Emirates Estate platform are super excited to work with Danni in The Desert to let you know about exciting villa projects off the beautiful sparkling coast of Dubai. Have you ever dreamt to buy a house in Dubai? What if you could have dinner and watch the sunset through your panoramic windows with a view of the Persian Gulf every evening? We have the perfect villa for you! So let’s talk about buying property in Dubai and what the market is like currently.
Real estate in the UAE ranges from apartments, villas and townhouses for sale to suit everyone’s needs and requirements. The properties for sale in Dubai range from small studios to enormous luxury villas. Villas are typically more expensive than apartments yet can be a great investment along with achieving the dream of owning your own home.
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Advantages of buying an off-plan villa in UAE
There are two types of villas in the UAE in terms of construction. There are ready-made or completed villas and off-plan villas. Deciding which type of villa you prefer, depends on whether you are buying to live in right away or as an investment property. It also depends on the buyer’s budget and payment method.
Usually, off-plan villas are more desirable for their lower prices. They also offer extended payment plans, no down payment along with payments that are spaced out for easier payment without needing finance. The UAE is an excellent place for investors looking to buy off-plan villas and apartments. As the real estate market in the UAE is very easy for international buyers to own a home.
One of the advantages of owning property in unfinished projects is that it is available at significantly lower prices, offering reasonable payment plans and making it easier to invest. The investor receives a new property with complete and integrated infrastructure at an affordable price compared to finished projects.
New buyers and investors can benefit from the tremendous financial flexibility that off-plan real estate in the emirate offers. From time to time, announcing new projects, developers begin to compete for financial plans and prices that attract a new segment of buyers and investors. There are many different options in Dubai for investors and those looking for a house for sale. Properties come with various offers, such as exemption from fees and the option to pay upon delivery which has attracted many buyers.
From our experience, we have identified 5 of the most important reasons for investing in off-plan villas and projects:
Lower rates and flexible payment plans
One of the key benefits of real estate investments with off-plan projects is that they sold at prices much lower than the price of finished real estate. In addition to the multitude of projects to choose from, this high competition among real estate developers has led many of them to offer financial services, promotions and flexible payment schemes. Including payment plans such as 50% prepayment and 50% upon delivery or 1% monthly before delivery until the payment reaches 40% of the property’s value.
Making big profits with capital gains
The UAE is known to be one of the fastest-growing economies globally so the financial return is good. There is potential for the property to rise in value upon completion and delivery, allowing for significant and profitable capital gains. There are some essential factors that help drive up the real estate value; such as property location and its proximity to Dubai. The ease of exit adjacent to the main roads of Dubai along with its proximity to entertainment venues, amenities and shopping centers.
High rental yield profitability
Rental yields from these investments are high compared to many other global cities. The influx of foreign residents into the country creates high demand for housing options and falling property prices have allowed for greater rental yields. Thus with good property research and selection, an excellent rental income from your real estate investment is highly likely. This is also why many investors choose to continue re-investing into Dubai.
Strict laws to protect the rights of buyers and real estate investors
The real estate regulator and land department of the UAE have taken many measures to provide property buyers and investors with additional protection. These include protections against delays, cancellation or fraud by developers. This has hugely helped increase buyer’s confidence, encouraging them to buy and invest in the real estate market. As the Emirates offer a safe environment for investment and a stable real estate market.
Many options for real estate projects are still being worked out and implemented
What distinguishes the Emirate of Dubai is the consistent implementation of new residential and commercial projects. We find that the real estate market is always active and positive. This allows investors and property buyers to invest all year round.
Why have the prices for residential villas in Dubai increased recently?
Like any goods or products, real estate is influenced by the same factors that relate to the “supply and demand” equation, the basic rule by which the price moves up or down in parallel with the movement of supply and demand compared to available stock.
Main reasons for property value growth in Dubai:
The market is recovering in all directions
The demand for real estate in Dubai is growing in all segments. The total number of sales in the secondary market for the first quarter of 2021 increased by 72% compared to the same period last year. The number of transactions with ready-made apartments increased by 40%. Sales of villas and townhouses also jumped by a huge 231%.
Demand growth was seen in all popular areas of Dubai: Dubai Hills Estate, Arabian Ranches, The Springs and Nad Al Sheba attracted about 30% of transactions with detached houses and townhouses. In Nad Al Sheba, so many ready-made houses were sold in the first quarter that sales were the highest ever.
In Town Square, the number of transactions increased by 800% over the first quarter of 2020. Green Community recorded a six-fold increase in transactions and Palm Jumeirah sales increased more than 3 and a half fold.
Housing prices are growing
The pandemic and the fall in oil prices have had a negative impact on the global economy. However the world has begun to adapt to a new life and the UAE has launched economic support measures for people and businesses. They include visa programs for pensioners and 10-year “golden visas” for entrepreneurs. In addition, the authorities have adopted the Dubai Master Plan for 2040. Their plan is for the city of Dubai to become the best place in the world to live.
Rents in Dubai may be “frozen”
The Dubai Land Department is going to freeze the rent for three years from the date the tenant signs the lease agreement. The authorities want to streamline the housing rental market to provide stable and predictable conditions for players.
Investment activity will grow
The flow of investors from abroad to Dubai does not stop, and with the opening of borders and the return to normality post-pandemic. The housing sector is coming out of stagnation and delayed demand will be implemented in the country.
Despite a return to rising property values in Dubai and high demand in the first quarter of 2021, it is too early to predict the long-term prospects of rising prices in Dubai. We advise you to be careful in selecting your investment destination and consult with market professionals.
Emirates Estate experts will tell you about all the nuances of investing in real estate in Dubai on an individual online or offline consultation. Simply select a villa or any other property suitable for you on favourable terms, conclude a safe and profitable deal and collect all the necessary documentation. Make your dream come true right now with Emirates Estate!