There is no doubt that Dubai has become the region's economic and touristic hub, with millions of tourists flocking into the emirate each year. Dubai has something for everyone and never fails to amaze; hence, it is no wonder that many people decide to move here after visiting.
While Dubai real estate sector is a vibrant one, the million-dollar question over the years still stands; whether one should purchase a property or rent in Dubai.
Abundance of offers
There is no doubt that the abundance of offers in the market makes it harder for residents to choose from; however, big developers in Dubai help the residents with all property-related needs. wasl properties is one of Dubai's largest property development and management companies, leading the market with this approach. In addition, many developers are offering incentives to encourage investors, such as discounts, long-term payment plans and rent-to-own opportunities.
Latest trends
Residents have expressed a strong desire to increase their living spaces due to the pandemic and, therefore, moving to bigger houses, mainly villas and townhouses, which is an action that has been fueled by attractive property prices and low mortgage interest rates.
With the government's easing of COVID-19 restrictions and introducing new visa types for many segments in society, it is now easier for people to call Dubai home, at least for the next decade, resulting in a boost in buyer sentiment in the UAE property market. These two considerations lure many first-time buyers into the market. With prices remaining affordable but slowly rising, purchasers are seizing the opportunity to buy a home while they can.
Associated costs
One must be aware of all the costs associated with purchasing property in Dubai. These include government fees that constitute Dubai Land Department fees (4% of the purchase price), title deed issuance, and mortgage registration fees, 0.25% of the total mortgage value plus AED 290 admin fees. In addition, the cost of buying can increase if you go through a broker from a real estate agency; those agency fees are usually 2% of the purchase price.
One always should take note of other costs associated with purchasing a property, such as annual service charges, property insurance in most cases, and the costs of buying. Other factors include personal ones, such as the ability to procure a bank loan, education for children, existing liabilities (cars or personal); and job security, especially post COVID-19.
Renting
Renting will remain an option for those who can't afford first payments, albeit many developers offering attractive payment plans and post-handover instalments. This solely depends on the long-term goals of tenants and their priorities. As the market keeps fluctuating, prices are expected to go back up from next year onwards, especially as more affordable units enter the market. Dubai always has something to show or present to the world, attracting more people and increasing the emirate's population. Moreover, some people who do not consider staying in Dubai for a considerable period prefer to rent so that they don’t commit to purchased units.
Expo 2020 Dubai
With Expo 2020 Dubai inaugurated this month, and with millions of visitors expected to attend during the six-month event, there is no doubt that Dubai will amaze and encourage many to settle, which means developers will need to cater to resident needs with attractive offerings, whether they plan to buy or rent. Of course, there are short-term rentals through apps such as Airbnb; however, developers can start thinking of offering the same for specific projects in their portfolio, especially as Dubai is always buzzing with events.
Dubai's real estate industry is expected to see a surge in investment, which will result in the development of high-end properties. Dubai is already planning its legacy plans to ensure that the property market grows and that market fluctuations do not occur after Expo visitors leave the country.
As such, Dubai's real estate market is experiencing a gradual upswing due to Expo 2020, and there are many investors interested in establishing a base in the UAE given its investor-friendly regulations and infrastructure. To summarise, real estate in Dubai is a great investment opportunity due to three factors: infrastructure, regulatory framework, and current values.
Get in touch
wasl properties has the largest portfolio of properties spread across Dubai with over 50,000 units ranging from apartments of different types to villas. To start your buying journey and discover how easy it could be to rent or own a property in Dubai, download wasl properties leasing app and search for available properties. You can also contact us on 800wasl (9275) to check our available freehold properties for purchase, such as the recently launched Gardenia Townhomes II project, which is part of the wasl gate master development in Jebel Ali, where customers can now register their interest on waslgate.ae to own their dream townhome.
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