Why is it a Good Time to Invest in Property Now in UAE?

 

As the UAE is showing strong signs of recovery from the pandemic slump in realtor niche and the lending rates continue to remain at an all-time low, it could indeed be a great time to invest in property in UAE.

Investors with liquidity can explore the realtor opportunities by considering long term objectives.  For anyone who plans to stay in Dubai for a longer period of around 7 years or more  it will  definitely be cheaper to buy than rent and buyers can get onto the property ladder now while prices are still good value.

Another factor that has brightened the property market is Dubai’s new retirement visa that is all set to boost local economy. The property listings in online portals registered only a drop of just 4 per cent in the first half of this year, despite the postponement of Expo 2020 Dubai to next year. Industry experts opine that for those thinking of purchasing property in Dubai, there can’t be a better time as it is a buyer’s market with prices lower than what it was a few months back.

The government has been doing many things to attract business in various sectors to keep the employment rates buoyant, which in turn will support prices. It may not be the right time for speculative deals to make some quick profit. But for serious private investors with a long term plan and a secure job, it is indeed a golden opportunity to invest in property in the UAE.

For those staying in rental properties, the time is ripe to move into their own homes thanks to the low realtor prices. Even if the prices fall further, they could still be saving on the rent plus the advantage of having their own home in the UAE. The low price trend may change as any governmental policies like limiting new property supply until demand recovers can have an impact on the prices.

Another compelling reason to consider investing in real estate during a crisis is for generating income especially when the stock market is doing poorly. Most investors will find real estate a safe option to park their money under these circumstances. The UAE enjoys a reputation of being one of the world’s most lucrative locations for investment, offering over seven per cent gross rental returns on an average.

Investors are always optimistic about investing their money in a highly dynamic realtor market in the country as it cruises along on a stable note. Even during the financial downturn of 2008, the realtor market picked up its tempo powered by the massive fiscal stimulus of the global banker’s interest rates reduced to near zero.

Many property consultants rank Dubai above any other city in the UAE when it comes to the f government support to the real estate sector.  In addition, lower entry price points, attractive interest rates and the favorable loan-to-value ratio are some of the other incentives that will easily attract buyers in today’s slow market conditions. In addition distress sales where some residential properties are listed at 15-25 percent discount on the current market price is another tempting factor for the buyers to invest in property.

Dubai is all set to emerge from the crisis stronger than ever before, retaining its fabled title as one of the most lucrative investment destinations in the real estate domain. Most industry experts recommend a mix of cash and mortgage to fund the property purchase with 50 percent up front and the remaining as fixed interest or floating rate mortgage plan. With UAE prices and mortgage rates at their lowest in a decade, investing in property will be a lucrative option to get the most desirable property like villas and townhouses against apartments.

As the prices have dropped well, there is no point for investors to wait further to see whether the prices may tumble further in the event of a second pandemic wave across the world. The news of a possible vaccine likely to hit market early next year and the relaxation of travel restrictions for overseas buyers will see a boom in property investments from overseas buyers who earn in other currencies. Buyers will surely be taking advantage of today's favorable purchase conditions. The low interest rates coupled with the security of owning property will surely drive a lot of deals in the coming days in the UAE. So, if you have spotted your dream property and can afford the mortgage, the best time to buy is today!