Is it the Right Time to Invest in the Dubai Property Market?

The Dubai property market has always been known to produce high ROI for investors. Famous for its high rises, world-class attractions and landmarks, the emirate houses some of the best villa communities and residential developments, which make it a lucrative option for investors.

Properties in these developments and communities are developed keeping in view to provide residents with a quality lifestyle. This results in a higher demand for residential properties, which ultimately results in a high ROI. Some people also buy properties to put them on rent, as a lot of people, particularly expatriates, look for apartments for rent in Dubai since they are here for a limited time; buying a property doesn’t seem feasible for them.

Having said that, ever since the onset of COVID-19, things drastically changed in the Dubai real estate sector. Investors were reluctant to put their money in the market as the prices dropped significantly. However, the market, currently, is on the road to recovery, with both the prices and number of transactions increasing in the last few months. So, does that mean is it the right time to invest in the Dubai property market? Let’s find out everything here!

Comparatively Lower Property Prices

As stated above, the property prices in Dubai have increased as compared to the last year, when COVID-19 was at its peak in the emirate. However, they are still lower if compared to pre-pandemic levels. However, the silver lining here is that recovery is on the cards now with the COVID situation improving and investors coming back.

So, if you buy a property as an investment now, you can expect it to yield a high ROI in the coming times as the property prices are increasing. This presents a lucrative opportunity for first-time investors to enter the market or existing investors to diversify their portfolios.

Changing Policies

The authorities in Dubai have introduced new expat-friendly policies in order to attract more investors and entrepreneurs to the emirate. The abolishment of the requirement to have a local sponsor for starting a business as an expat is one such example of changing policies. Furthermore, the introduction of the renewable Golden visa (valid for 10 years) is another major reform.

These amended policies, particularly the latter one, act as an added incentive for investors as they can stay in the emirate for a longer period, provided their visa application is approved.

Changing Trends

The Dubai property market witnessed a change in trends after the onset of the COVID-19. Earlier, apartments and studios were considered the most-selling units. However, things have changed now. While queries are still made for apartments for sale in Dubai,and they rake in a lot of money, the number of villas sold in the last year has significantly increased as well.

The reason is that the pandemic made people realise the importance of living in bigger residences. As they were confined to the four walls of their homes due to the lockdown, they felt the need to move into bigger residences surrounded by open spaces. And villas perfectly fit this description. Many real estate portals, including Zoom Property, showed a higher number of queries received for villas.

What this has to do with investment in Dubai is that you can leverage the low property prices in Dubai and buy a villa in Dubai now as the prices are lower. Then, you can rent out the villa to earn a continuous stream of income. Or when the time is right, you can sell it at high rates.

Apart from villas, there has been a noted surge in the transactions made for off-plan properties. Again, these properties are comparatively inexpensive as they are not fully developed. Therefore, they allow new investors to enter the market without spending a lot of money. But, the catch here is that these properties will take time before the buyer/investor gets the possession. And this waiting period could last for a good 3, 4 years, depending on the project’s construction status and reputation of the developer.

However, in most cases, the wait is worth it, as when you get possession of the property, you will be able to sell it at much higher rates. In some cases, you may start getting offers for your off-plan property even before it’s completed.

Expo-2020 Round the Corner

One of the most anticipated global events, Expo-2020 is just round the corner. Originally scheduled in 2020, this exhibition was postponed because of the pandemic. It is expected to welcome visitors from all over the world. And those visitors will certainly need a place to stay. So, buying a residential property around the expo site and renting it out has a lot of potential to earn rental income.

In all, based on all the factors discussed above, it certainly is the right time to invest in the Dubai property market.