For years, Dubai has been the center of attention for real estate investments. Not only has the emirate’s tourist visits for each year increased, but the region has also undergone major developments. While the numbers pertaining to the real estate inventory are piling up due to a large number of projects being completed at an unprecedented rate. It’s wrong to say that transactions aren’t being made.
A glance at the market can reveal to experienced investors that the trends are changing. Where once people were searching for hot localities and compromised on residential spaces, they’re now going for the opposite. As per data obtained from various property portals, many people are now inclining towards investing in spacious residences.
Buyer-Friendly Incentives
Following the drastic situation rendered by the COVID-19 pandemic the previous year, developers. As well as governmental departments have offered stimulus packages and incentives. Aiming to bring the declining transaction numbers up again. These packages have included rent-to-own schemes. Fee waivers, reducing up-front costs, cash rebates and even extended post-handover payment plans. Those who wish to sell properties immediately after handover have a huge advantage with lower payments.
Conglomerates and renowned developers that have partaken in offering these incentives include Aldar, Meraas, Dubai South and many more. While they’re still working on delivering on new projects and deadlines. These master developers have also worked on marketing their promotional campaigns.
Making it easier for first-time buyers and ex-pats to engage in long-term investments. There are several off-plan and ready-to-move properties that are noticing increased interest. Suffice it to say, it’s the best time for new investors to get into the market and yield ROI from quality investments.
More Projects Underway
Where some thought developments should be halted following the pandemic lockdown and consequent delay of the Expo 2020, developers in Dubai didn’t. While many speculated that to go on increasing the excess in supply would mean a further decline in prices. Developers and government departments held meetings and sessions to discuss inevitabilities and possible solutions.
While this was happening, the rest of the world was looking at the UAE to see how it’d fare in the crises. As we all know, the country has never disappointed its people or its investors. Even against all odds, construction didn’t halt and resultantly, many new commercials. As well as residential projects are entering the market today.
Some of the most notable ones that have a huge impact on transaction numbers included. Stella Maris in Dubai Marina, residential projects in Dubai South and those situated along the Dubai-Abu Dhabi route. In addition to this, there are exciting new luxury residences being offered in Marina Arcade, Digi Shree, Suhail Bahwan Tower, Emaar Burj Crown and the iconic Shapoorji Pallonji Imperial Avenue.
Lower Prices
Over the past 12 months, there have been many changes that have altered the status quo of the Dubai real estate market. One of the most significant ones would be the decline in property prices throughout the region. Factors such as the increase in real estate inventory numbers and investors backing off paved the way for current market trends. While the prices for apartments have declined by 9.5% on their year-on-year value, villas in Dubai have fallen by 7.2%.
This goes to prove that things are looking well for buyers who’re hoping to enter the market. There’s much to go on with for first-time buyers. Especially, if you look at the financing options available in the market. Before, expatriates in the UAE could go for financing about 75% of their total purchase value. Now, that value has gone up by 5%, making it possible for any ex-pat investor to finance up to 80% of the total purchase. The figure goes up to 85% for Emiratis who are looking to become homeowners.
Takeaway
All in all, it’s a great time to be in the investor market of the United Arab Emirates. With new developments underway, anticipations for the Expo 2020, now scheduled in 2021, on the rise, decreasing prices as well as helpful buyer incentives, it’s safe to rely on Dubai real estate. Not only are the rental yields and property prices going to rise in years to come, but the supply that’s in excess right now will be a rare stock as well.