There has never been a better time to buy property in Dubai, according to property experts Bayut.com, TimeOutDubai reports.
Areas such as Dubai International City have a high rent yield of over nine percent due to close proximity to Dubai’s best schools and universities in Dubai International Academic City, Fortune Global 500 firms in Dubai Silicon Oasis, numerous entertainment venues as well as lower price points.
Government’s increased spending on infrastructure will also carry a positive multiplier effect across the real estate market. This is especially true for extension of existing communities such as Dubai International City (Phase 3) which will offer higher return of investment in the form of capital gains as the area develops in terms of infrastructure, the perceived price goes up, resulting in higher capital appreciation.
More: Special report: Dubai real estate investment guide and tips
And, with the raft of Government changes coming into place – from ten-year visas, company ownership and new retirement visas – Haider Khan, CEO of property search giant Bayut.com, insists “locking in on a great price now” is the key to building a safety nest.
“It’s a buyers’ market now and if your mortgage works out to be more cost-effective than rent, you could actually end up saving money in these years and have a property to your name or rent it out and have part of the rent cover your mortgage. Not only will you get to enjoy living in your own home while you are in the city, if you do end up moving away, you can also benefit from passive income in the form of rent while you settle down in your new country of choice.” Haider said.
“As per a report by Business Insider, the UAE was, in fact, the second best country in terms of rental yields for overseas property investors.” He added.
Last year’s report ranked the nation second only behind the Philippines in terms of average rental yield a landlord can expect before taxes and costs.
Khan said even residents who are considering moving abroad in the next few years could still capitlise on the undervalued housing market.
He added: “Property is one of the most popular types of investments in the world. So, even if you don’t see yourself living in Dubai in the next five years, it is still a good time to buy a home here and build yourself a little safety nest.”