Famously known as the concrete city, it’s a city where dreams come true, literally. In a world of futuristic buildings, big international names making their foray into retail and housing, fantastic skyscrapers and innovative technology utilised for best-in-class infrastructure facilities, who wouldn’t want to own a slice of the pie in Dubai? Movie stars, both Hollywood and Bollywood own their amazing apartments in Dubai, city of the Burj Khalifa, penthouses that simply wow and take your breath away, enticed already – let’s see if this is the right time to invest in a property in Dubai and examine the why’s and how’s of it.
Yes, the trade pundits agree that THIS is the right time to invest in property in Dubai. Simple, buying a house or investing in a property makes the most economic sense right now owing to lower prices and higher yields. As borne out by data released in the first quarter of 2015, Dubai’s house price rises in 2012-14 were more or less severely checked in 2015 and the rate of decline was pegged at 2.72 per cent for the first quarter of 2015. Meaning – buying a house has become more affordable in Dubai – compared to earlier years.
At the same time, the gross rental yields in Dubai are considered to be one of the highest in the world. So, while buying became cheaper, investors who were looking at investing in a second-third home merely for good investment options. The high rental yields mean that they would earn handsomely on their initial capital investment. The returns would probably be more than what would be expected in other real estate markets. Supported extensively by Dubai’s fantastic growth story [which is less oil dependent and more diversified] it means that investing in Dubai’s present will ensure YOUR future is secured. It also means that after buying a house, investors start earning money from Day One. Their initial investment in a property doesn’t have to wait for a certain time to lapse for them to realise their capital, rather, the property gets rented out very fast. Supported as it is by an amazing infrastructure and with the strategic location, it makes it a smart destination choice for real-estate buyers.
The analysts also believe that since the property prices are on a low for some time, 2016 will prove to be a good year. After the mega-boom in real estate and property prices seen in 2012-14 and the drastic shrinking market witnessed in 2015, in 2016, the prices are bound to pick up. This will mean that if you have made the smart decision of buying property in Dubai, you would just stand to gain from the price rise.
Another reason, why it makes perfect sense to buy right now is that local real-estate firms say that the equated monthly instalments will be lower than the monthly rental outgo. In fact, as per the new rules, homeowners have to put 25 percent as down payment for buying completed properties. So, it is the right time to become a homeowner and enjoy the benefits of a house in Dubai.
Just keep in mind a few things when buying that property in Dubai. Select a property which is close to the beach or has access to the beach, golf course, or part of some featured and iconic development such as the Downtown, etc. If it is near to a metro, then it’s even better – the returns will be that much higher. Also, look at the payment terms and plans carefully investing in a foreign land comes with its share of concerns so read between the fine lines¸ ensure that you comply with all the rules and get the cash ready in hand. Never shell out extra cash yet at the same time, only invest in a property that you think is affordable.
So, come be a part of Dubai’s investment story and own a slice in the real-estate here!