The best time to invest in the real estate market of any city is when the prices are at their lowest, the rental yields are high and there are good prospects of capital appreciation. Dubai’s property market is reflecting all these factors at the moment and that is why experts believe now to be the best time to invest in the emirate’s property sector.
Room for capital growth
Property prices in Dubai have already hit the bottom and the only way ahead is up. Owing to the strong development activity, increasing expat population and booming business, property experts believe prices will rise in the years ahead.
Buying properties becomes easier as competition between property developers increases. In order to spur buying activity in the emirate, property developers are now offering payment plans so flexible that some even resemble rent-to-own schemes, making buying extremely easy and fruitful.
High rents and yields
The rents in the emirate are high, which means there is a genuine residential demand that is supporting the residential sector of the city. According to data from Bayut.com, Dubai offered 6% average rental yields on apartments in August 2016.
Breaking down into various apartments categories, the property portal found that studio apartments were not only the most economical but also featured the highest yields at 8%.
One-bedroom apartments offered 7% yields, while average yields of two-bedroom apartments stand at 6%. Interestingly, both the three-bedroom and four-bedroom apartments fetched their owners 5% property yields.
Population and Development
The government expects Dubai’s population to rise further as we move closer to the year 2020, when Dubai will host the Expo 2020 event. All the preparations for the global event are opening new avenues for property developers and finding greener pastures in the southern end of the city, they are launching new projects.
The infrastructure of the city is improving and a number of entertainment options are also opening in the city, which are expected to drive property prices further in the areas around them.
If you are still waiting for the best time to make that property investment in Dubai, we recommend you to act fast and focus on Dubai South and suburban localities of the city.