This might indeed be the best time to buy a house in the UAE. With Expo 2020 just around the corner, lower interest rates and declining prices, it might be a good idea to consider this alternative to increasing rental prices.
Dubai has enjoyed a construction boom due to the highly-anticipated Expo 2020 and related hospitality projects. Expo 2020 has positively impacted all the sectors of the economy, including real estate and is also attracting investors for commercial properties. At the same time, prices for real estate are declining by an estimated 7,96 per percent in 2016.
The market seems, then, to cater to the needs of speculative buyers, investors and prospective homeowners who are seeking value-for-money properties in the emirate, with a surge almost inevitable in renters and overseas buyers leading up to the Expo thanks to international coverage and global exposure.
“With housing rents and prices in the UAE continuing to increase many expatriates are considering taking the plunge and buying a home,” tells The National, but some fear the high house prices and the need for a 25 per cent deposit, which stops them. In addition buyers need to consider a variety of taxes a fee including loan and registration taxes and mediation services fees.
There are however several incentives to buying. Interest rates, for example, are currently low and competitive and, in many cases, buyers can count on flexible payment plans. This is especially true when considering houses that are still in constructions. The real estate industry in the UAE has been picking up for some time with various infrastructure projects that are underway to meet the needs of the increasing demand for housing.
In addition, good occasions can be found in a number of peripheral areas like Dubai Silicon Oasis (DSO), Dubai Sports City and Dubailand where properties have average prices between 750,000 and 2 million Dirham, affordable prices that make sense for a first home.
Advice for those who are looking to buy a house in the UAE
Consider alternatives. Don’t rule out any areas by concentrating only in preferred zones. The perfect investment could be found in unexpected location, so do your research and consider all possibilities.
Employ the help of a consultant. Especially a first-time buyers can really benefit from the help of a professional that can guide through all the requirements of a purchase and make buying the perfect property a breeze.
Consider buying a house that is still under construction. This could be the best option to enjoy more flexible payment plans and invest in a property bound to gain value in the future.
Underestimate up front cost. In addition to down payments, buyers need to think of all the other taxes, registration fees and advising services cost that are often associated to a house sale.
Impatience. Never be too hasty in signing a mortgage contract. Shop around for the best rates and conditi0ons by visiting several banks
Too many real estate agents. Do your homework first. Find an agent you trust and rely on his expertise.