The best time to invest in the Dubai property market is now, given that current price levels and lucrative options on offer make it ideal for this, said FIDU Properties, a leading Chinese property company based in UAE. It also added that prices have bottomed out and are at par or more affordable than in 2005, when the freehold market began in the Emirate.
In the current Dubai residential market, landlords are more flexible than ever before when it comes to price points or rental-free periods, or even defining payment terms, which is the best any tenant can aspire for.
From a developer perspective, they can expect yields of between 7-9 per cent in the mid-market segment and despite corrections, rentals are still high. Dubai still needs about 30,000-40,000 new homes each year, as per industry estimates, FIDU properties said.
From an investor’s viewpoint, developers are offering heavy incentives to attract property buyers with increased preferences to buy instead of renting these days with convenient long-term payment plans of five to 10 to even 15 years for a ready property for home buyers.
Developers are recognizing this trend and the need to entice tenants into investing in the properties and in turn offering them payment plans that are convenient and hassle-free. For investors, it makes perfect sense to invest in an area which offers the highest returns on investments and long-term appreciation.
Moreover, with the Real Estate Regulatory Agency also coming up with its supporting regulations, things will only improve from here on. RERA is regulating the market and pushing the ‘sick’ projects into liquidation. This can be leveraged adequately in view of the wide project mix on offer.
Landlords are concurrently upgrading their properties to make it stand out from other identical units and offering furnishing and all-inclusive pricing to make it lucrative for the buyers.