If you want to be an owner of property in Dubai, there are important things to know about the future of the real estate market in the country. Some of the things you need to know to include housing prices, the World Cup, the potential of off-plan properties, and the technology that will make it possible to manage your rental properties from afar. Whether you want to buy, sell, or rent Dubai properties. All these are linked with Dubai property management, and the real estate sector. Let us move on to further details:
Off-Plan Properties Are Cheaper Than Ready-To-Buy Properties
Buying an off-plan property in Dubai comes with some risks, but there are also some benefits to buying this type of real estate. These include low initial investment needs, flexibility in payment options, and strong returns on investment.
If you are looking to purchase a property, you can do so through an off-plan developer, which often has more lenient payment plans than ready-to-buy properties. This means that you can buy your house without making a large down payment. However, you will need to pay a fee to the Dubai Land Department for the transfer of your property.
If you are buying an off-plan property, you will be able to customize the size, color, and layout of your new home. In addition, off-plan residences usually come with a pre-defined floor plan, so you do not have to worry about having to inspect the property before you purchase.
Technology Makes It Possible To Manage Your Rental Properties From Afar
Technology has certainly taken the Dubai property management industry by storm. The old-fashioned way is being supplanted by the new school where tenants and landlords alike can log in to a slick mobile app and request maintenance or make rent payments on the fly. There is a lot of buzz around newer technologies like artificial intelligence, machine learning, and a slew of other nifty newfangled gadgets that have become a permanent fixture in the lives of several of Dubai’s most discerning real estate tycoons.
If you are in the market for a new property and have not dipped your toes in the water yet. Then a plethora of technological wizards is your best bet at getting your tenancy off the ground with the least amount of hassle.
World Cup-Related Sales in Dubai Unlikely To Slow Down
There is no shortage of luxury residential property for sale in Dubai. During the first half of this year, the average price of a luxury home was around $7.3 million, which is more than four times the average for the same period in 2007. As for the occupants, the aforementioned average of 6.6 people per room has remained intact. Newcomer luxury high-rise apartment towers are beginning to pop up, particularly downtown and on Mohammed Bin Khalifa Street. Most of these units are priced in millions of dollars. There is one downfall, however. The location, the lack of parking, and the fact that most tenants are foreign-born have contributed to a shortage of affordable rentals. The good news is that there are more upscale properties on the market than ever before.
Prime Areas Are Expected To Attract High-Net-Worth Individuals And Millionaires
As the UAE continues to offer tax-friendly living conditions, high-net-worth individuals are flocking to Dubai. Currently, Dubai is one of the top three places in the world for millionaires and HNWIs.
The number of millionaires in the country is expected to reach 4,000 before the end of the year. New developments with ultra-prime properties are also being launched, which will continue to attract wealthy individuals.
Prime residential prices in Dubai are forecast to see the strongest growth globally during 2023. In the first half of the year, prime prices in the city grew by 4.7%. In the third quarter, prices grew by 9.4%. This will lead to a 13.5% increase in price for the entire year.
As the UAE remains the preferred place for wealthy and high-net-worth individuals, the Dubai property market is booming. In addition, the country’s economy is expanding.
Housing Prices Will Have to Fall Between 5-20% to Make Housing Affordable
The average cost of housing in Dubai has increased by about 25% over the past two years. With the housing market tightening and the cost of living to increase, there is a need for prices to fall to make homes affordable for middle-class households. However, some analysts predict that prices may not fall.
The cost of construction has also increased, which could limit the demand for affordable housing. Furthermore, the high-interest rates in the UAE could slow price growth. In addition, the UAE has an oversupply of homes. With limited affordable housing, rents are likely to increase.
According to a recent survey, the housing market in Dubai will experience the most significant price increases globally in 2023. Some Dubai property management analysts are predicting a 2% rise in prices in the coming year.