The real estate market in Dubai is one of the most exciting sectors globally. Prices have been soaring for years ad shows no signs of slowing down anytime soon. If you are planning of buying a property in Dubai, it is essential to know about the latest real estate market trends to make an informed decision.
Property developers of Dubai accomplished one of the largest quarters in history. Total sales transactions in September 2022 8,649 transactions were valued at 24.24 billion. Most of these transactions were sales of apartments from leading property developers in Dubai. Sales of new off-plan developments increased by 95% and secondary market resale sales increased by 75 percent.
According to CBRE’s latest Dubai market report, average residential property prices increased by 10.9 percent in the year to May 2022, suite prices increased by 9.6 percent and villa prices increased by 19.8 percent.
According to the survey, rental property prices in Dubai increased by 0.4 percent month on month, while villa prices increased by 1.2 percent. At the high end of the market, Dubai property developers have seen some of the biggest increases. The market for luxury real estate in Dubai has detonated in the past year, with prices increasing by nearly 60 percent.
Buyer’s Protection Laws in Dubai
In order to provide safeguards to the investors of off-plan property, the real estate industry comprises certain rules and laws. For some reason, the off-plan properties seem to be risky the Dubai Land Department (DLD) and Real Estate Regulatory Authorities (RERA) have made several processes so that the buyers do not have to face cancellations and delays. One of the commands of the law is that the payment for the off-plan homes in Dubai is made at institutions that are approved by DLD. In this way, the confidence of the investors gets uplifted.
Attractive Payment Plans & High ROI
Proclivity for off-plan properties in Dubai is increasing as buyers plan to invest in new projects.42 percent of buyers in Dubai are interested in off-plan units, according to a recent report by property finder. This is a remarkable growth from the 32 percent who said they were interested in off-plan properties in 2017. The report credits this shift to several elements including attractive payment plans and the potential for capital appreciation. Off-plan properties have become increasingly famous in Dubai as developers offer the best payment plans. This often allows buyers to pay a small down payment upfront, and the rest is due upon completion. This will make an investment in property more attainable to buyers who do not have the full amount required for the readymade property.
Along with attractive payment plans, the potential for capital appreciation is another element driving interest in off-plan properties. When a property is bought off plan, it is usually sold for less than the targeted market value on completion. This means there is potential for healthy income when the property is ultimately sold or rented out.