Buying a Property In 2021? Is It a Good Time To Invest In Dubai?
BY EXCEL PROPERTIES
Whether you are a budding investor or an end user, whatever your intentions are it is very important to understand the market and the latest trends and practises in order to make a wise and informed decision when buying a property.
Whether you are seeking to rent in Dubai or buying a home, real estate is a risky yet a rewarding investment. We will discuss the latest buyer behaviours and the benefits to buy property in Dubai. You can also read all about Why to invest in Dubai in our other article.
Even though the real estate market has seen its share of ups and down around the world, according to recent reports it shows this is one of the best times to invest in real estate in Dubai.
In November 2020, there were a total of 3,928 transactions worth AED 7.65 billion which took place in the Dubai Real Estate market. This is an increase of 15.6 percent compared to October in terms of volume and almost 10 per cent more in value. While 38.5 percent of these transactions were from the off-plan market and 61.5 percent of these transactions were in the secondary market.
As residents choose to upgrade their living, demand for ready properties in Dubai has also increased. Especially villas and townhouses in Dubai have witnessed an increase of over 500 percent since May in 2020. Ever since July 2020, the property market has seen a V shaped recovery, each month has witnessed record breaking sale transactions. The secondary- ready to move in villas have seen the second highest transaction in the month of October. It is believed that as people are spending more time at home and it has also become their workplace, it is leading to the investment in bigger, more spacious and multi-functional homes. A Total of 1013 villas/townhouses were transferred in both the off plan and secondary market. While 2031 total apartments transferred 1,128 were in the secondary market and 903 in the off-plan market.
Over the years, the emirate has garnered a reputation as a major hotspot for investment.
According to a property finder report, Dubai offers more than 7% gross rental returns. The city ranks on top, above any other Arab city when it comes to the regulatory and government support to the real estate sector. The reports further showed the top five locations for consumers searching for villa/townhouse properties for sale in Dubai were – Dubai Hills Estates, Arabian Ranches, Palm Jumeirah, Damac Hills, and Mohammed bin Rashid City.
Some of the features attracting investors & Buyers:
The cost of Mortgages has slashed down.
It is an opportunity for income generators. 4
Lower entry price points, favourable loan-to-value ratio, and attractive interest rates for ease and convenience of the buyers.
Lucrative incentives by developers for investors and new buyers on off plan apartments for sale.
New and improved laws, payment terms and property investment rules are building interest of not just high-income business owners but also for mid salaried buyers.
Looking at the trends now, it is interesting to say that no one really expected for the market to rebound so quickly and real estate transactions to have record breaking months. Taking all the above facts into account and considering how the real estate industry in Dubai is coping with the after-effects of COVID-19, things are looking up. In conclusion, buying a property in Dubai for investment purposes is going to be a decision one will not regret.
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