Best Time to Buy Property in Dubai: Purchasing real estate in Dubai has a number of advantages. It is a growing market, and property prices are still low. It is also possible to obtain Long-Term Residency Visas if you are an investor. Below are the top three reasons for buying property in Dubai now. Read on for more information! Also read about living in Dubai, Long-term residency visas for investors, and the cost of property in Dubai.
Dubai Property Market is Growing
Despite the slow start of the year, the Dubai Property Market is showing signs of growth in Q1 of 2022. Sales transactions in the first quarter reached their highest level since 2010. Despite the slow start, the market has shown signs of recovery, and the Land Department reported that the sales volumes for the first quarter were the highest in more than three years. While the overall property market in Dubai continues to see steady growth, prices are still considerably lower than the peak prices in 2014.
The government of the UAE recently launched a new e-Dirham system, allowing for the electronic
registration of property transactions. This will make the process of purchasing a property easier and
should spur more activity in the market. In addition, the country has announced that it will spend
41% of its total budget on infrastructure, 31% on social development, and 22% on security. All these factors are anticipated to increase market growth in the upcoming years.
The Best Time To Buy Property In Dubai Property Prices Are Low
One of the reasons why property prices in Dubai are low is the relatively low cost of living. With
the cost of living in Dubai at $5,918 per square meter, it is not surprising that landlords are still
drawn to the emirate. Landlords can expect rental yields ranging from 6% to 9.5%. According to
ValuStrat, the property market in Dubai has seen a modest recovery since last year’s crash.
The trend in the United Arab Emirates had been sluggish since the 2014-15 oil price crash. The
number of new homes is significantly outstripped by demand. In addition, the country’s
demographic is made up largely of foreigners, so the prices of real estate are at the lowest point in
the cycle. Despite this, analysts expect a rebound in 2021-2022, citing improved consumer
sentiment, rising oil prices, and the World Expo.
The Dubai real estate market is displaying some promising traits. Interest rates have
decreased and pent-up demand is fueling the rebound. The volume of the residential transactions
market in Dubai has increased, and the transactional volume is high compared to previous years.
Moreover, the market has recorded the highest number of transactions for the first three months of
2020 in contrast to the first quarter of the previous year. This is mainly due to the fact that higher
property prices and favorable interest rates are attractive to investors and end-users.
Living in Dubai is Affordable
Expatriates in Dubai can expect to earn decent salaries and pay minimal tax. Rent will eat up
roughly 30 percent of your salary, so you’ll need to invest in a car or find a job outside the city.
Alcohol and going out will be more expensive in Dubai than in the UK, but overall the cost of living
here is considerably lower than in the United Kingdom. Here are some suggestions for locating
affordable lodging in the UAE.
One of the reasons why ex-pats love the UAE is its tax-free system. The UAE pays no income tax
and only a minimal amount of VAT on goods and services. Still, living in the UAE can put a strain on
an expat’s budget. According to the Mercer cost of living survey, the UAE has become more
affordable for ex-pats, but the recent pandemic has shaken up the rankings.
Long-Term Residency Visas for Investors
If you’re interested in investing in Dubai property, you can get one of several types of residence
visas. You can apply for a residence visa for a certain period of time, usually a year, or for an
unlimited amount of time. The best visa to apply for is the five-year residency visa, which is issued to investors who have purchased residential properties worth at least AED 5 million. This visa
comes with similar conditions as the 3-year residency visa, but with a longer validity period. In
addition, you can’t invest in any commercial property, and the property must be owned on loan for
three years. If you have children or a spouse, your long-term visa may also be extended to them.
Your spouse and children can also apply for this visa, along with your executive director or advisor.
The golden visa, also known as the long-term investor visa, is available for people who have
invested at least AED 5 million in the property. Three years must pass while the property is held.
You can also sponsor your spouse and children if you have an established project. The residency
visa for investors can be renewed once every five years, or you can opt for the long-term residency
visa.
Tourism is at Peak
November to April: The peak tourism season in Dubai runs from November to April. This month is the best time to buy property in Dubai. Daytime temperatures in Dubai are warm but not as sweltering as they are in Europe and North America. During this time, tourists can take advantage of heated pools in the hotels, and there are many events to attend. The desert safari and opera shows are still going strong, and you can even try flyboarding if you wish!
November to February: The tourist season begins in November, which means there are more people looking to buy property in Dubai. The temperature is pleasant throughout the year, although the market can dip during the peak of summer and Ramadan. Home sales in cooler months tend to be higher during these periods, as ex-pats and tourists alike head south for holidays. But despite the high tourist season, prices are still very reasonable, and foreign investors can invest in Dubai’s property.
May and June: The shoulder season is the best time to buy property in Dubai. It is still hot during
the day, but the weather is pleasant and temperate in the evenings. September and October also
see the return of outdoor festivals and events, making this a good time to buy property. If you are
looking for a bargain on a family villa, the best time to buy is now!
Dubai Offers High Rental Yields
When it comes to income property investment, the rental yield is the most important consideration.
Rental yields are calculated as the total rent divided by the total purchase price. It’s particularly
important for investors who are looking for mid-to-long-term investment opportunities.
Apartments and villas will earn a higher rental yield than studios, so renting one of these will net
you more profit. However, the UAE has a few other great rental-yielding cities, including Jumeirah
Beach Residence and Al Qusaf.
Apartments in the International City, Discovery Gardens, and Al Barsha offer the highest rental
yields in the city. Other areas with higher rental yields include the Dubai Investment Park, Palm
Jumeirah, and Al Raha Beach. The cheapest apartments are in Al Ghadeer and JVC, while the
highest rental yields are found in the city’s mature communities. In addition, rentals in Al Reef can
bring a 6.3% to 8.8% annual rental yield.
Finance rates as low as 3.99%
The UAE property market has seen rises and falls in recent years, but it is considered to be generally stable. Prices fell 17% between 2014 and 2016 and are expected to drop further in 2017. Experts are divided over whether the market has hit bottom and will start rising again. However, many expect the trend to reverse itself and the market to fall further before it starts to recover. The currency in Dubai, the UAE dirham, is tied to the strong U.S. dollar.
If you are looking to purchase a property in Dubai, This is the best time to buy property in Dubai you may be able to secure financing at a relatively low rate. A bank in Dubai will lend up to 50% of the value of the property if you are a non-resident of Dubai. In order to obtain finance, you should know your monthly expenses. In addition to this, you must be aware of your credit rating and keep an eye on it.
Best time to buy property in Dubai New visa rules
Getting a UAE residency visa is no longer an impossible dream. New visa rules for buying property
in Dubai have been introduced in order to give foreign nationals greater flexibility when purchasing
property in the country. For a UAE residency visa, an individual must invest at least AED 750,000 in
a property in the country. If the investment is made by an individual, the investor is eligible to apply
for an Emirates ID and driving license. Family sponsorship is also available.
Upon obtaining the UAE residence visa, foreign nationals must have a passport and a certified copy
of the title deed certificate of property worth at least Dh750,000 and must pay 50% of the
property’s value to the bank before applying for the residence visa. A stamp loan statement must
be submitted, and the applicant must provide a non-objection letter in Arabic from the bank that
mortgaged the property.