There are many reasons to why property ownership has become more attractive in Dubai than that of property rental. This has been brought about by softening of prices, more choices available due to new developments, and more affordable home loans. The Dubai Land Development said that the real estate sector in Dubai went through a year-on-year increase in investments during the first month of the new year, amounting to $14bn.
The Forecast on High-End Properties
To add to the favorable climate, the government is now granting longer term visas to UAE property owners, which makes it more attractive to invest in real estate Dubai. This also serves as an incentive for investing in prime commodities that used to be unaffordable for UAE residents. Dubizzle Property revealed its insights that prime residential neighborhoods are now becoming more affordable and highly interesting for many potential buyers. Those that are gaining more interest are the following villa community developments: Palm Jumeirah, Arabian Ranches, The Villa, The Springs, and Mudon. This is a trend that is set to continue in 2019 as more investors are becoming interested in Dubai real estate investments.
Secondary property is seen to gain increased interest from investors, yet the primary property market will continue to rise with more demands for it as the Expo 2020 gets nearer. Affordable units will make up most of the off-plan developments as opposed to high-end luxury properties. Investors will still focus on quality and international investors are seen to increase particularly Chinese investors.
Continuing Increase in Chinese Investors
The population of Chinese expats in Dubai increased in the last five years by 53 percent. Currently, there are 230,000 Chinese nationals and 5,000 Chinese companies operating in Dubai. After President Xi Jinping’s visit in 2018, the China-UAE relationship has become stronger. UAE also introduced a number of policies that make it preferable for China to invest in Dubai. Chinese is listed as the third major language spoken within more than 100 schools in Dubai. There are also other more favorable economic factors such as the real estate and stock markets within China, the Chinese yuan’s depreciation, and the more positive investment market in Dubai caused by tax-free investments, high rental yields, freehold ownership, and affordability. It is also forecast that the current slump in demand and increase in supply will continue this year. The residential property is set for both investors and end-users.
If you have plans on investing in high-end properties in Dubai and the UAE, don’t hesitate to contact HBS Dubai today.