Following the ranking of being the second-best city in the world for expats, Dubai recorded AED4.8 billion worth of property transactions in the last week of November. Properties and real estate in Dubai had been valued at very high prices and are considered one of the most sought-after places in the world for property investment. Since the real estate investment restrictions are minimal, expats or people from outside also can buy real estate in Dubai.
Real Estate Industry In Dubai Growing
There are areas in Dubai that are labeled as freehold, these places can be bought and owned by expats on a lease basis for ninety-nine years. The mortgage rates and property rents in Dubai have been rising and this has left the expats in a muddy situation. The investment that was required in buying the property through installments was almost equal or even in some cases less than the rents that were levied and these increased every year.
According to the Dubai Land Department (DLD), a total of 176 properties were sold and these were worth around AED998.19 million. Jebel Ali, one of the most influential industrial areas in Dubai with a flourishing residential development saw the largest number of sales of eighty-one which was worth around AED 285.43 million. A total of 1052 apartments and villas were sold and these were worth AED 2.32 billion.
One of the chief reasons for the increase in property buy out is the inflation happening around the world and this also indirectly leads to the increase in property values and rents. So from a buyer’s perspective, it would be better to buy a property and pay off its monthly interest rates than to pay a hefty rent amount that will increase year after year.
The total amount loaned from the bank for buying the property can be reduced by paying it on a monthly basis but rents will only keep increasing. For a person who plans to stay in Dubai for a long time, investing in property seems to be a good option as of now.
There are different real estate pockets in Dubai that will yield more investment benefits than others. Palm Jumeirah Housing community, Dubai Marina Housing community, Business Bay Housing Community, etc. are a few examples.
Owning a property in these places will require heavy investments as these are some of the major elite residential areas in Dubai. Downtown Dubai, Mirdif, Dubai sports city, etc. are some of the more affordable options. According to your income status and preferences, you can invest in these areas. Also, foreign residents are eligible to get mortgage loans without much hassle.
Even though the current mortgage rates are high, in the long run, real estate investments in Dubai can turn out to be a better deal. People who get the “golden visa” are eligible to buy properties and this is one of the strategies that has been initiated by the Dubai administration to increase foreign investments.
Dubai boasts itself to be an international tourist hub and a global village. It is expanding at a very fast pace and multiple investment opportunities are blooming in this emirate city. The lack of any sort of property or income tax in Dubai is also another great reason for investing. This will increase the investment returns much more as nothing is going towards tax payment.
The projected investment returns in Dubai is around seven percent this year which can increase in the coming years as more and more business initiatives, infrastructural development, start-up initiatives, etc are being set up.
Dubai offers opportunities for people of different income groups and this itself is the highlight of the city where there is a space for everyone to come and build a future of their own.
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