To buy or not to buy? Purchasing a home is a big move. If you’ve been considering whether or not to buy property in Dubai, then listen up: 2016 is shaping up to be a great year to grab a home. Here are 5 reasons why we believe so:
According to recent real estate data, property sale values dropped between 5-10 percent in the first half of 2015 compared to the same period in 2014. However in 2016, apartment and villa prices in Dubai are expected to rise and stabilise later in the year, as Dubai gears up for Expo 2020. Experts have welcomed the drop in prices as an organic and positive market adjustment after strong growth numbers seen in 2014. If you already own a house, increasing property values mean that you might just be able to walk away with a profit, which you can use to buy property in Dubai. Here’s our checklist of things to keep mind while buying property in the city.
The steady nature of the price correction that we saw this year is a sign that Dubai’s real estate sector is maturing. This is making way for investors with a longer term vision and a market that is stronger and in a better position today to absorb external economic shocks. Experts believe that the healthy price softening is what Dubai really needs to instill confidence in investors that the property market has gained more depth.
Presently, Dubai’s economy is more diversified and less reliant on oil. In fact, as per latest reports, non-oil companies are contributing to a large share of the GDP and employment ratio.
The government’s plan to upgrade Dubai in time for the mega Expo 2020 through spending on infrastructure and encouraging foreign investments in different sectors is anticipated to provide solid support for the real estate market over the next five years.
Downtown Dubai and the DIFC are considered as key unified central business districts and foreign companies are happy to pay a premium to open offices in these locations. This has resulted in low vacancy rates in Dubai’s office sector. During the mega Expo event, Dubai aims to draw over 25 million visitors, invest 25 billion dirhams in total investment in infrastructure-related projects and create over 270,000 new jobs.
Additionally, close to 12,000 apartments and 2,000 villas are expected to be completed this year, so if you are looking to buy property in Dubai, you will have many property types and neighbourhoods to choose from. Developers are also focusing on middle-range and starter homes, so if you feel pretty good about your work and income situation, 2016 might be a great time to buy a home.