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Expats urged to invest in mid-range UAE property
| Published: | 1 Oct at 6 PM |
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Is now the time for expats to invest in mid-range UAE property?
As the swing in UAE property prices nears its lowest point since 2014, financial gurus are recommending mid-range property purchases below a bench mark of DH1.5 million as the way to go for expat investors. Purchasers planning a buy-to-let investment are expected to gross between seven and nine per cent in some areas and , taking into account interest payments, upkeep and service charges, should still make good profits on studios and apartments with one to three bedrooms.
This segment of the market is dominating most of the activity in the UAE’s real estate sector, and homes at this level are also good buys for expat professionals at present renting as they’re considered a mid-to-long term investment. Traditionally, the majority of expat professionals have opted for renting rather than buying a home, even if they’d arrived in the UAE with their families. One reason for not putting down roots has been the political temperature of the region, especially now emiratization is the vogue across much of the Arab world in the region.
Recent moves to encourage wealthier expats over the ago of 55 to stay on by offering a 5-year retirement visa may or may not influence the emirates’ sinking property market, by the present cycle is reaching its low point, with upwards the only place to go. Dubai’s residential prices are now 20 per cent lower than in 2014, with further softening in the short term expected to presage a rise.
Potential long-term capital growth is as predicable as it’s possible to be in the property market, making buying via a loan a better and possibly less expensive idea than renting, even in the relatively short term. The direction in which the Arab states seem to be heading as regards reducing dependency on oil revenues seems sensible, with the popular option of tourism revenues likely to succeed in the long run.
As the swing in UAE property prices nears its lowest point since 2014, financial gurus are recommending mid-range property purchases below a bench mark of DH1.5 million as the way to go for expat investors. Purchasers planning a buy-to-let investment are expected to gross between seven and nine per cent in some areas and , taking into account interest payments, upkeep and service charges, should still make good profits on studios and apartments with one to three bedrooms.
This segment of the market is dominating most of the activity in the UAE’s real estate sector, and homes at this level are also good buys for expat professionals at present renting as they’re considered a mid-to-long term investment. Traditionally, the majority of expat professionals have opted for renting rather than buying a home, even if they’d arrived in the UAE with their families. One reason for not putting down roots has been the political temperature of the region, especially now emiratization is the vogue across much of the Arab world in the region.
Recent moves to encourage wealthier expats over the ago of 55 to stay on by offering a 5-year retirement visa may or may not influence the emirates’ sinking property market, by the present cycle is reaching its low point, with upwards the only place to go. Dubai’s residential prices are now 20 per cent lower than in 2014, with further softening in the short term expected to presage a rise.
Potential long-term capital growth is as predicable as it’s possible to be in the property market, making buying via a loan a better and possibly less expensive idea than renting, even in the relatively short term. The direction in which the Arab states seem to be heading as regards reducing dependency on oil revenues seems sensible, with the popular option of tourism revenues likely to succeed in the long run.
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