According to property experts, investing in the real estate market of Dubai will be more popular in the fourth quarter. The reason is the attractive prices for Dubai’s properties. In fact, the low prices have been due to pro-active government measures, moderate declines and renewed interests from first time home-buyers and investors.
Also, the market is predicted to steadily return to vibrancy. However, it will be slow. According to the Dubai Land Department’s (DLD) report, the value of Dubai properties has increased by 12 percent compared to last year. In fact, despite the 12 percent rise, the property price in Dubai is still the lowest among main cities. Besides, Dubai’s properties are among the most desirable ones in the world.
The report of Bayut has showed that the property market of Dubai offers incredible benefits to investors, buyers and renters in the last quarter of 2019. It is interesting to note that buyers and investors are interested in suburban areas, while tenants are benefiting from favorable prices in established neighborhoods.
As the report says, home buyers are fond of areas such as Dubai Marina, Palm Jumeirah, Downtown Dubai and JVC. However, those who want to rent properties are interested in areas like Mirdif, Jumeirah, Dubai Marina, Al Nahda and Bur Dubai.
Based on the Bayut report, the average property prices in Dubai have showed a steady decline. The comparison has been between the second quarter and the third quarter of 2019. Suburban areas like Dubai Silicon Oasis and Dubai Sports City have been popular among the investors. These areas also showed a decline in property prices; however not significantly.
The cost-effective properties also have gained a growing popularity among the investors, especially among first-time buyers. To be more precise, these kinds of investors accounted for 66 percent of the investors in the real estate market of Dubai for the year 2018.
PNC Menon, founder and chairman of Sobha Group, has said that Dubai is a sought-after tourism and commercial hub with a maturing market. This is what attract international investors to this city. In addition, Expo 2020 have increased the confidence of investors in Dubai. This is tangible in the real estate sector of Dubai. So, there cannot be more ideal time than now to buy or invest.
Haider Ali Khan, CEO of Bayut, in the final quarter, has said that property sector of Dubai shows a steady growth. It results in a yearly rise in GDP of the UAE.
Moreover, it is interesting to note that more than 88.5 million people have viewed properties in the H1 of 2019; more than ever. This shows the interest of home buyers and the investors in the property market of Dubai.
Furthermore, it should be said that the most desirable area for apartment sales is Dubai Marina. However, Palm Jumeirah is the most sough-after area among those who want to buy villas. Most of the areas in Dubai have witnessed declines between 4 to 6 percent. Besides, the prices in areas like Dubailand, International City and Mudon have been stable.
Niall McLoughlin, senior vice-president, Damac Properties, said that investors in Dubai are people with a variety of cultural and social backgrounds with diverse lifestyle requirements.
Property developers have focused on newer areas such as Al Qudra to develop large master communities like Akoya and Damac Hills. These locations are among the desirable ones due to peaceful and tranquil surroundings and easy access to the city center. These are the most prominent reasons attracting certain customers. However, a very different group of customers prefer premium areas such as Dubai Marina and Business Bay. Actually, these kinds of customers are those who prefer the urban lifestyle and access to the big malls and commercial places.
This is the reason why Damac is interested in hospitality and residential developments in these areas. Due to some ups and downs in the property market, buyers now can buy prime properties at affordable prices. So, the diverse area selection of developers has created a favorable situations for the buyers and investors.
The most surprising point about property prices is the notable decline in the luxury area of Palm Jumeirah. In fact, in this location, properties including apartments and villas have experienced a decline in average sales price. In the apartments sector, the average price per square feet decreased by 8 percent (from Dh1,426 to Dh1,311). In the villa sector, there was 6.6 percent decline (from Dh 2,358 to Dh2,201). All of these happened in the third quarter of 2019.
Jumeirah Village Circle is an affordable community offering 6.8% rental yields for villas. Also, International City suggests 9.4% for the apartments.
The most popular areas among those tenants looking for apartments are Dubai Marina and Al Nahda. However, those who are interested in villa rentals prefer Mirdif.
In addition, it should be said that Dubai Government is doing its best to safeguard the interests of tenants and investors. Besides, the government of Dubai has put forward policies in order for the real estate sector to be valuable and also competitive. According to the data, suburban areas are popular more than ever. These areas include JVC, MBR City, Dubai Silicon Oasis and Dubai Sports City. All of these factors plus easy payment plans and attractive prices are creating a market that is healthy. This is especially a unique opportunity for home buyers and investors who are looking for high rental returns.
Dubai Land Department has registered more than 2,200 off-plan sales in July alone. In fact, this has been the highest number for property deals since December 2017. This shows the popularity of off-plan properties among the investors as well as home buyers.
Therefore, if you are looking to invest in the property market of Dubai, NOW is the best time. The market is in high demand and among the most popular ones to invest in.
*The information above is based on the recent report of Khaleej Times Website.