Future of Dubai real estate market looks rock solid with demand expected to surpass supply in 2016, if the current trend continues. Investors who are waiting for a time for the prices to decline need to act faster. Starting from the year 2016, prices will spike further. Also, tenants who are complaining more about the increase in the rental prices, it seems to be the perfect time to take advantage on the attractive property valuations and become the proud owner of a home in Dubai.
Investing in Real estate markets across the world is a long term perspective. Over the years, it has been confirmed that investing in real estate is the safest of all other options. Investing in Dubai currently seems to be a hot proposition however we need to follow a few basic guidelines before investing in property.
Understanding Dubai realty market before investing
It is always advisable to understand the markets before you start investing. All markets go through ups and downs, since investing in residential projects is linked to multiple owners of apartments, at times, delayed payments from the investors may result in a delayed handover by the developers, and hence investors should keep a reasonable amount of buffer time for the same.
Why 2016 is the best time for property investment?
The year 2015 was good for property buyers in secondary as well as off-plan markets. Property developers offered properties at low prices, a variety of easy payment plans were available and incentives were given to attract purchasers. The year 2016 will see the upward transition of the property prices which will keep on increasing further.
Tenants prefer buying a property instead of paying rent
In H2 / 2015, it was revealed more tenants are considering buying a residential property. Tenants hope to become a home owner with the incentive of monthly mortgage payments which is below their current rent. At current levels, property prices seem to be very attractive for buyers.
Demand expected to surpass supply
As per a forecast by some real estate experts, 20,000 to 25,000 units were expected to come to the market in 2015, but 9,000 units delivered till Q3 / 2015. If the trend continue to be like this, demand will surpass supply and prices will move up. Ahead of the EXPO 2020, the prices can also touch greater heights.
Incentives & discounts still available
If you look at the overall scenario, you should act aggressively on your plan to invest on real estate market. Whether you are an individual property buyer or an investor, you should act now and seal in a good bargain and take advantages of discounts and various incentives. As the property sector’s performance in 2016 is attached to liquidity, oil prices and exchange rates, it is advisable to take the act now.
Tips for buying properties in Dubai
If you are looking to invest in a property for capital appreciation, you should consider investing in off-plan projects of reputed builders. However, it is imperative to select the right projects. A trusted real estate brokerage company can assist you with the same. In the ready property markets, there will be a few good deals available for cash buyers, however, it depends on your broker to identify and negotiate a good bargain.