Dubai Real Estate: The Current Scenario and Prospects

Enriched with developments and packing cultural celebrations for the whole year, the emirate of Dubai is prepared to welcome millions of tourists in 2021. Be it the highly anticipated Expo 2020, Dubai Shopping Festival, or any other event that catches your eye, you can be sure that the hype is real. People are preparing to make the most of the current year in Dubai and this is exactly what investors are getting ready for.

Up till now, in most of the emirate’s prominent localities, investors have bought at least one apartment for sale in Dubai. Hoping to cater to the large populous that will be landing in the emirate all year round, landlords are either increasing their inventories or renovating their existing properties. Since tenant demands can vary from a preference for small spaces to villas and comparatively bigger residential configurations, it’s hard to say which properties will fare best in the coming term.

What the Dubai Market Says

As per the statistics, the number of transactions in January 2021 alone was worth $1.3billion. Compared with the data collected from January 2020, this was a rise of 15.5% in the number of transactions and a 37% increase in terms of value. The data is enough to suggest that the real estate industry is quickly picking up the pace of recovery.

This January, many investors went ahead and invested in either secondary properties or off-plan projects. According to market analyses, almost 72% of all transactions included secondary properties whereas, the remaining 28% included off-plan projects.

With the total number of secondary properties being around 2373, these properties valued at a collective of $1.47b. In terms of transactions, 70% of these properties were apartments and 30% were villas. Following this, one can easily understand that the market is witnessing substantial changes in terms of buyer interests and preferences.

What You Can Expect

It’s no secret that investors are getting ready with their inventories to greet plausible tenants throughout the year. Most would prefer to have long-term tenants or buyers in a competitive market. In order to get the highest value for their properties. However, this is subject to conditions such as where your property is located, the demand patterns for the area, possible future developments to be expected, the property itself, etc.

While there are several communities in Dubai that are known for being luxuriously appealing, there are options in the far south that are being deemed gold mines. With prices being substantially down for these localities right now, investors are narrowing in on the areas for considerable properties. The demands for areas such as Dubai Marina, JVC, Palm Jumeirah, Business Bay. And other areas have been known to be evergreen. That is to say, any investment in the area is guaranteed. To either get monthly yields or a high turnover rate.

How Should You Go About Investing In Dubai?

Investing in the emirate requires a patient mind. Professional real estate agents at your side combined with a lot of research. Since the city is teeming with state-of-the-art options that are each offering something unique, you can’t afford to hasten dealings. There are several things that you need to make sure about the property. Before you can consider selling or renting it out.

You need to consider everything in terms of a resident’s experience. Your tenants are likely to be visitors, employees, or people coming for their businesses. Depending upon whether they bring their families or not, these people are likely to search for properties to stay in. For the more eccentric parties that are interested in buying properties made by the best real estate company in Dubai, you can only make a deal if you have off-plan properties. That way, you can be sure that you are profiting from the venture.

Conclusion

Real estate is not everybody’s cup of tea. However, everyone can understand the prospects of reaping profits from real estate and aspire to become a landlord. Given the conditions of the emirate. It’s hard to say whether one should wait for better properties to be made available or invest in existing ones. Since there are a lot of factors to be considered. You need to spend an ample amount of time on each one to have the best chances of profiteering.