Why more and more expats prefer to buy rather than rent an apartment in Dubai?

15.07.2016
From a predominantly tenant Dubai property market turns out into the market for real buyers.

It's no secret that more than half of Dubai’s population has always preferred to rent rather than buy property in the emirate, given the temporary nature of their stay in Dubai. But times are changing, experts say, and more and more tenants are thinking of buying a house of their own.

This trend is actually felt across all market segments, from the most exclusive villas to affordable studios on the outskirts of the city. And given those budget-friendly options many local banks now have to offer to middle-earners, end-buyers in Dubai will increase in numbers every day. For example, according to some real estate agencies, the demand for mortgage deals tripled in March and April 2016 compared with almost two previous years.

Another reason for increased interest in buying rather than renting is a current pricing period, which, according to many experts, is the best time to buy a home. Prices for different types of Dubai real estate are now perhaps at their lowest level and will soon start to rise again. There are all preconditions at place for this now, given the expansion of the city, its status as the regional main business hub and hosting Expo 2020 in the near future.

Some developers already interact with bank lenders to provide homebuyers the most favorable conditions for mortgage payments. Therefore such areas as International City, Sports City, Motor City, Al Barari and Al Quoz could soon expect a surge in buyers’ activity. Forward-thinking investors are buying apartments here in batches, for renting property in Dubai is a really profitable business, minding the absence of taxes and the highest rental yields rate in the world (7 to 10%, depending on the housing type).

Affordable housing units also usually have the most convenient payment plans, such as those offered for apartments in Grand Horizon Tower in Al Barari with views of the golf course. With an average cost of USD 270,000 per one bedroom apartment you can pay just around USD 80,000 on the handover, while the remaining amount (70%) can be paid during the next three years. As for the infrastructure development, imexre.com has recently reported about revival and expanding plans Dubai Government has for the most of the remote areas in the near future.

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