After all is said on how to buy property in Dubai for foreigners, experts have concluded that there is a ‘when factor’ that predisposes proper timing. Time waits for no one, and the Dubai real estate market is most unforgiving when it comes to timing.
According to Emirates.Estate getting the timing right is a critical aspect of scaling investment profitability in Dubai. There are seasons when the sector is most lucrative to enter and times when it is more challenging. When you can get and identify these seasons, you will tend to profit more and recoup your capital or at least save a reasonable amount of money. The real problem, however, is knowing those seasons to invest in them.
Move from learning of explosive seasons after it has finished/ passed. Stop nibbling at the leftover properties not picked in the peak seasons. Know the right time and place by obtaining information and staying in the Emirates.Estate. Postings are made regular on the website such that, although it is not a direct real estate vendor, as an aggregator website, you get updates and tips on the peak seasons – which indicate whether it is a good time to invest or not. Additionally, you have a chance to identify the flash/ best offers as soon as they are posted and an opportunity to meet with the vendors, agents, or developers, as the case may be. As such, the first step towards knowing the right time to invest is following the website, but it doesn’t end there.
Is this year still a good shot?
Buying a house in Dubai and other parts of the UAE in 2023 is still a good shot. The conflict here is whether one should buy right away or wait until the year is over to see the trend for 2024 before launching their business. Either way is a smart move, but you must consider that by 2024, trends may have changed, and considering that the trends have been towards an upward review so far in the future, it is highly probable that it will equally be in that line. So, the property you do not buy today may have added more in price in the next few weeks. In the light of that revelation, wouldn’t it be better to proceed immediately?
Another confusion that often makes buyers contemplate and reconsider investments during year-end is the possibility of having trendier, newer apartments and better versions of properties by the new year. Do you know how they say that he who is first to purchase a thing purchases the old model – at least as far as the newer versions are concerned? In making these decisions, it is perhaps important to debunk the common rumours:
- Real estate is a great deal in Dubai, however, there is no oversupply problem
- Real estate has many luxury options, but it is overpriced – the key point here is that it may or may not be. The overpricing factor depends on the quality of the property vis-à-vis the cost, which, when compared, is a very fair price.
- The third fear is that of tourism decline in the country. You will agree that tourism is a major economic caller in the Dubai market. So, with an anticipation of decline in the area, of course one can expect a decline in the real estate sector. However, there are no signs of such decline. With the real estate trends and the newer installations and immigration policies, a rise is expected in the Dubai real estate sector.
- Lessermigration flare: many countries do not like to admit that expatriates play a significant role in the oiling of the economy’s engine. This is reflected in various colours; sometimes, it brings capital per rent and school fees, and at other times, taxation and immigration costs, economic purchases, etc. Either way, the lesser migration trends affected the value of tourism and real estate during the decline period.
Benefits of buying real estate in Dubai today
Firstly, minimum of 6% would have accrued over a property purchased in 2023, by next year. So, if you are buying a property at AED 1 million right now, by 2024, it would have appreciated by at least AED 6,000, that is not to mention that the property may as well be accruing capital by way of rents during the said period. Another way to look at this is that it would cost you at least AED 6,000 to purchase that property in Dubai by 2024.
Secondly, the next factor that can help determine the appropriateness or otherwise of the timing as of the last few weeks of 2023 is the profit & loss projections, and that is clear as well. Expers project a rise in the market and a minimal possibility of a fall (under 10%). Translating that into everyday businesses, it means you are nine times more likely to make a profit and only one chance capable of running into a loss (which may often be as a result of management neglect or poor strategies, etc – not due to a plummet in the system.
Thirdly, the property is unlikely to be dormant and unpatronised. Another factor contributes positively to the profitability margin. Due to the high volume of tourism that Dubai receives per annum, there are always visitors in and around the city who, in turn, patronise the real estate, hotels, and other types of accommodation types. So, when you have the property, it is highly probable that you’ll find a customer to rent it at the time.
When to decide
Expert projections on Dubai real estate are outstanding, and business looks lucrative. The more you delay, the higher it would have appreciated and the more it will cost you. So, if you are interested in purchasing a property, understand that this may be the least it would be, based on projections, so, yes, 2023 is a great time to begin your real estate business in Dubai.