After being the top performer in last year, Dubai property market is being predicted to experience price rises of 10-15 percent. Strong property market and booming economy support steep rental hikes enlisted asset market on the top among Asian market like Beijing and Shanghai. The progressing market conditions are making tenants to think about buying their own home. According to experts investing money that was paid as rent will not remain dead for longer time period. Over the time your home will gain some worth. Having considered current economical conditions and financial buying makes more sense over renting.
Average per annum amount for mortgage is less than the per annum amount for rentAt an average a tenant in Dubai pays 8 percent per annum of total value of the asset. Banks in Dubai are issuing mortgages at rates of 5-6 per cent per annum. This means home buyers need to pay less for bank mortgage as compared to the amount they are paying as rent for the property which they don’t own. Current market conditions of the emirate supports buying over renting because rents are rising.
The changing rules and regulations have also made the market more investor friendly. Genuine investors are welcomed to be the part of real estate sector of this emirate. Residential buyers can take benefit of low interest rates on mortgages. Off plan properties are also available cheaper prices with down payment plans which allow buyers to pay installments. Buying is beneficial in long run as buyer will finally become the home owner as he payoff the mortgages. In contrast tenants didn’t get anything upon paying same money as rent.
Right time for buyingOnce you have decided to buy a home to become a homeowner, next question which comes in your mind is when you should buy? It has been observed that escalating rents always drag tenants towards buying. Rents are expected to rise 100 and 60 percent in areas like Downtown and the Springs respectively. Senior Vice President of Damac Properties clearly mentioned that if you are living in Dubai and have further plans to stretch your stay here, it is better consider buying a home over renting.
Important Finances for buying property in DubaiAfter taking final decision for buying over renting, there are few important things a buyer should consider before purchasing a house. While searching a home to buy it is good to arrange finances that include primary bank approval, mortgage processing and Dubai Land Department fees, , transfer fee, broker fee, property valuation fee and service charges. Whereas location is also a primary factor buyers consider before buying.
Dubai has been currently facing price rises due to major infrastructure boost in are around Dubai World Central. Successful win to host EXPO 2020 has significantly increased the market sentiment and mega real estate developers have announced to complete few important infrastructure, leisure and commercial projects in Dubai. Several stalled projects have been revived to provide new supply of residential units in Dubai property market.