Dubai, a city synonymous with luxury and innovation, is experiencing an exciting upswing in its real estate market. With opportunities for every type of buyer, from opulent beachfront villas to sophisticated urban apartments, now is the moment to embrace the allure of property ownership in this dazzling metropolis.
In Dubai, the real estate market is wide open to both locals and foreigners, with experts exclaiming that it is the ideal time to purchase a property. The prices are unmatched globally, drawing a significant number of international buyers to the city. According to Knight Frank’s report, the average house price rose to AED 1,235 per square foot in October 2021, up from AED 1,021 per square foot in January of the same year. This increase indicates a vibrant market set for steady appreciation by 2023 and 2024.
Villas and townhouses are highly sought after, particularly as residents look to expand their living spaces post-lockdown. Villa sales surged by 20% in September, with transactions totaling AED 30,000,000, according to a ValuStart report. Meanwhile, Dubai’s apartment market also remains strong, with properties like the Remraam residential community offering units starting at AED 700,000. Residing in Remraam grants a unique blend of lush natural settings with all the modern amenities one would expect.
For those seeking a more dynamic lifestyle, Mudon Views offers 1-, 2-, and 3-bedroom units starting at AED 1,150,000, including duplexes. The community is designed for active living, with plenty of outdoor spaces to enjoy. Alternatively, La Violeta, an upscale off-plan project at Villanova, is set to complete by 2025. Featuring elegant 3- and 4-bedroom townhouses with maid units, prices begin at AED 1.45M. The development promises a family-friendly environment with superbly efficient floor plans and chic interiors.
Purchasing property in Dubai includes both ready-to-move-in and off-plan options, each with distinct advantages. Ready properties allow buyers to physically inspect the home, ensuring there are no surprises post-purchase. These homes can immediately be rented out, providing an instant income stream. However, higher upfront costs, including a 25% down payment, and potential repair needs can add to the expense.
Off-plan properties, purchased either directly from developers or current owners, typically come with lower prices, often 10-20% less than completed homes. They also require smaller initial payments. Yet, buyers need to be cautious of possible project completion delays or market changes.
It’s crucial to factor in additional costs beyond the purchase price in Dubai. The Dubai Land Department (DLD) mandates registration within 60 days of purchase, charging 4% of the property’s sale price. Further costs include agency fees, conveyance fees, initial deposits, and optional insurance. Service fees for property upkeep are also paid annually.
To ensure a successful property purchase, experts advise checking the developer’s reputation and punctuality. Additionally, it’s wise to pay as much of the property in cash as feasible to keep mortgage amounts low. Ideally, monthly mortgage payments shouldn’t exceed 20% of household income.
Embarking on a real estate journey in Dubai is not just an investment opportunity; it’s a chance to become part of a vibrant and ever-evolving city. Whether you opt for a ready property or an off-plan development, understanding the nuances of the market and associated costs will empower you to make informed decisions and secure a slice of Dubai’s unique urban tapestry.
