Why you should not delay buying a residential unit in Dubai?
Many of the expatriates who have been living in the UAE for the last so many years are likely to have invested in residential properties back in their home countries, while they continue to live in rented apartments or villas in the emirates. While it is always a good decision to invest in realty projects back home, it also makes good economic sense to own at least one residential unit in the country where one is currently employed and is likely to continue residing for at least a few more years.
As such, in case you are an expatriate residing in Dubai with plans to continue here for some more years and still don’t own a house in the UAE, it is high time you reshuffled your priorities, turned your attention to your current location and decided to buy a residential unit in Dubai without further delay because of the following reasons:
1. Though realty prices have been going up since mid-2012, even now there are decent deals available in the market. Therefore it’s as good as any in terms of time for you to buy right now as there are still ample opportunities for good bargains. So don’t believe if someone says it is too late to buy a house now because with Dubai winning the 2020 World Expo bid, realty prices will keep surging over the next few years.
2. Of course, if you had purchased a house between 2010 and 2012 or even last year, you could have got it at a much lower and attractive price. Though housing prices are now on the upswing, there are still many residential projects that are available at very tempting valuations. So it is definitely advisable to buy a house now before the property prices move up any further and gradually become unaffordable.
3. In your individual case, if affordability is an issue and you don’t have ready savings or liquid funds to buy a house outright, then take a mortgage loan and buy the property of your choice. Since most of the banks in the UAE are flush with funds and they are also scouting for more business and more customers, even now home loans are easily available at relatively appealing mortgage rates and terms.
4. Prices of residential units may jump as much as 40% this year, according to Dubai’s Land Department. Furthermore, the UAE economy has recorded a remarkable and rapid improvement since 2012 and is expected to expand by 4.7% this year after recording a growth of 4.9% in 2013, which has been the fastest growth since 2007. So buying a house is the best way to capitalize on the resurgent interest in the Dubai real estate market.
5. Of late, all the sectors of the UAE economy are on a recovery mode. As a result, not only are the real estate prices on the upswing, but rents of apartments and villas are also on their upward trajectory. Because of the soaring rent, it makes more economic sense to buy a house instead of taking one on rent. By doing so, you can use the amount you now pay as rent for repaying the mortgage loan availed to buy your dream house.
6. Even now, real estate in Dubai is relatively cheaper when compared to equivalent global hubs. Furthermore, Dubai enjoys advantages such as (i) proximity to the African markets, (ii) it is a gateway and an oasis of peace in an inherently unstable region, (iii) has a solid and diversified economy that keeps growing at a decent pace, which will invariably keep on attracting more and more investors and expatriates in the coming years.
In view of the above factors, property prices and rents in Dubai will keep rising consistently over the next few years. Therefore, as an expatriate residing in Dubai, you should not delay buying a residential unit anymore because if you wait any longer, it will only become more and more expensive and unaffordable.