THINGS TO KEEP IN MIND IF YOU ARE PLANNING TO BUY A PROPERTY IN DUBAI IN 2020-2021
What do you think 2020 is a good time to invest in properties in Dubai? Prices are going low relatively compared to other years, but as Dubai's property value is higher than in other parts of the world, several property deals are still carried on in Dubai.
Anyone who wants to stay in a fun-filled city with top-notch facilities, modern amenities, and high-tech services look for houses for sale in Dubai. The residential property market in Dubai is facing lots of challenges, and hence, several considerations are to be made before you are planning to buy a property in Dubai in 2020-2021. Due to the current pandemic situation, there are many changes in the real estate market in Dubai, and if you are not aware of them, you might make a low deal. Here are the top reasons to buy properties in Dubai-
It is no surprise that Dubai's residential property prices in this current year are not too far from the last decade's historical fall. However, if you invest in Villa for sale in Sharjah or any other location in UAE, you must know that Dubai has lots of micro-markets, so news headline does not always tell the right story. It is better to consult with a real estate agent if you think of buying a property for sale in UAE.
The secondary areas and areas that have high supply-demand policies are experiencing high price declines. However, some prime areas like Palm Jumeirah and Jumeirah Bay have experienced an average price per square foot raise in the last eight months and about 6% compared to the same period last year.
Having low financing costs is not the only way that improves the affordability of the residential real estate market in Dubai. Depending upon the current market conditions, developers have started to provide flexible payment options to attract buyers' demand. In 2020, almost all property buyers are given flexible payment options, where 29% of the total amount is paid post-handover, which was about 6.7% in the year 2016. Property developers are now also providing low payment options during the construction and completion phase.
As per the UAE Central Bank's economic stimulus package, loan-to-value ratios increase for first-time buyers to about 5% for all types of property purchases, including off-plan property mortgage. High LTV ratios are said to be one of the main restrictions for owner-occupation, mainly those who are coming from other countries. However, the economic stimulus package may be easing the regulations and encouraging the expats to check out Property to sale in Dubai or other areas in UAE.
Apart from considering these above factors, you should be aware of Dubai's market price of properties. If you already stay in Dubai, you might have a rough knowledge, but if you are an expat, taking help from a real estate agent or checking out real estate news will help. On the other hand, if you want to stay on rent in Dubai, you can check out apartments for rent in Ajman on classified sites like Bazinga.ae, one of the trusted and free classified ad sites.