Most expats rent apartments instead of buying one, with the thought of saving money and sending it back to their home country.
With many expats staying for a longer time and real estate prices coming down, experts say that buying a property in Dubai can help in saving money. We have collected some reasons why:
Dubai is a buyer’s market. The average residential prices in Dubai have dropped by a quarter of its value since their peak in 2014. This comprises a 10 percent fall in apartment rates and a 9 percent fall in villa rates in 2018.
With new properties coming into the market, prices in our sector will fall by 5-10 percent this year.
It is cheaper to buy than to rent. Buying usually makes sense for anyone who is planning to stay in Dubai for seven years or more. It is cheaper to buy than rent in the long term when we take into consideration all the costs and fees involved. If one is planning to stay for a shorter period then renting is a better option than buying.
The amount is different for each person and depends on a lot of factors like the price of the property, the length of the time they are planning to stay. It also has to be compared to the current rent, the down payment, terms of the property finance, and interest rates.
Purchasing a property now whether to live in the property or to just rent it out, makes absolute financial sense.
ROI for residential properties in Dubai stands at 6-8 percent.
The lowest finance rates when compared to previous records make it cheaper to buy at the moment.
The new rules for visas are expected to increase the demand for property in Dubai. The UAE government approved a number of procedures that aim at stimulating the economy and encouraging long-term investment.
With Expo 2020, experts predict that banking on additional demand from visitors will increase. It will also bring about business confidence which could further bring property price recovery.
In conclusion, with many expats staying for a longer time and real estate prices coming down, experts say that buying a property in Dubai can help in saving money. We have collected some reasons why- Buyer’s Market, Buy V/S Rent, calculate the numbers, higher ROI, Finance rate as less as 3.99%, new rules for Visa, Expo 2020.