While 2017 saw the UAE real estate in a bit of a tight spot with residential values decreased by 5% at the end of 2017, 2018 ends with bright sparks of optimism, leaving investors confident about buying property in Dubai in the upcoming year. Since the downfall last year, many changes have taken place in the real estate market that has turned it back around to make it the next big thing for all investors. Read on to find out more about why you should invest.
Investing in Affordable Housing
While Dubai has never been known for its “affordable” housing, there is now an increased demand for there to be more affordable off plan housing made available. Up till now, 6,000 such residential properties have been delivered within Dubai to fulfill this demand. Still 15,500 more properties are expected to be delivered by the end of 2018, leaving you with many opportunities to invest in these affordable residential arrangements.
The decrease in Prices of Residential Property
In UAE, the residential sector has now become exempted of any value added tax (VAT). Now, the only buildings that are included in the VAT list are all commercial buildings, except hospitals that is. And the final cherry on top is the fact that prices of property in Dubai particularly but also in UAE at large have reduced, making right now the perfect time for you to invest in the UAE real estate market.
Impacts of Dubai Expo 2020 on Real Estate
Adding to all of the obvious factors that point towards why you should think about investing in real estate in UAE next year, the biggest game changer is the prediction that there will soon be a good rise in the demand for real estate, given the fact that Dubai Expo 2020 is just around the corner.
Owing to the Expo, demand is thought to start going up in a few months from now, making 2019 the ideal time to start investing. While demand at present may be low, this is not stopping produces from carrying on with their supply, because they know that there is an immense increase in demand about to hit after the Dubai Expo. This very reason might also be the cause of many collaborations taking place within the sector, which shows how supply is abundant for investors to cash in on as quickly as can be.
Trend Towards Collaboration
There are several trends that took place in the UAE real estate market in 2018 that shows how the market is now heading towards a much better off, stable and investment safe environment.
One such trend is the tie-up between Emaar Properties and Aldar Properties back in March. These 2 companies are the largest real estate businesses in UAE. This tie-up helped to buoy the market and bring back hope for a soon to emerge real estate price recovery. The confidence of these two property giants in the predicted increase in demand after the Dubai Expo is signed enough for investors to begin their investments in the coming year.
Starting 2019 on a Positive Note
We are all aware of just how difficult a time 2017 was for UAE real estate and buying property in Dubai. But the market has only bounced back stronger in 2018, with increased demand now close to the end of the year and a continued increase even in 2019 also. For these reasons, it is advised that it will be beneficial and preferred if you invest in the UAE real estate sector as soon as can be in 2019, so you can cash in on the great value.