NOW is the time to invest in Dubai real estate

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2016, the Year to Invest in Dubai Real Estate


2016 could very well be the best time to invest in Dubai real estate. Ever since its revival in 2012, post the 2008 / 2009 financial debacle, the market has looked good and strong. Although, when real estate prices began to surge in 2013, IMF showed concern and investors did begin to worry. However, the government and the UAE central bank were quick to act, and put in place measures to cool things down.
A slew of new measures were imposed to secure the market from any possible vulnerabilities and to prevent the formation of a bubble in the near future.  Mortgage Caps were introduced and the transaction fees were enhanced, in a bid to stabilise the market.
As a clear and expected outcome of these regulations, the property market slowed down in the year 2015, and prices declined across the board. However, with World 2020 Expo approaching, prices are bound to pick up again. Experts have reasons to believe that prices will continue to fall for a while, but, the trend is set to reverse soon. Knowing when to invest in Dubai real estate, therefore, will be a key factor.
(Experienced real estate consultants, like Aurum-Re, could help you pick the right investment at the right time.)
Despite the fall in unit prices, the rental market remains attractive. With rental yields averaging around 7%, a figure much higher than what it is in several noted global markets (like Hong Kong and London), Dubai’s rental market is good as gold. After all, the growing Dubai population still need homes to stay.
If recent rental market reports are any indication,  Dubai’s suburbs are garnering a fair bit of attention. For quite some time now, there have been increasing demands for affordable housing options in Dubai. This is fueling investment opportunities in the more affordable locations of the emirate.
Developers like Danube, have already launched housing projects that aim to cater to the demands for affordable residences. Also, in a bid to attract more investors and buyers, several developers have started to offer better payment terms.
If a new report by Standard and Poor’s Ratings Services is anything to go by, three factors will greatly benefit the Dubai realty market. One, the lifting of sanctions on Russia and Iran; second, the recovery in oil prices; and third, a weakened US dollar.
Our advice to investors – keep your ears open, and eyes peeled!
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In : Realty

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