The Dubai housing market keeps developing actively. After easing the restrictions associated with the pandemic and stimulating the sector with smart anti-crisis measures by the government, the emirate not only caught up with previous economic indicators but also surpassed them. The source https://emirates.estate/ told its readers about the current situation in the Dubai real estate sector and how an investor can benefit from these conditions.
What to expect in 2022?
Many global analysts say that the housing market will continue to grow in 2022 on the background of successful results in 2021. Housing is still in high demand despite a reasonable increase in prices. Property Monitor, an analytical service, reported a record increase in property value from August 2021 to January 2022, while monthly transaction volumes increased by 2.1%.
The sector of villas and townhouses keeps growing. Thus, from the beginning of 2022 to the end of 2025, this segment will have about 15% of the offers on the market. For example, in 2021, 37,000 new residential units have been launched, including 5,900 villas.
How can buyers benefit?
The decrease in credit rates due to the pandemic has also led to a decrease in the cost of loans. So, in late 2019–early 2021, the key rate decreased from 5.2% to 2.5%. Now the average mortgage rate is 3-3.5%. According to analysts’ forecasts, by the end of the year, the indicators will reach 4.75-5.25%. Currently, mortgage-purchased properties account for about 20-25% of Dubai’s total transactions.
In particular, the villa maintenance fee decreased from AED 386 ($10.5, ¥67)/sq. m to AED 32 ($8.7, ¥55.5)/sq. m. This indicator is the highest fixed cost of housing, so its reduction makes investments more affordable.
Increase of LTV (loan-to-value ratio) by 5% for all buyers who purchase housing for the first time. Now, when applying for mortgage loans, you can count on 80-85% of the bank’s coverage of the real estate value. Therefore, to buy a dream apartment, you do not need to spend a lot and pay all the money at once, and pay only 15-20% of the amount.
Is it worth investing in real estate right away?
The world’s leading experts believe that now is still a comfortable time to invest in Dubai real estate. Interest rates are lower than in the future, more loyal favorable terms of bank financing and service fees are lower, and prices, despite increased demand, remain acceptable.Apartments for sale in Downtown Dubai from verified homeowners is available at Emirates.Estate. Have time to find your ideal home for accommodation and investment at prices from the owners!
