Due to the global pandemic, caution and worry are on everyone’s minds. People have mixed views regarding the real estate market. This is largely because of misinformation or lack of information that everyone is getting.
Contrary to everything you might have heard, the market is doing substantially well. There are tons of profitable projects as well as advantages for buyers to look forward to.
As for those who are still dubious of the UAE real estate market, here’s a list of reasons why it’s a great time to invest:
Markets are Showing a Rise
Contrary to the perception that everyone might be believing, real estate markets are showing a substantial rise. For those who wish to see proof, let’s take a look at the figures and statistics shown in June 2020. The reports reveal that a total of 2,361 transactions took place in the month of June. These amount to almost AED 4.9 billion. Firms like Appello have reported a 40% increase in the H1 of 2020 with respect to the year on year average.
Benefits for First-Time Buyers
Amazing advantages for first-time buyers are encouraging expats as well as locals to get in the real estate market. This is because of the $70 billion economic stimulus package by the governmental authorities. As a result, banks are willing to offer attractive packages that bring the loan-to-value ratio up by 5%.
Since the mortgage rates are attracting new buyers, the real estate inventory is increasing substantially to make more options available. Adding to the already advantageous scenario, the lower down payment requirements are enough to convince people to try their hand in the real estate market.
For properties that value lower than AED 5 million: expats can increase the LTV ratio from 75-80%
For properties that value higher than AED 5 million: expats can increase the LTV ratio from 65-70%
The values have been 5% greater in each case for local Emiratis and the same is the case here.
Dubai is not slowing down in its endeavor to make more developments and communities available to the public. In addition to the already existing luxurious residential and commercial projects, more communities are expected to be added to the real estate inventory by the end of this year. This means that those who couldn’t get in on the Expo 2020 action before have a chance to invest in the market now. You can look at the various off-plan projects that are offering magnificent properties for affordable prices and comfortable payment plans.
Preference for Bigger Spaces
More than apartments and flats, people are now showing a greater interest in villas and townhouses. This is because the recent lockdown has made people realize the need for bigger spaces. Moreover, it’s been seen that the rental plans for villas are only slightly higher than that of 3-BHK flats for rent in Dubai.
Other than being luxuriously spacious, villas also offer a garden and swimming pool. This makes it worthwhile for all those who have grown tired of waiting for the community pools to open up. Combined with the provision of the enormous space that can be utilized as personal gyms and artistic passions, these amenities prove to be really attractive for buyers. Therefore, the demand for villas is rising.
The Incoming Tourist Population
Like the rest of the world, Dubai is facing the coronavirus pandemic as well. However, it’s faring far better than most of the countries in the world. That’s why experts are of the view that the emirate will continue to attract the 18.5 million people it’s been reported to attract in the days when the lockdown is lifted as well.
This is also due to the incoming Expo 2020 that is anticipated to bring about more people than ever in Dubai. Hotels and residential spaces far and wide are increasing their inventories in order to the increasing number of queries. Instead of buying flats, go for bigger spaces that are going to sell well and translate into better ROI.
All in all, it’s a buyer’s market and if you’re looking to invest in real estate, you should do so now. The payment plans are off the hook and the market will eventually open up to new buyers. You don’t want to be rethinking your decision at a time when all the benefits are gone.