Is Buying property in Dubai a good investment? The answer is a big YES!
Is buying property in Dubai a good investment? What are the benefits of buying property in Dubai? Are these the same questions that you have in your mind? If yes, you are going to get some solid buying property in Dubai advice in this article.
To understand whether buying property in Dubai is a good investment or not, I would suggest you to get into the basic reasons of buying real estate in any part of the world. Of all the products that you can buy with money, real estate is the most precious and obsolete one. Do you know why? Because there is no more land being produced in the world. This earth is the only piece of land that we have and before someone else buys the portion that you like, why not you claim it under your name?
Wondering the benefits of investing in Dubai? Investors looking at buy-to-let properties in Dubai can expect an ROI of 5% – 6% for ready properties. The Q1 2019 market report reveals that the ROI for apartments in Dubai Marina stands at a strong 6.4%, while units in Downtown Dubai deliver rental returns of 5.4%.
Why People Invest in Property?
Apart from the advice that your grandfather gave you to own a piece of land or have your own house, there are several reasons for which people invest in real estate. Some people save money their entire life to build their dream home. At the same time, there are people who have abundance of money and they realize that investing their wealth into real estate is the best way to keep it secure and grow it with the passage of time.
Regardless of which category you fall into, the dream of buying a home never gets old. Even the poorest man in the world keeps the desire to own his own house one day.
We can safely assume that people buy property as family home, to use as a holiday home or add into their investment portfolio and make rental income from it.
If you have been living and working in Dubai, chances are you feel outraged to pay high rentals every year. Why not buy a property instead of renting one? The question is, can a person easily buy property in Dubai and make his monthly mortgage payments. The answer is Yes.
If you are a salaried person and make a minimum of Dh15,000 per month, you are eligible to apply for mortgage. After the market crash of 2008, mortgages on properties had completely vanished in Dubai. However, over the course of last few years, Dubai’s real estate market has become very mature and many affordable housing projects have been launched during the year 2015 as well.
This reminds me of the case of a recent client who was renting an apartment in Dubai Silicon Oasis (DSO) for more than two years and finally got sick of making rent payments. One day, she called me to explore her options and to her surprise, there were many properties that were available in her budget and bank was also willing to give mortgage approval too.
Long story short, she applied for mortgage, got the approval, placed the offer and today, she is living in her own apartment. The monthly mortgage payment is almost equal to the monthly rent that she was paying for her previous apartment.
While buying a property to live yourself in any part of the world, there are certain things that have to be kept in mind.
The first preference while buying a family house is to buy it in a city/ community that is family friendly. Dubai, from the beginning of its development has been a family friendly city. Every community in Dubai is well designed and planned. In every community of Dubai, you will find public parks, super markets, leisure spots, nearby shopping malls and cinemas etc.
This article from Telegraph also adds much value to the family friendly status of Dubai as well.
Tips for First – Time Buyers Investing in Dubai Real Estate
First-time buyers looking for the best areas to invest in Dubai should keep a few indicators in mind. The most important factor when investing in Dubai real estate 2019 is location. If a development has a great location within the city, that’s a prime indicator the project will perform well. However, one of the advantages of investing in Dubai is there is no central location that excludes others. Dubai is designed in a manner that ensures every large community is central to itself with schools, parks, retail and dining options. These well-designed communities are proving to be one of the strong reasons to invest in Dubai real estate. This trend is also echoed in the Q1 2019 Dubai market report, which shows that well-integrated communities like Jumeirah Village Circle (JVC) and Dubai Sports City are rising in popularity with those looking to invest in Dubai real estate.
What is the Future of Dubai Rela Estate
The Dubai real estate forecast is extremely positive. There are already many reasons to buy property in Dubai – but the city isn’t done developing yet. Dubai real estate has made its mark on the world map and is compared to global hubs like New York, London and Hong Kong. With the Expo 2020 projects like the Dubai Metro extension and Al Maktoum International Airport taking shape, the Dubai real estate market is likely to see a positive impact in the coming years.