are all much cheaper.
As a result, a high-end Dubai apartment or villa with a corresponding lifestyle is a viable option. It also explains why merchandise in these high-demand areas sells quickly. This growing trend for premium residential units is expected to continue into 2022, according to analysts.
According to the Savills Global Cities Prime Domestic Index, which analyses the performance of 30 worldwide cities, the capital value of prime residential property in Dubai will rise by an additional four to six percent in 2022.
To put this estimate into perspective, in the 4th quarter of 2021, the market saw a 5.27 percent increase in volume, totaling Dh17.07 billion, with 5,200 apartments and 552 villa sales in Dubai’s top residential sector.
However, you may believe that not everybody can afford to buy a buy to let (rental out) apartment in these ideal neighborhoods, given the higher upfront costs and increased competition from other buyers.
The good news is that sales in non-prime areas of Dubai have also increased. Newer neighborhoods such as Dubai Hills, Jumeirah Village Triangle, or even Jumeirah Golf Estates have profited from investors and end-users opting for newly built, high-quality houses to live in or invest in.
Investors and end-users searching for newly built, high-quality homes to live in or invest in have flocked to newer developments. Like Jumeirah Village Triangle, Dubai Hills, and, to a lesser extent, Jumeirah Golf Estates.
The Second Factor Is Higher Rental Returns
The cost of renting in Dubai has also increased significantly. Rental prices in high-end villas increased by 41%, according to the Savills World Cities Premier Residential Index. Furthermore, as per a survey published by UK-based estate broker Savills, Dubai’s high-end regions saw a rental increase of 25% last year. The biggest among the 30 cities included in the index, fueled by the government efforts described above as well as the return of experts to the city.
This positive perspective continues to attract a continuous stream of expats who want to live and work in the UAE. As a result, there is a great demand for a high-quality rental property in Dubai. As seen by the countless fresh queries for residential projects received every day.
Furthermore, every property owner has a renter, whether it is a buyer looking for a short-term rental. While looking for a home or a professional tenant on a long-term lease. As a result, buy-to-let investors all over the world are realizing that now is the best moment to become a “landlord” in Dubai.
Third Factor Is Pandemic-Induced Flexibility
It is also important to note, especially for first-time buyers, that people’s living and working routines have altered. Furthermore, while the full of these needs to be seen; there are a few points to consider.
To begin with, the way we design places now differs significantly from how it was prior to the pandemic. When looking for the Buy Property in Dubai, keep in mind that the design must be more personal or, in some ways, technical. Because people use their own homes for work, education, and a variety of other activities.
With it in mind, search for developers who have given careful consideration to how to make people’s lives more healthy in their living places. Accepting four walls and just a kitchen is no longer the norm. The finest designs make it possible to live, work, learn, and play all in one place.
Following the pandemic, there has been a steady rise in the number of people working from home. But as this trend becomes more common. A well-designed home provides a lot of value to your prospective tenant, increasing the reproach of your new property.
Second, as the world’s population has spent more time at home, one thought has arisen: a home ought to be a sanctuary. Even when renting a property, tenants are looking for a place to call home, not just a place to live.
They desire more freedom in their living area, as well as more amenities, better internet, and even an active neighborhood in which to live.
Are there schools close, is there a park, is there a hospital nearby, can they buy groceries. Also go to a salon, or quickly board the local bus/train from their home? These are all very real concerns these days, as individuals choose the quality of life over cost.
Fourth Factor Is Sustainability-Focused Projects
First-time investors should look for sustainable developments that use cutting-edge technology and materials. These buildings have been designed to optimize their operations, which saves you money in service charges over time.
Solar power is an excellent way to supplement energy consumption in buildings. The annual service charge paid by owners will vary depending on how many solar panels are used and their efficiency. However, it is possible that you could save 15% or more. As a first-time investor looking out for future projects like these, which can help keep your operating expenses low overall. This should be something worth considering when investing in real estate. In general, congratulations on what sounds like great news. I hope all of those worries were just nerves.
What Are The Main Points To Remember?
The real estate market in Dubai has been booming for quite some time now, with investors looking to get involved. With harsh regulations, set by RERA (Real Estate Regulatory Agency). Which seeks protection of homebuyers’ interests as well boosts investments into the sector. This place seems like a safer bet than ever before.
The relationship between a property owner and tenant is carefully regulated. Through inspections done on each party’s compliance. Both during the search process or contract renewal periods. If you are lucky, enough to have an accredited manager handle those tasks instead so.
You do not even need to be a resident of the UAE to make your try to purchase investment work. In addition, look for a registered builder who can assist you with financing your future investment. Many projects have post-handover payment options that you can take advantage of.
You can pay anywhere from 20% to 40% down and begin renting your property right away. Wth the balance repaid over the course of two or three years.
Overall, available inventory in prime regions is limited, giving it a seller’s market. Newer projects in peripheral areas that meet all of the criteria are now a viable choice. For investors wishing to enter at a reduced capital value.
In the conclusion, one must recognize that they are putting inside the city. Also its management and its potential for progress. Having said that, a study conducted by Swiss bank UBS examined data from 25 significant worldwide markets, of which only Dubai is now undervalued.