Dubai Real Estate Market Outlook: An Honest Review
The Dubai real estate market is one of the promising markets in the global property arena. The Emirate has for a long time shown outstanding performance and returns.
The ROI for first-time real estate investors has grown exponentially in the last 12 months, thanks primarily to the stable and welcoming real estate atmosphere for property investors who are looking to settle in the city.
The majority of real estate investors interested in Dubai homes for sale are those that are planning to move in the future or have already moved to the city.
The Future Was and Is Still Bright for Real Estate Dubai Market
Before coronavirus, the real estate Dubai market was picking up pretty well in the first quarter of 2020 with a considerable hike in sales transactions just before the outbreak in the country.
In Q1 of 2019, transactions for residential properties increase by 50 percent while the absorption rate for these properties shot up by 5%, as opposed to the same time in 2018.
We have also witnessed an impressive increase in demand for off-plan properties since the start of 2020. This is partly attributed to the promotional discounts, borrowing rates, and alluring payment plans, not forgetting incentives offered for DLD fees.
Most developers have handed over their projects or almost doing so. Areas of interest include Business Bay, Jumeirah Village Circle Downtown Dubai, and others.
Apartment Vs. Townhouses ad Villas
Approximately 75% of new projects released to the market this year were apartments, followed by townhouses and villas.
Even though there have been restrictions on movement and consumer uncertainty, the real estate Dubai market has had a positive influence on rental investors and property buyers alike.
Good News for Local Investors
Banks and other financial institutions have lowered their mortgage caps and interest rates to attract more local investors into applying for home buying loans, which is an impeccable opportunity to own a home in Dubai.
Property portals have recorded a surge in the number of property enthusiasts looking for property for rent in Dubai online, due to the ongoing pandemic.
When you factor in the short-term, medium, and long-term investment disposition, the current environment offers the best platform to invest in the real estate Dubai market.
Industry experts also argue that residential transactions are bound to increase. This is because a majority of experts are currently working at home, and it will remain like this for a long time. Consequently, many households will move a lot.
Support from the Government
The UAE Central Bank has offered a hefty stimulus package to help curb the impact of the epidermic and support the real estate market.
Real estate in Dubai is a promising venture and perhaps the safest and lucrative in the region. That being said, it is important to work with a reliable real estate broker to help you understand the market better and find you a suitable investment opportunity.
At Real Choice Real Estate, we endeavor to help our clients achieve their property investment goals and dreams. Contact or email us if you have any questions or concerns.