Investment Opportunities in Dubai: Changing Market Trends

Sun, 2018-05-20 11:37
Investment Opportunities in Dubai: Changing Market Trends

The Dubai property investment market is seeing changes in 2018, with the introduction of VAT (Value Added Tax) in the UAE, as well as the anticipation of Expo 2020 and the emerging market of 3D printing.

We have gathered information from major real estate experts on the predicted and current trends of Dubai’s property investment sector.

Prices

According to Khaleej Times, prices are expected to rise as Expo 2020 approaches. The general advice is to buy and take part in the Dubai property investment market sooner than later, as the market will be seeing positive acceleration in the time preceding the exposition. This does not mean to say that prices will abruptly soar, but they are expected to increase. 1

Dubai’s property investment market has been stabilizing since 2017. 2 However, due to the introduction of VAT, developers may be affected with added costs on construction materials and other service transactions. 3

Price performance will vary across Dubai according to the location. Areas with more supply than others will see relaxed prices.

Growing Economy Will Benefit Property Investments in Dubai

Property investment in Dubai is generally increasing, which is an optimistic factor for real estate investors and buyers alike.

The government spending on infrastructure is growing, and the GDP is expected to continue accelerating, which will ultimately aid in the stabilization and growth of the residential market.

Stronger global trade keeps the city at the forefront, providing the city with stronger grounds in remaining a regional trading hub, attractive for property investment opportunities in Dubai.

Off-plan Properties

In a Khaleej Times article, it explains that off-plan sales were the highlight of 2017 – grabbing 65% of sales transactions. By the last quarter of 2017, 1865 off-plan apartments were sold.

Smaller units dominated 2017, with the most popular sold units being one-bedroom and studio apartments (accounting for 39% and 36%).

[Related: Buying an off-plan property in Dubai? Read this...]

Affordability

A prominent trend in the Dubai property investment market is affordability, as reflected in 2017.

Some properties cost more than others, often due to the size and location. Therefore, the market is seeing many first-time buyers, attracted to smaller property units due to the affordability factor.

Developers are complementing this trend by building smaller units, and offering achievable payment plans to suit anyone’s needs– especially tailored for first-time buyers.

Transactions with middle income earners are strong and expected to continue growing.

Dubai Property Investment and 3D Printing

Dubai is becoming a global market, keeping itself on the forefront of technology whenever possible. As 3D printing gains more worldwide popularity and momentum, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has announced the official launch of the ‘Dubai 3D Printing Strategy’, which boasts itself as a one-of-a-kind global initiative, to promote Dubai and UAE as world leaders in 3D printing by 2030 – which will ultimately increase investment opportunities in Dubai.

This means that Dubai is expected to be the 3D printing center of the world. The strategy will aid in cutting costs of construction in Dubai.

By 2025, every new Dubai building is obliged to be 25% 3D printed.

Renters Becoming Buyers

Dubai property investment trends are seeing more tenants turning into buyers. Renters are seeing the benefits of buying and taking part in the market, as they would rather pay off their mortgage than spend thousands every year on paying their landlord’s mortgage.

Before taking a decision, it is important to thoroughly research about the property investment in Dubai. The DAMAC Properties expert team is ready to help you take a decision that suits your needs and wants.

Sources: 1; Khaleej Times, 2; REIDIN, 3; Deloitte.

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