Is Dubai a good market for investors? We think that 2016 is a perfect time for Dubai property investment. Here’s why.
Indians yet again topped the list of expat Dubai property buyers with investments of AED 20 billion in 2015, according to Dubai Land Department (DLD) estimates. Even better, the total property investment by Indians rose by over 10 percent from AED 18.123 billion in 2014. UK nationals came in second with realty investments of AED 10 billion, compared to AED 9.3 billion in 2014. Pakistani citizens ranked third with property investments of AED 8 billion, from the AED 7.5 billion they invested in 2014. Furthermore, the total real estate investment from non-Arab expats in 2015 crossed AED 74 billion.
All in all, over 150 nationalities invested in Dubai property, with transaction values jumping 22.5 percent to AED 267 billion in 2015 compared to AED 218 billion in 2014. These numbers are proof of the diversity of investors in Dubai’s real estate market and the properties it has to offer, the returns on investment, the stable nature of the property investment market and the continuing growth of the UAE economy. The fact that the emirate has maintained this momentum for years is a sign that the Dubai property market will continue to attract investors from around the world and maintain sustainable growth for years to come.
The price softening seen in 2015 was a welcome change given the steep price rise back in 2013 and 2014, it paved the way for the residential sales market to represent amazing value in comparison with other global property markets such as London and Hong Kong. In fact, Dubai’s rental yields average around 7 percent – an extremely attractive figure when compared with cities such as Hong Kong which offer yields at around 2 to 3 percent. The Dubai property market also continues to mature and stabilise with the government implementing regulations such as increased property registration fees and mortgage caps to combat speculation.
So, is 2016 a good time to invest in Dubai property? Absolutely!
We are yet to see the total number of units which will be ready in 2016, however, the future of the Dubai property market looks rock solid with demand expected to surpass supply this year. If you are an investor waiting for prices to fall, wait no further. Sales prices are very competitive now, so this is a perfect time to take advantage and become a proud homeowner in Dubai.