What Are the Advantages of Buying an Apartment in Dubai?
It’s easy to make the assumption that Dubai’s property market is akin to London or New York, where luxury property is out of reach for many. Like these cities, Dubai is a highly attractive global metropolis and one of the world’s most cosmopolitan hubs. In contrast, however, there is an abundance of more affordable but high-quality, luxury properties available in Dubai. Luxury property may be well within reach.
Dubai is a realistic opportunity to buy a luxury property to add to an investment portfolio, or as a residence for you and your family. If you are currently renting a property in Dubai, it would be prudent to look carefully at the pros and cons of continuing, and whether you might be wiser to buy an apartment in Dubai.
What are the greatest advantages of buying, not renting?
In most parts of the world, Dubai included, it often makes more sense financially to buy rather than rent. Here’s why this is usually the case.
● Your home is your own
Unless you plan to move around frequently, owning your own home is far more rewarding. You can decorate and furnish it as you wish, for a start, without needing to check with a landlord. It will usually feel more like home than a rented property.
The home should be yours as long as you wish, as long as you keep up all mortgage payments, if you have one. This feeling of security can be priceless.
● It makes sound financial sense
Once your home is fully paid for or your mortgage is paid off, you’ll no longer need to pay for somewhere to live. This is an appealing prospect.
Even if it feels like this may be a long way off, you can still benefit in the shorter term. Property almost always increases in value. As it does so, the equity (the market value less any mortgage value) increases. You may choose to sell your property and use this profit to buy a more expensive property or to fund other projects or your retirement.
● Renting is often expensive
Rental rates can be expensive. Paying for your own property is frequently less outlay month by month (although bear in mind that there may be more maintenance costs).
These realities apply in most cities. However, there are reasons why buying in Dubai may be particularly attractive to you.
What makes Dubai an attractive place to buy?
Here are five of the most crucial reasons Dubai is a worthwhile place to buy a property.
1. Sustained development and government investment in infrastructure
Dubai has proven over and over that it is a city committed to ambitious, innovative development that leads the rest of the world. Alongside residential developments, there are plentiful plans for recreation and leisure, hospitals and schools, new road links, and retail areas.
There are also commitments to sustainability and rolling out smart city initiatives that will continue to greatly improve residents’ lifestyles. These developments will also help grow the value of your property.
2. Luxury property is more affordable
The Knight Frank Wealth Report for 2019 showed that like-for-like luxury homes in Dubai offer far better value than those in other major cities around the globe, including Hong Kong, London and New York. If you are planning to live in Dubai long-term, this is excellent news. You will certainly be able to buy more space or greater luxury for your investment than in many other global cities.
Greater affordability does not necessarily mean that design or space are compromised. Dubai is known for its futuristic, lifestyle-led property, and this extends right through the market. This means you can buy a unique, spacious apartment in a well-designed development.
3. Attractive areas for all buyers
There are multiple highly attractive freehold areas currently available for international buyers. All have distinct personalities, and the excellent level of choice available means that you will find the community that is right for you.
For example, there are currently ongoing developments in the area of Dubailand. These include luxury, contemporary high-rise apartments, family homes and luxury villas. Dubailand is home to multiple distinct communities. DAMAC Hills is one such community, with vast parkland space that is perfect for relaxation and recreation. Golf is central to this area, but there are numerous other sporting and leisure facilities, too. It makes for the perfect place to escape to at the end of a long working day or week.
Alternatively, live a faster pace of life in the heart of the city within the Business Bay development. This area may be better suited if you’d prefer to live somewhere particularly glamorous and iconic.
4. Excellent rental yields
Should you decide to vacate your property or leave Dubai for any reason, know that Dubai has consistently offered excellent rental yields over the years. In a recent survey, Moody’s Investors Service found that an average ROI for rental properties was around 6-7%, compared to 2-3% in New York and London.
This should assure you that Dubai is a safe investment.
5. The availability of luxury, off-plan properties
Buying off-plan offers the exciting opportunity to be in the heart of new, iconic communities currently planned or being constructed in Dubai. The term “off-plan” describes any property not yet completed.
Off-plan is well worth considering if you are currently in rented accommodation and are not in a hurry to move out. Usually, you can make staggered payments towards an off-plan property until it is fully ready for occupancy. Alternatively, you may prefer to make a down-payment and then pay the balance once the property is ready.
Further to this, you may find good discounts and apartment offers for off-plan properties that mean they are a particularly attractive investment opportunity. This is because they will ultimately result in greater profits long-term. Off-plan properties tend to immediately increase in value upon completion.
All in all, Dubai remains an excellent place to buy a property. Whether you are intending to live in Dubai long-term or relatively short-term, buying a property here is an excellent investment. If you are renting in Dubai right now, seriously consider owning your own piece of this incredible, global and futuristic metropolis.