Is now the right time to invest in Dubai property?

When it comes to investing in property, it does not take an expert to understand that the best time to purchase is when the prices are low, rental returns are high and there is a potential for solid capital growth. The property market in Dubai is now at this point and so, experts are claiming that there has never been a better time to invest in property in this sector.

An increase in capital is likely

The price of property in Dubai has now reached a low point and so, the only way the prices can go is upwards. Development in Dubai is continuing to grow while the number of expats moving there is on the up. Businesses are moving to the area and so it is becoming a hub for many large organisations and so experts have hinted that prices are likely to increase over the next few years.

Flexible payment options

Due to the competition between developers, purchasing property for sale in Dubai has all of a sudden, become a lot easier. To help encourage buyers and to increase activity, developers are offering plans that are extremely flexible and many are similar to rent-to-own schemes. This has made purchasing a property in Dubai and attractive but real prospect.

Increased rents and increased returns

The Dubai rental market is known for its high rental costs and so this means that there is a demand for rental properties across the region. Data shows that average rental yields in the city are around 6% for apartments.

There are a number of different apartments available and all offer different returns. Studio apartments offered the highest yields of 8% while a one-bedroom apartment could achieve a 7% yield with two-bedroom apartments offering a return of 6%. Apartments that consisted of three or four bedrooms offered investors a return of 5%.

Population growth and strong development

There is an expectation that the population in Dubai is going to increase as 2020 gets closer and much of this has been attributed to the Expo 2020 event which is being hosted there. As preparations are ongoing for this event, it has led to new opportunities for developers who have now branched out to alternative areas of the city and started new projects.

The Government are slowly improving the infrastructure of the city while the entertainment on offer is also improving, both of which are going to encourage prices to increase.

If you are considering an investment in Dubai property then now is the time to take a serious look at what properties are on offer, in particular the new developments in the southern area of the city.

If you are wanting to visit Dubai then you’ll want a Saudi Online Evisa.

Mark Burns

Mark Burns is a Director and Property Investment Consultant at Hopwood House. With over 10 years' experience in property investment, Mark has provided investors with a wide range of opportunities in exotic locations around the world.

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