As per several reports, selling and buying a house in the UAE increased a lot over time. For this reason, the real estate market has become a key driver for economic growth in the UAE. Most realtors observed that besides the commercial properties the next in-demand estates in UAE are apartments and houses. Many real estate experts find it a bit tough to get villas over apartments in UAE. Keeping the market intersections aside, the overall UAE real estate experienced a boom during the pandemic. Many cities in the UAE were considered safe during COVID-19. Due to this, many people throughout the world were comparatively safer in the UAE rather than in their own country.
The pandemic has brought a boom in the UAE real estate market which already hasn’t faced any downfall for long because of its multicultural diversity. People from all over the world move to the UAE mostly keeping in mind their work purpose. This ideology acts as a great push to UAE’s real estate. The realtors in the UAE experienced the pandemic impact with a slight hit in lowered rental prices. Over time, the residential and rental market has bounced back strongly this year with 50 percent rise in their transaction volumes.
Observing the long run of UAE’s real estate, it is clear that a sudden hit might impact the business for a short period. However, the property market has enough potential to bounce back strongly.
When will Dubai Property Prices Rise?
“We have already seen an initial rebound in home prices from the lows of the summer,” state real estate experts when speaking about the resale property market in specific established areas. “In some established communities of UAE housing market, values have surged 15- to 20 percent, although it is important to keep in mind, this level of growth is not constant.” quoted by a renowned realtor in the Residential Market overview. Apart from this, the realtor mentioned that although demand has bounced back, first in the established communities the continuous supply of properties will keep the expected rates under pressure for a short period of time from now.
“Capital appreciation is likely to befall only in tandem with a recovery and reclamation of the worldwide economic climate,” emphasise expert real estate strategists and consultants. Experts have also stated that the property market is almost dependent on the production and distribution of vaccines. Not just the vaccines but also the travel and tourism industry is a big base for the restoration of property prices. As per the standard estimates, the per capita recognition in UAE’s housing market will take up to 3 years at least .
The real estate investors keep an optimistic approach. Therefore, in the latest home sentiment survey in UAE by a research and investment company, 33 percent of the UAE homeowners expressed their belief that the price of the house in UAE will increase in the coming months.
Why You Should Buy a House in UAE?
UAE is the country where all the facilities have been provided with the purpose of business profitability and the investors who wish to buy a house in the UAE. Whilst buying a house in the UAE, most realtors suggest putting emphasis on the location. Many people come to the United Arab Emirates with the plan to make their stay in the country for a while and then move to either another country or to their home country. However, most of the times, people stay longer than they would have planned
The reason that makes them stay in UAE could be the quality of life, tax-free incomes, security, reasonable property prices, or the central location of UAE on the world map. Whatever the reason is, UAE has become a second home for most expats now. And for longer stays renting a property for years makes no sense at all. If you are also looking forward to buying a house in the UAE, then below are the aspects you must consider.
House Buying Options in UAE
As per realtors, there are two popular options for potential house buyers in the UAE:
- Freehold
- Leasehold
Under freehold, builders provide the option of “rent to own” and this option is popular amongst the builders. Whereas, the leasehold provides you 99-year ownership of the house in UAE. Not just the homeownership but also the leasehold provides you partial ownership of the land in partnership with the partial ownership of a freeholder who provides you the property on lease.
In this context, a freehold property may be a more feasible option with the residential building. In the title documentation of the purchased property, you do not have to share a name with the part-owner of the land or the property. Freehold is more preferred by people across all the cities of the UAE than leasehold ones.
Off-Plan or Ready UAE House, Which Should You Buy?
The under-construction and off-plan units are quite popular amongst real estate investors because these are the units that could be purchased at a better price and tend to improve the prices after the completion of the construction. Therefore, there is a risk factor involved with the off-plan units. I.e., a property might take longer than planned and might not complete due to some reason. That is the reason why realtors suggest always dealing with reputed builders and agents. While ready units might take along their own risk factors. Thus, it is advisable for real estate experts to inspect the ready-to-move houses on their own. And the price of the ready units might be a little higher than the off-plan units.
Conclusion
Considering the lower prices people are buying a house in the UAE keeping the freehold and leasehold options in mind as per their requirements. It would be great if you hire a real estate expert to get the best price and location under your budget. The reason why we suggest approaching a real estate expert is that the realtors are experienced and have in-depth knowledge of the market and the area. Thus, they could help you get the best under the smallest price. The best thing about the UAE house market at present is that the realtors have shown their belief that the UAE housing market. Well, this is the best time to invest in the market to book your profit in the coming years.
Frequently Asked Questions(FAQs)
UAE is one of the best real estate investment places throughout the world, especially Dubai records a major boom in the local real estate market.
The average pay for realtors in UAE is around AED 67,200 per year. Real estate experts work with clients, understanding their requirements in order to facilitate the selling and buying of property and UAE houses.
Here are a few steps to start a property business in UAE: - Name Approval - Initial Approval and Tasheel - Memorandum of Association - UAE local partner - Real Estate Brokers Registration Services - Good Conduct Certificate - Dubai Land Department Approval - Dubai Rented Office Space
The expats who do not live in the United Arab Emirates may acquire freehold proprietary rights over the property without any restriction and the leasehold rights which are valid up to 99 years. The title information is given by the Land Department in the UAE and there is no age restriction to owning property in UAE.
Yes, buying a house in Dubai is of course a great idea because the city is developing rapidly. But it gets financially competitive to buy a property in Dubai than to rent an apartment. Is the UAE good a place for real estate?
How much do realtors make in Dubai?
How can I start a real estate business in UAE?
Can a foreigner buy a property in UAE?
Is purchasing a property in Dubai a good idea?
