Are you looking to invest in property in 2019? Well, Dubai remains at the forefront for global property investors thanks also to no property taxes.
Dubai has actually suffered a 25 percent annual loss in the real estate sector in 2018, while Abu Dhabi residential prices have fallen by 6 percent over the past year as per Arabian Business (AB). Key reasons for the property market downturn, were identified in “a sharp drop in real estate sales and prices due to oversupply and weak demand.”
But according to the DLD’s Department of Real Estates Studies & Research, despite a fall of new sales transactions for either personal use or for investing, the emirate continues to be a ‘preferred investment destination’. This explains more property developments in the works to entice customers into purchasing a property regardless of market conditions.
In 2019, the market is expected to still be slow and according to property consultancy and chartered surveying firm headquartered in Dubai Cavendish Maxwell’s Property Market Report prices will continue “to decrease from last year, with villas and townhouses now costing, on average, 6.2 percent lower than a year ago.” This with the exception of Business Bay and Jumeirah Beach Residence (JBR).
However, property prices are also tending to stabilize, according to the Dubai Q1 2019 Property Market Report, especially in hotpots like Dubai Marina and Arabian Ranches. This is good news for those looking to purchase assets in a foreign country. Also, interest remains high in Downtown Dubai and Palm Jumeirah, as well as Marina Pinnacle that are still the most sought-after districts, popular with expats and potential tenants.
According to real estate portal Bayut.com, there are also good news in more affordable neighborhoods like Dubai Silicon Oasis, JVC and Dubai Sports City; these areas have shown a slight increase in prices and a higher volume of interested buyers, thus, making it a high-level investment option.
“However, many potential buyers continue to wait for the market to soften further during the first six months of 2019, [Property Market Report] noted.” Investors are looking for the best conditions to maximize profits. This trend is confirmed by international property company Chestertons, that noted in its Observer 2018 report that the “overall rental rates for apartments and villas softened by 4% and 2% respectively and this is now attracting the interest of would-be investors.
So, are you ready to join the millions of expatriates living in the UAE or make the investment as a second home and earn rental income? (Note: Dubai’s total real estate sector are not subject to the 5 per cent VAT, said Sultan bin Mejren, director general of Dubai Land Department.)
This might be the best time. Dubai will fare better next year for the reason that the international trade fair Expo 2020 is likely to lift the hospitality sector with ready-to-move-in residential plots.