5 must-know real estate trends in Dubai
If you are looking to invest in a Dubai property, it pays to have an understanding of current trends in the market. This will help you invest wisely and get the best returns.
Right now, various forces are impacting Dubai real estate. These include the coronavirus pandemic, new government initiatives and policies, and the upcoming Expo 2020 which is expected for late 2021.
Here are 5 ways the market is currently changing for Dubai investment real estate.
Attractive opportunities available to the local market
It’s an exciting time to be a buyer in Dubai, either as an expat or an Emirati. The Dubai government, who are looking to rebuild and strengthen the property market in light of the slowdown caused by the coronavirus pandemic, have introduced new policies that should drive growth.
The UAE government is looking to extend its policies to encourage more investment. This means softened lending policies from banks, who are prepared to offer higher loan to value mortgages than previously available. These mortgages should be available on both off-plan projects and completed properties, and to expats as well as Emiratis.
In addition, buyers can benefit from a number of friendly pricing offers from property developers. Additional options such as payment plans aim to increase demand from buyers and reinvigorate the market. There are some excellent options available right now across the city, including Akoya Oxygen Vardon.
The delayed Expo 2020 will drive demand for rental apartments…
Delayed from its originally scheduled dates due to the pandemic, Expo 2020 is set to open in Dubai in October 2021. The exhibition will last a full 6 months and will bring hundreds of thousands of visitors to Dubai.
Many of these people will be exhibitors and staff who will be looking for accommodation. Rather than use expensive hotel rooms, they will be looking for apartment rentals of at least 6 months. If you are interested in an investment property in Dubai, it may be wise to capitalise on this with a property buy to let purchase that promises high ROI almost immediately.
… followed by increased demand from buyers
It is expected that Expo 2020 will drive renewed interest in Dubai. Many visitors will see its strengths as a place to live and work, or start a business here. This will result in increased demand for rental properties beyond the Expo, which will then convert into increased buyer demand in time.
Coronavirus has made real estate transactions temporarily difficult for potential purchasers of Dubai property who live overseas. As the world recovers from the pandemic and easy travel resumes, international investors will return again and overall demand will increase further.
Overseas investors will be looking for both buy to let opportunities as well as luxury properties they can occupy themselves. As well as the high standard of properties and locations, these investors will be further enticed by...
New golden residency visas for overseas investors
In a bid to attract more global investors, the Dubai government has introduced an appealing new initiative. Those who invest in the city, in property alone or through a combination of different sectors, will be rewarded with a long term residency visa. Investment can be in a single property or a portfolio of up to 3.
Both 5 and 10 year visas are available, depending on the scale of the investment. This means that investors can enjoy the same rewards as Dubai citizens, without working here or living here full time. These benefits include access to Dubai bank accounts and financial services. Golden residency visa holders can bring along their spouse and dependent family. 10 year visa recipients can also sponsor a limited number of executives.
The new golden visa — which is also available to other exceptional people such as highly-qualified and skilled doctors, scientists and artists — is proving very popular already. It is almost certainly going to fuel growth in the property market, either in luxury property as these people look for homes, or in the buy to let market.
Smart platform for property transactions will improve the process
Real Estate Self Transaction (REST) is a new SMART portal from the Dubai Land Department. This mobile app can be used to facilitate most property transactions: buying, selling, and renting. The aims are to reduce the time and inconvenience that these proceedings can take.
By reducing the documentation required for these transactions, as well as geographical limitations, landlords, tenants, sellers and purchasers can all access and manage their property transactions from anywhere in the world at any time.
The REST mobile app is part of the Dubai government’s 10X Initiatives, a part of their commitment to leading the way in SMART city infrastructure. This new technology means that it is easier than ever to invest in property in Dubai.
Why invest in Dubai property right now?
The government focus on new initiatives, good infrastructure and reinforcing market growth means that Dubai remains a safe investment. It is in a prime position to recover from coronavirus quickly and over the next few months, we will see plenty of both local and international investors claim a share of this exciting market.
Browse the site and get in touch with DAMAC to find out why their properties are excellent investments.