Dubai house prices still falling

Published:  16 May at 6 PM
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Expat professionals working in Dubai are being advised there’s never been a better time to invest in a property.

Prices in Dubai’s secondary housing market are softening and mortgage rates remain on the low side, suggesting that now is the perfect time for expats to give up on renting and buy a home. Properties are now becoming ever more affordable across the UAE, spurred on by the number of expats relocation away from the region. Lower property values mean expats for whom a 25 per cent deposit has previously been a financial stretch too far may now be able to take the plunge.

As a result of lower prices in many areas, a 12 per cent increase in buyers is already being reported, with the trend suggesting a new maturity may be developing in the sector. Although the transience of many expat relocations to Dubai may be the cause of hesitancy as regards owning a home rather than renting, it’s still an investment for the future even if its owner is posted elsewhere. Over the past 18 months, prices in many popular Dubai districts have fallen by around 17 per cent, making mortgages cheaper to sustain on a monthly basis than average rental charges.

For those intending to remain in the UAE for at least the next five years, it should be noted the fall in prices has further to soften before the reverse sets in. New developments are being released at modest prices, making them suitable for longer-term investment. As an example, completed villas in Mohammed bin Rashid City and Town Square were put on the market at cheaper release prices and have risen in value by 54 per cent since they were purchased. Expats should remember the Dubai property market is in its early stages as yet, but is expected to benefit considerably from Dubai Expo 2020.
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