Dubai houses look to remain affordable primarily due to oversupply. Currently, there’s an estimated 64,000 units due to be completed within 2022, so prospective homeowners are not lacking in options.
However, housing prices are also expected to increase in price as the economy bounces back from its slump. But despite that, it is foreseen that these prices may still remain affordable when compared to other regions of the world.
Dubai’s Housing Prices
According to Reuters, Dubai’s house prices are projected to rise by 2.5% this 2022, compared to an initial survey of 2.8%. This is surprisingly low even with all the development due to be completed this year alone.
This outlook is different when compared to other markets in Canada, New Zealand, and Australia. These territories have seen price increases in the double-digits for the year.
Foreign nationals and expats are also allowed to buy property in Dubai. After all, the region receives millions of travellers every year, and some of them might choose to stay permanently.
Benefits of Buying Property in Dubai
Dubai is situated at a very strategic location, owing to its plentiful opportunities and strong financial performance. The region is also expected to have a lot of major infrastructure development in the coming years.
With houses and real estate prices remaining on the affordable side, now may be the best time to get a piece of permanent land in Dubai.
Benefits for Expats
For expats, owning property in Dubai makes them eligible for a Resident Visa, which can last up to 10 years.
Resident Visas carry fees depending on the duration it is issued. Typically, a one year Residence Visa fee is AED 100 so expect to pay around AED 1000 for the Visa.
You will still pay processing fees of AED 40 for online applications and AED 70 for in person applications. These are all subject to change depending on the requirements asked of you during processing.
Benefits for Landlords
As real estate prices are cheap, landlords can potentially make good profit. Rental returns on Dubai properties can be quite high, reaching up to 10%.
And while it is tricky to get started on the inner workings of real estate, Dubai has the services to help with this as well.
Prospective real estate investors can reach out to some of the best property management companies in Dubai for help.
Benefits for Residents
There is a lot to like about living in Dubai as a resident. Both families and single people can take advantage of the many amenities and facilities that Dubai has to offer.
Childcare is quite affordable in Dubai, and families can easily hire competent domestic services to help in the household. For medical needs, different specialists and clinics are also easily available to those who need them.
In terms of recreation, Dubai has a good assortment of bars, restaurants, and other dining establishments. And thanks to its thriving nightlife, Dubai is also a great place to unwind after a long day at work.
People who wish to retain some flexibility in their living arrangement and rent can also find a good number of apartments to live in.
Other Property Expenses in Dubai
While real estate in Dubai isn’t usually taxed, citizens and homeowners may want to keep in mind some of the other fees and expenses they might expect in Dubai.
These state fees are typically paid to the Dubai Land Department (DLD). The DLD fee is typically 4% of the property’s value and it is typically paid in full on the primary market.
After that, there’s also administration fees which will vary depending on the type of property. For simple land plots, the fee is typically around AED 430.
On the other hand, for residential and commercial real estate, it typically costs AED 580. For housing units under construction, it can be as low as AED 40.
Registration fees will also differ based on the property prices. Properties that cost lower than AED 500,000 can expect around AED 2,000 in registration fees. Anything higher can reach around AED 4,000.
Should I buy a House or Should I Rent?
Normally, it is better to buy a house to own, taking advantage of the affordable prices and multiple opportunities. The UAE’s taxes are quite low, so owning a house can be a better investment in the long term.
A house can also accrue additional value as time passes by, eventually becoming an asset that can yield even greater value in the future.
Having an actual house also grants its owner a lot of control over how it is set up. It is certainly the better option for homemakers looking to customise their living space.
Of course, there are reasons why someone would opt to rent an apartment instead. For one, expats who are only in the area to work for a short amount of time may lean more towards a rental property.
Fortunately, Dubai has a good number of serviced apartments that renters can use. This saves them the hassle of setting up the necessary furniture and appliances.
As the economy fully recovers and more developments start, the price of housing in Dubai remains affordable for people looking to put down roots with their own home.
In a city that positions itself as a top destination for business and lifestyle opportunities, having a home you could call your own can really elevate your stay in Dubai.