Dubai Real Estate Dubai

Dubai's Real Estate Market

Real Estate in Dubai is currently on the upswing, with new laws being implemented to make the sale of property to foreigners a far simpler exercise. With its exquisite beaches and warm climate, Dubai is a popular choice with GCC locals and foreigners alike, both of whom are currently zapping up off plan property before it has even had a chance to hit the market.

Individuals who took a chance and invested in property in the recent past will be the first to tell you that the value of their villas and apartments has increased significantly over the last year or two. In addition, those who carefully considered details like location and size and spent a bit of money on renovations are likely to have noticed their property doubling or possibly trebling in value. Whether or not this increase in property prices will continue into the future remains to be seen, but with the development of ventures like Palm Island, a significant drop in property prices seems unlikely to say the least.

Most advisors will agree that buying property in the country is a far more viable alternative than renting. While the cost of buying may have increased in recent years, when compared with international standards, property prices in Dubai are generally still inexpensive. By comparison, rental costs in the country have soared in recent years, with the demand for properties to lease far outweighing the supply of those available. For this reason, buying to let remains a feasible option, especially given the increase in numbers of foreigners currently taking up employment in Dubai on a two or three year basis.

Many of those moving to Dubai for the first time are reluctant to buy due to the fact that they are still testing the waters so to speak. In addition, the red tape surrounding the purchase of property by non GCC citizens was enough to put many off buying before they had even considered investigating the market. Thus the demand for property to rent opened the way for local landlords to hype rental prices substantially. It is estimated that in the last year or two alone, rental rates have increased by between $1000 and $5000 per annum. In the event that you are able to purchase a decent apartment or villa and rent it out at a reasonable rate, you are likely to easily be able to cover your mortgage repayments and possibly still make yourself a little extra.