Dubai Property Investment in 2020
Dubai Expo 2020
UAE successfully showed the world remarkable progress, creating diverse opportunities not only to people around the globe. With Dubai Expo 2020, Dubai will take a step further in sparking innovations and highlight ideas to change the future.
In less than a year, the Expo 2020 will bring a great influx of visitors. Tourists will crowd the streets, occupy hotels, and keep the hospitality sector buzzing with the city spirit. Visits are expected to reach about 25 million when the Dubai Expo 2020 hits! Dubai will try to convert the short-time visit into long-term residencies to boost Dubai property investment.
Dubai Property Investment
As expected from the emirate's vision, they created a 50-year plan. Such vision became an indicator of the demand-and-supply trends along with the Expo 2020.
Zhann Jochinke, COO of Property Monitor, says that there are currently 50,000 new units in early 2020. Expect that Apartments will make the majority of the upcoming projects.
What indicators do we need to know to get ahead in expanding our assets and investing?
We’ve listed the top key factors based on experts’ opinions:
Rents are expected to decline
If you are renting a space, an apartment or a home, this year will be good for you. The Executive Chairman of Asteco Property Management, Elaine Jones said that the release of properties this 2020 will mark the decline of rental properties and further into 2021.
According to Zhann Jochinke, the market is offering a wide range of deferred payment plans which means a more affordable Dubai investment property. It would be better than paying rent for a house you can’t own.
In the past decade, November 2019 was the strongest month in the past decade that lifted the market for occupiers and investors. The market gained much traction as the sales increase with a total of 5,025 purchases with off-plan registration (Oqood). It’s 60.8 %, higher than the monthly average of 55.4%.
Market for Tenants
Jones continues to say that tenants will have more options in choosing the location, quality, and value. With the competition, landlords will make sure that their properties are maintained well to attract and keep the tenants around. The demand for maintenance services and professional property management will increase as property owners ensure high occupancy.
Jones also says to expect new standard terms for payment in 2020 like direct debit payments.
The international investors see the purchase of income-generating assets a good investment without capital. Property tax represents a great opportunity for investors. In terms of demographics, did you know that China is one of the biggest markets operating in Dubai?
Now, a larger segment of the population can grab this opportunity and Dubai property investment.
It’s a tough outlook for those with mortgage commitments and developers. The development cost is at its lowest practical level which makes the capital values unlikely to reduce any further.
Balance of Demand and Supply
Amira Sajwani, Damac Properties Senior VP- Operations, says developers will aim to create a balance between the demand and supply of projects. The focus falls on creating and aligning the supply with the aspirations of the city and the people in it.
Seize the moment and don’t miss out on a potential investment. The opportunities are endless. However, it wouldn’t make any sense for Dubai property investment to continue if it doesn’t line up with the long-term development. For more information about wise property investment, contact HBS Dubai.