Fully furnished villas and detached houses are in high demand as per the Dubai Land Department. But it’s not just the ‘glut’ on the market that fuels this exponential rise.
Prices, too, have been showing their upward trajectory over the last six months. Increasing interest in the mid-to-high housing market represents a fundamental change in the thinking induced by the epidemic, say, experts.
Prices have been reduced, at least in the mid-to-high and luxury markets. Lower down payments, a dip in interest rates, an enhanced loan-to-value ratio, and Dubai’s picture as a haven for investment are primarily the reasons for the increase in demand and prices in this market.
For now, only high-end properties have seen an increase in prices and demand. This year, it is expected to have a full impact on other low-to-mid categories. Rents and sales rates will gradually increase around the board by the end of this year, analysts predict.
Now when we’re at it, there’s still a debate among expatriates about whether to rent or buy a home. One way to reason is to know how long you’re planning to remain in the country. “If you will afford the same rent for 10 or 15 years, the house is yours. You’ve got to do the math,” says Gupta.
But is it a good time to buy something? Ok, it just depends on your financial wellbeing rather than on the rates determined by the real estate market right now. “Investing what you can save. Right today, the whole global climate is a little unpredictable. We’re expecting things to be better in six months, but now isn’t the time to be hostile. If you have a buffer, an emergency fund that will protect you from any untoward experience, then buy it,” says Gupta.