Is It A Good Time To Buy Property In Dubai?
By Rylie Holt
As Dubai continues to develop and progress, the property prices in Dubai will continue to be on the rise. According to The National, Dubai’s real estate market hit its eleven-year high in the year 2019 when the price of property rose a whopping 20 percent in comparison to the previous year. With the increase in supply for real estate, a younger workforce that is moving to Dubai to look for better employment opportunities, and of course, with the upcoming Dubai Expo of 2020, investors are waiting with bated breath to see how the Dubai real estate market fares. And that brings us to the question at hand, is this a good time to buy property in Dubai? Before you start looking for properties for sale in Dubai, consider the below-mentioned factors that might help you decide whether or not this is a good time to invest in Dubai’s real estate market.
Real estate supply
Dubai sees a massive increase in the supply of real estate, both in residential properties as well as commercial properties. Investors feel that there needs to be some form of supply control to achieve price realisation. However, with the upcoming Dubai Expo, it is expected that millions of tourists will visit Dubai, many of whom might invest in Dubai’s real estate market. Also, given the increased interest of foreign investors to invest in Dubai’s real estate market, it seems that the increase in supply will only lead to a rise in demand. As both the supply and demand increase, the prices of property will skyrocket, making this a great time to invest in real estate in Dubai.
The upcoming Dubai Expo will attract millions of tourists to Dubai, some of whom might stay for a few days while some might remain for a few months. Most of these visitors are going to look for a place to stay which will include short-term rentals, long-term hotel bookings and of course, some might even choose to purchase property in Dubai. If you’re thinking of investing in Dubai’s real estate market for rental income, then this is definitely a great time for you to invest. It is expected that the demand for short-term rentals during the Dubai Expo might just exceed the supply. The question at hand is, what will happen after the Dubai Expo?
The government of Dubai has come up with various initiatives and schemes to encourage people to move to Dubai. One of the most prominent schemes being the Golden Card which allows entrepreneurs, scientists, investors, and students, all of whom are at the top of their field, to get a ten-year renewable residency visa. The Golden Card has been provided to hundreds of individuals and their dependents. As the number of people that are moving to Dubai due to the Golden Card starts to increase, so does the demand for property. If the demand keeps growing at a stable price, it will eventually move past the supply and lead to an increase in property prices. Hence, if you’re thinking of buying a property in Dubai for personal use or investment purposes, now would be a good time to do so.
Foreign investor interest
Foreign investors are very interested in buying a property in Dubai. First and foremost, investors do not have to worry about paying high taxes on their rental incomes because this income is tax-free. Secondly, investors don’t have to worry about the safety and security of their properties or tenants because Dubai is considered to be one of the safest places in the world. Third, Dubai is one of the most visited cities in the world, making it a great place to invest in buy to let properties. If you’re thinking about purchasing a property in Dubai to earn a rental income, then this investment will be highly profitable.
There are so many reasons to buy property in Dubai; one of the main reasons to invest in Dubai’s real estate market is that this city is still developing. Dubai has several residential projects, commercial projects, housing projects, and off-plan properties that are still in the phase of development, which makes this an excellent time to invest. After a few years, once the supply of real estate becomes relatively stable while the demand for property continues to rise, the prices of property will just shoot up. If you’re looking to buy property in Dubai as a long-term investment opportunity, then this is a great time to buy property in Dubai. Why not connect with the Allsopp & Allsopp property experts to find your perfect property in Dubai?