Is buying an apartment a good investment in Dubai?
Well, many people ask about buying property in Dubai. It is indeed worth it to buy real estate as a property investment in Dubai. The tax-free income and low mortgage registration fees are the basic factors for purchasing property in this city. It is good not only for residential but also for investment purposes.
Dubai has always been the dream destination of many people around the globe. It is all due to the quality of life it offers in this world-class city.
Due to the pandemic, the supply is being highly regulated and the increase in demand will keep property prices on the upward trajectory for the foreseeable future. It has a strictly enforced Real Estate regulation Authority that imposes transparency, provides protection for investors, and the developers who are accountable.
These rules are set forth in order to make sure that they maintain compliance more than any of their counterparts. This is also one of the factors that attract the buyers with confidence knowing that their transactions will be conducted fairly and successfully
Apart from this, If you have money, and are looking for investment purposes, then investing in the real estate business is also very profitable. You can start your own real estate business & generate a lot of passive money from that.
What makes Dubai an attractive place for property investment – The Benefits
Dubai remains an excellent place to buy a property. So, if you are also planning to buy a property in Dubai, then I would recommend you to visit one of the leading property advisors.
This article explains the in-depth information about the benefits of buying an apartment in Dubai with current year statistics of 2021.
- Renting is often expensive than purchasing
If you can manage the initial down payment for purchasing property in Dubai, then buying can be more economical than renting. The total amount that you pay for renting a two-bedroom apartment in Dubai for a few years, can be easily used as the installment for buying your own apartment in the city.
With this, you will probably end up paying a lower amount as a mortgage installment than renting for the same property.
- Sustained development and government investment in infrastructure
Dubai is persistent in leading the world in terms of ambitious, innovative development. Alongside residential buildings there are plenty of plans for recreation, leisure, hospitals, and schools etc.
In addition to this, they have new road links and retail areas which are inline for developments in upcoming years. The UAE Government has achieved their targets for sustainable development while preserving the environment in 2021.
They have also obtained a perfect balance between economic and social development. These developments will also help grow the value of your property.
- Luxury property is more affordable
According to the Knight Frank Wealth Report for 2021, Palm Jumeirah has become the most preferred location for investors. This place has the highest number of villa sales recorded since 2014.
Not only did the villa prices set a new high record on Dubai’s iconic Palm Jumeirah but also the number of home sales is the highest in almost five years.
A new record was set when the most expensive home was sold in March 2021 to a European buyer was on the Palm Jumeirah. Therefore, a total of One100 Palm was sold for over USD 30 million to the buyers in the current year.
- Attractive areas for all buyers
One of the most coveted communities in Dubai is DAMAC Hills. It is home to the internationally recognized Trump International Golf Club Dubai. It is the second golf project to be built by DAMAC Properties and operated by The Trump Organization.
The residents who want to stay away from the bustle of city life then DAMAC Hills is one such community. The district is sustainable with world-class architecture, plenty of green spaces in between buildings, and a lively vibe.
Dubailand is home to multiple distinct communities. It allures people to make investments in real estate projects. According to the Dubai Land Department (DLD), the city has seen its “best third quarter in history” for property sales transaction value.
There are also other attractive areas in Dubai for the buyers such as Amora, Premier Villas, Kiara, Bellavista, Downtown Dubai.
- Excellent rental yields
Dubai is persistently offering excellent ROI over the years to its investors. Moody’s Investors Service in a recent survey calculated that an average ROI for rental properties is around 6-7% as compared to 2-3% in New York and London.
Dubai is offering double ROI than it is offered by the world’s major established cities such as London, and New York. This assures that Dubai is a city with the safest investment to get a high ROI.
- The availability of luxury off-plan properties
Most ex-pats prefer to buy off-plan properties in Dubai. It is an unconstructed property that is purchased directly from a developer or in some cases from a first owner.
If the buyer is directly buying from the developer then the investor has to pay a 10-20% down payment and sign SPA (Sales Purchase Agreement). This is because they will ultimately result in greater profits for the long term.
Off-plan properties tend to immediately increase in value upon completion. Dubai’s real estate market has recorded 2,599 off-plan sale transactions worth Dhs4.95bn in August 2021.
It is the highest monthly value documented for off-plan properties since
Brokers will always promise about the best areas to invest in the property or excellent rental yields from the particular places, but the truth is all about finding the right project with the best offer.
Buyers often wait until the prices for the best places reach the bottom, but the fact is that no one knows the bottom line of a market when the prices start going down or rise up.
If it gets too late then usually by then you have already missed the opportunity to invest. Therefore, according to the fundamentals & economic evidence of 2021, now might be a great time to invest in Dubai’s property market as the city is in a strong position for growth in the upcoming 5 years.
So, whether you are intending to live for the long-term or short-term, buying a property here is an excellent investment. Share your experience with us and let us know what you think?