Looking to invest in Dubai apartments?
Here’s why we think Dubai apartments are a sound property investment decision:
One, Dubai real estate has shown resilience despite the market slowdown. Secondly, the market is maturing and there is sustained appeal amongst international investors. Furthermore, the government is spending millions on infrastructure projects that are due for completion by Expo 2020. Recent data from Dubai Land Department reveal that GCC investors spent AED 44 billion in the last year, making them the largest Dubai property investor segment. The majority of this spending comprised of Emiratis who spent AED 26 billion followed by Saudi nationals who spent AED 10 billion.
With Expo 2020 around the corner, Dubai is expected to welcome 25 million additional visitors for the six-month mega event. As the preparation for Expo 2020 picks up, investors worldwide anticipate a significant rise in the demand for residential and commercial Dubai property investment. Also, Dubai is expected to create over 277,000 new jobs in the run up to the Expo.
2016 will be a good year for Dubai property investment as the residential sales market represents good value when compared with other global property markets. Dubai’s rental yields are averaging just over 7 percent – very attractive when compared with cities such as Hong Kong at around 2 to 3 percent, and London at 3 to 4 percent. Additionally, Dubai offers a wide range of property investment options – from the very affordable to the most expensive addresses in the world.
We recommend that investors buy off plan – which offers a lower cash outlay over the building period. This way, buyers can take advantage as the market recovers without having to pay the entire amount upfront.
Also, recent data predicts that market fundamentals for Dubai properties are likely to remain positive this year, including infrastructure investment and connectivity. 2015 saw a significant number of project launches contributing to a robust pipeline for Dubai. Hence, 2016 seems to be cut out for project delivery.
Lower prices, higher yields – take advantage now!