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5 Things To Consider If You Are Looking For Properties To Invest In Dubai

Posted by rachit on 25/08/2021

So is 2021 a good time to invest in real estate in Dubai? According to some research reports, prices are heading towards a decade low and it appears that deals are being struck.

While there are still a number of challenges that Dubai’s residential market currently faces – a historic supply crunch and now due to the recent easing of demand levels in the Covid-19 pandemic – there are many underpinnings from relatively strong activity levels. compelling factors.

Given the more downbeat economic backdrop, a range of market fundamentals have shifted during 2021, according to Sweet Home Real Estate Investments GmbH. These changes, listed below, have and will continue to support the activity of both investors and owner-occupiers.

Here are 5 reasons to buy property in Dubai:

1. Revaluation:

It will come as no surprise to many market observers that average residential prices in Dubai are not far from the historic lows of the last decade. However, it is important to remember that Dubai is a collection of micro-markets, so headline numbers do not always tell the full story, given that we are looking at the early stages of a recovery.
Secondary areas and regions with an influx of supply are certainly still seeing significant price declines, however, some key areas such as Palm Jumeirah, Jumeirah Bay and District One posted average per square feet in the first eight months of this. Have seen an increase in price.Year.

2. Financial Cost:

The reduction in interest rates by the UAE Central Bank has led to a fall in the cost of borrowing. The UAE’s six-month EIBOR rate has fallen from a high of 3.14 per cent in early 2021 to a low of 0.50 per cent in mid-September 201. Mortgage rates have followed suit, with the average post promotional mortgage rate falling in September 2021. Both the investor and the occupier will take advantage of these very favorable financing rates.

3. Paid Plans:

Lower financing costs are not the only way market affordability is improving. Looking at the current market conditions, developers have always started offering favorable payment plans to woo the demand. By 2021, in Dubai, on average, where payment plans are offered, 28.4 percent of total payments are structured to be paid post-handover, up from 6.6 percent in 2016. Developers are now demanding even lower levels of payment during construction. ending.

4. Loan-to-Value (LTV) Ratio:

As part of the UAE Central Bank’s economic stimulus package, the LTV ratio for first-time buyers has been increased by five percent for all property purchases, including off-plan property mortgages. High LTV ratios have historically been cited as one of the most significant barriers to owner-business, particularly among expatriates, with this easing of regulations expected to encourage many to change tenures. .

5. Visa Regulations:

Visa rules have also been relaxed in recent days, this change was in addition to several regulatory changes announced in 2019, including the declaration of 100% on-shore business ownership. The new laws include a five-year retirement visa for people over the age of 55 with an investment of AED 2 million or more in the property market, those with an income of more than AED 20,000 per month or more than AED 1 million in capital.

Other options include five-year visa terms for investors making purchases above the AED 5 million limit. Apart from these asset related visas, several types of business investment visas have also been approved. A capital investment of more than AED 10 million in the venture may obtain a 10-year visa, where up to 40 percent of the investment may be related to asset purchases.

As many of these regulatory changes, such as changes in visa regulations, are directly linked to property ownership, the long-term fundamentals driving demand for real estate in Dubai and indeed the wider UAE have remained stagnant.

For all the latest information on Dubai Properties for Investment, Top Apartments Dubai, Properties in Dubai, Vacation Properties in Dubai and any other information regarding Real Estate in Dubai, please visit our website Sweet Home Real Estate Investments GmbH to get the best solutions for your need.

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