According to a survey conducted by Property Experts, Dubai is the third most affordable city in the world to buy a prime residential property. Houses and apartments for sale in Dubai are considered to be a good investment for local and foreign investors since property prices fell by 1.9% in the first half of the year. However, the high demand for luxury flats in Dubai and the city’s reputation as one of the best global hubs for returns on residential investment means that it really is a buyer’s market!
Dubai’s booming tourism industry, which looks set to get even bigger, is another reason why property investors and developers are leading the way in building luxury flats in Dubai. According to the Dubai Tourism Board, there were 15.79 million tourists in 2017, but they estimate that this will increase to 20 million in 2020. Dubai’s population is also likely to grow up to 3.2 million people. This means that not only will more rental properties be required for tourists, but more permanent residential houses will be needed for residents and locals. This explains the vast number of buildings under construction in Dubai over recent years.
Investors capitalise on the property market
The slight dip in property prices has benefits for investors, tourists and locals alike. Investors are able to enjoy the high rental income which Dubai commands, tourists can have a more affordable stay in luxury flats, and locals can make a long-term investment in their future by purchasing a property which is set to make a substantial profit when prices start to increase again.
With returns on a luxury property investment in Dubai averaging 4.6% and property prices dipping slightly, now is the perfect time to purchase property in the Dubai area. Of course, buying a property in Dubai, whether for investment purposes or as a home, can seem like a daunting task. With so much choice, it can be hard to decide whether a Dubai townhouse or a 3 bedroom villa would better suit your needs. But with prices at a five-year low, you can be sure to find an affordable property in Dubai without too much trouble.