Thanks to the positive decisions made by the government of Dubai, today the emirate is a safe haven with an attractive tax-free environment, ample opportunities for business and leisure.
Investment property in Dubai Hills, Palm Jumeirah and other areas of the city are becoming more and more popular among the investors.
Changing Market
The statistics summarized for the first quarter of 2023 show that buyers continue to be interested in expensive property in Dubai, and the demand for it does not even think of falling. In addition, there is another trend – the interest of foreign investors in transactions using cash.
Developers are trying to catch up with the growing demand, literally weekly announcing new projects that they plan to put into operation in the period from 2024 to 2026.
And this is logical, experts say: developers do not think about how long the demand will last, but simply sell new properties that quickly disperse among buyers.
Today, the average cost of one square meter of luxury real estate (real estate worth over $10 million) is just over AED 78,000. And this is 16% more than the same indicator last year.
Recall that by the beginning of April 2022, the average price per square meter of luxury properties was AED 67,500.
It is noteworthy that, compared with the previous year, the interest of investors regarding the location of property has also changed.
If last year Emirates Hills and Palm Jumeirah were the most priority communities, today the portfolio of luxury real estate has been replenished with new areas.
Changing Mortgage Conditions For Real Estate In Dubai
The increase in mortgage rates, which, according to many experts, should have reduced the volume of the loaned real estate market. However, Dubai banks, on the contrary, do not want to reduce the interest of potential buyers.
Recall that a year ago the average mortgage rate was 2.99%, but now it reaches 5.75%. Banks are trying to attract customers, and in honour of Ramadan, they announced the possibility of issuing mortgages at 5% with a fixed rate for five years.
Today, however, experts are confident that such a small increase will not help reduce demand. And this is the merit of the positive image of Dubai as a reliable city to protect your capital and investments.
Mortgage In Dubai Now
More recently, transactions with mortgage lending occupied a small part of the real estate market. The reason for this is rising rates, which made many purchases more expensive. However, this does not mean at all that mortgage lending should be abandoned today.
Experts recommend paying attention to 3-year fixed rates, which are stable and make it possible to predict real estate spending. In addition, such a choice will make it possible to extract the maximum benefit from a possible rate cut, which many experts are talking about.
For those who already have a mortgage loan, experts recommend considering refinancing the loan. In case of real falls in mortgage rates, such a solution will help reduce the on-going costs of monthly payments.
Specialists involved in the study of statistics in the field of mortgage lending are sure that we should expect lower rates in about a year or a year and a half. But today, the most correct decision will be the choice in favour of short-term fixed rates.
Demand For Luxury Property in Dubai
For owners of luxury houses as well as investors who are simply considering to invest in this market sector, the present real estate market circumstances have improved.
Luxury real estate hotspots including the Palm Jumeirah, Dubai Marina, and JBR are already displaying price gains and revenue for their owners. Rich people have historically chosen the most desirable locations to buy real estate.
In Dubai Creek, Business Bay, Downtown, and Jumeirah Village Circle, they prefer to purchase condos, apartments, and penthouses. Dubai Hills, Damac Hills, and Arabian Ranches continue to be the most well-liked communities in the villa market.
The current condition of affairs suggests that the housing industry is starting to play a significant part in the growth of the city’s economy. The owners themselves, who are in a perfect position, can observe this.
Even real estate investments made a year ago are already producing steady income. Analysts also point out that the emirate intends to significantly grow its population by 2040, reaching 5.8 million.
This means that developers will be compelled to offer new projects at more alluring terms in order to satisfy the already increasing demand for housing. And 2023 will be the ideal year to purchase investment real estate.
Real Estate Agency in Dubai
Dubai-Property.Investments offers its clients a wide choice of the real estate in different areas of the city. The specialist will consult you about all things concerning the deal sealing process as well as the mortgage options and any other questions you may have.
