By Anitha Lakshminarayanan
Why should you buy a home in Dubai, and before I begin to elucidate the top insights about the market, it reminds me of a small story, Last week my friend Sheba and I were sitting on my balcony and chatting. Sheba was winding up and going back to India and she felt that she could’ve bought a home here that could give her rental returns even if she got back to her heritage, and wanted to live there. Sheba’s story stimulated me too and I was wondering whether to buy a home in Dubai and here a few facts to ponder over:
- First of all, Dubai is a city that has sound infrastructure along with topmost luxury and comfort and is one of the fastest growing cities in the MENA region. With Non-oil GDP growth of 3.3% in 2017, Hydrocarbon GDP growth of 2.9% http://www.worldbank.org/en/country/gcc/publication/united-arab-emirates-economic-outlook-october-2017
- In terms of population, especially the growth of Dubai urban area is of 3.65% as per https://www.globalmediainsight.com/blog/uae-population-statistics/
- Expected population growth in UAE is of 1.5% in 2018: http://worldpopulationreview.com/world-cities/dubai-population/
- Despite its developing economy, there have been mixed reviews of the real estate market and the recent plummeting of real estate prices not only in Dubai but the world over. Even so, one can expect the prices in Dubai to go up as it has bottomed out after correcting itself for the past 2 years.
- Not only that even the most expensive real estate markets are being impacted by the economic climate change whereas Dubai yields are about 5-10% and if you wait long term, you will benefit from the rental income tremendously.
It’s a buyer’s market
- Although it’s a buyer’s market right now, the rental market is very competitive. In spite of the fact that it is saturated with supply and new projects to be handed over. The current regulations help in controlling the supply further.
- Most of the realtors feel that it is encouraging to see heavy transactions in Q4 2017 and that is a good sign so far.
- For that matter, any property investment is long term and if you wait for a long-term, you are definitely going to yield returns and the best returns are in Dubai Silicon Oasis, Dubai International City, Dubai Sports City, Dubai Investment Park and Al Furjan
- Since it’s a renters market, it is also ideal to invest in prime locations now such as Jumeirah Lake Towers, Dubai Marina, and Jumeirah Beach Residence
Dubai land prices up by 2.7 %
- The prices are reasonable, especially in Dubai land where the apartment prices are actually up by 2.7 % from a year ago, In addition to Dubailand, Dubai Sports city continues to do well too as several projects are getting completed there.
So Dubai market is all about yield and capital returns whereas in other markets, Hong Kong, London, New York, it’s all about capital appreciation. If you look at net yields in Dubai, you can get 5-10%, implying a payback period of 10-20 years.
If you would like to place banner ads on this blog, PR copywriting for your real estate business or blog posts and articles and copywriting help such as direct mail, Radio Ads, then please contact Anitha Lakshminarayanan a freelance journalist cum writer at 050-1845628 or 050-4627856