The question whether one should invest in Dubai’s real estate market or not has been floating around the air for months, especially after the recent drop in property prices and the spike in rent. Investors and residents alike are wondering whether it is safe to put their money into realty. Property Investment Seminar presented a VIP panel of expert professionals in the field of real estate, and shed light on the pressing questions regarding investment.
The Right Climate
A number of factors play a role in Dubai’s position in the middle-east as a strong economic force:
- Political stability: a factor that sets the country apart from its MENA neighbors. The UAE has become a model of political stability at a time when some nations in the region are witnessing unrest.
- Changing regulations: recent years have seen continuous change and alterations in ownership regulations and laws in the Emirate. These all seem to be in the best interest of the owner.
- Massive development projects: never underestimate the pace at which Dubai moves, both economically and socially.
The Right Prices
Dubai property prices are sinking noticeably faster than rent rates, and for those looking for the right moment to tap into the real estate market, this could be it. Experts agree that the current prices in the market are in favor of those who buy, not rent. As rental rates continue to frustrate residents who are eagerly waiting for them to fall, recent findings show that it is cheaper for a person to buy a property in Dubai than to rent one, especially if they are planning on settling in the country for the long term. To simplify things further, think about it this way:
- When you are renting a property, you are spending money on a temporary service.
- Rental rates although relatively low now compared to previous years. Experts predict they will begin to rise again as we get closer to Expo 2020.
- At the current rates, it is cheaper to pay a mortgage loan than to pay rent on a monthly basis.
- When you purchase a property, you are paying for a service that is permanent.
- Right now, real estate prices are lower than previous years, but are expected to rise closer to Expo 2020.
- Unlike rent, a rise in property rates is very beneficial for the owner.
Real Investment Opportunities
When it comes to the opportunities real estate investment presents, Dubai has plenty. However, the main investment opportunities remain linked to Expo 2020 and its effects on the economy.
Experts agree that investing before Expo 2020 is a guaranteed win. Dubai is expecting 17.5 million people to visit the city, all of these people need a place to stay. So if you are looking to invest in property, then seriously consider buying to let either long-term or Short-term/Holiday Home basis. Aside from visitors the Expo is creating thousands of job opportunities and officials are expecting a large number of expats to relocate to Dubai.
Aside from winning the bid to host Expo 2020, Dubai enjoys a reputation for being the number 1 expat destination in the Middle East as recent studies have shown. All figures indicate that Dubai has plenty to offer, and is a safe choice for first time property investors.