To invest or not to invest in the Dubai real estate market in 2016 is one question that is weighing heavily on the minds of many investors. To quell all doubts regarding the viability of such an investment, in this blog post, we present a few compelling reasons to invest in Dubai real estate market in 2016. Feel free to contact us, if you wish to explore lucrative investment properties in Dubai.
Reasons to invest in Dubai Real Estate in 2016
Property prices are falling, but the rental yield has remained positive
While it is true that the Dubai realty market is going through a phase of price correction, the rental yield has been solid. Compared to global peer markets, the rental yield in Dubai has been higher. Moreover, the property prices in Dubai are less than property prices in several other key international markets.
Schemes like Buy Now, Pay Later
For off-plan properties, the developers are offering attractive payment plans. The market is getting increasingly competitive and to lure customers, the developers have resorted to easy payment plans. These easy plans require a buyer to put up a small upfront deposit, which is to be followed by multiple instalments at multiple stages of the property’s development. The sums that are paid, prior to handover differ from developer to developer. They usually range between 30-50% of the value of the property. Buyers can pay the rest of the amount at the time of possession, and in some cases, even after taking possession. On top of this, the initial amounts that the buyer pays are being held in an escrow account by a trusted third party.
Stable and Proactive Government
Unlike the rest of the Middle East region, which is witnessing some upheavals and unrest of late, the Dubai government has been pretty stable. Also, the government has been proactive in its support of the realty market. It has taken numerous steps to address several key concerns faced by the real estate market. Also, the tax benefits that Dubai extends has always been one of the most enticing reasons to invest in Dubai real estate.
The market is mature and stable
Dubai showed great resilience in bouncing back from the disasters of the 2008-2009 global financial meltdown. In fact, so rapid has been its growth that in 2013 it achieved new peaks. Of course, such rapid growth caused serious concerns among several institutions including the IMF and the fear of another collapse loomed large. But the central bank and the government were quick to take action. Measures were soon put in place to check the unhealthy growth. Although the measures slowed down the market, but in the long term, it has ensured stability and sustainability of the real estate market.
Expo 2020 makes up for one of the most compelling reasons to invest in Dubai real estate market. Dubai is slowly inching towards the mega event and is doing everything in its power to make the event a resounding success.
By all estimates, the property prices which has been falling as of now will soon bottom out, after which the market will surge. Those who start investing in properties now will make big gains in the future. Earnest buyers who have been keeping track of the market conditions have already started bargain hunting and cherrypicking the perfect properties at the best prices.
If you too wish to take advantage of the changing dynamics of the present day Dubai real estate market, Contact Aurum Real Estate. We will guide and counsel you at each step of your investment process, and ensure that you get the best deal.
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